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The real estate industry is booming with innovations and modernization to survive. The current COVID scenario has forced many companies to improvise their work style and become more accommodating. Incorporation of Remote Online Notarization (RON) is one of the critical pieces in all those changes.
The Covid-19 pandemic has brought in severe changes in the day-to-day life of every individual. With the change in personal factors, the business factor, too, has changed. RON was majorly introduced & implemented in the maximum number of states during this pandemic.
Over the last decade, there has been a significant increase in digital closings, eNotary laws being the fuel behind these numbers. Thus, RON has been introduced to make businesses simpler and carry out the working of companies smoothly. At this moment, around 27 states have incorporated RON laws.
Here is what you need to know about RON & how it is revolutionizing the real estate industry?
What is Remote Online Notarization (RON)?
RON uses comprehensive audio/visual technology to carry out notarial acts like legalizing the document, identifying the person, and further signing the document without any physical contact between the principal contractor and notary public. In real estate specifically, RON enables the closings of deals to happen remotely with the electronic form. The main aims of Remote Online Notarization are:
- Complete electronic processes.
- Reduction in physical documentation and physical contact.
The essential components of RON involve using electronic signatures/notarizations and audio/visual technology. In addition to that, there are some key components to carry out a perfect recognized RON transaction.
What are the Business Criteria to use RON?
To carry out a smooth and successful real estate transaction via RON, one must follow specific guidelines and be authorized by the state government. The guidelines usually differ from state to state or other notary governing entities. With the COVID-19 scenarios, some states have already implemented new legislative guidelines and requirements for RON. Some of the basic guidelines for RON by every state would be:
- A certified RON registration.
- Active Notary commission.
- An Application to the Secretary of the state.
- Selection of the software to be used by RON.
- Applicable fees.
Why Should You Use RON for Real Estate?
Remote Online Notarization makes important transactions of banking, real estate, e-closings more effective and safer. RON completely works as a fraud deterrent and assures that the documents are authentic and trustworthy. The notary records the proceedings of the entire notarization process.
In a world that is continuously moving and where signers & notaries find it difficult to be together in the same place, at the same time – RON gives you the access you need to close that deal!
What are the benefits of RON in Real Estate?
- Easy and quick transactions.
- Loan closings every day.
- We are saving a massive amount of time and money.
- More revenues.
- Effective and safe return policies.
- Lesser risks.
How to carry out a RON transaction?
Every state has its own process and guidelines for certifying a notary with it’s own RON process. But basically, the following are the most common processes involved with any notary carrying out Remote Online Notarization process. Let’s see the process in detail:
- The first vital thing is that the notary should not just have an online presence but it should also have physical presence in the state of the property under the process.
- Identity verification plays the major part of the process. So the process should have multi-factor authentication and technology-backed video scan to verify the identities of the signers.
- The process should also have the ability to authenticate the validity of the scanned govt id proofs of the signers.
- All the digitally signed documents must be encrypted properly to prevent unauthorised access.
- The overall notarization process must be recorded with proper backup configurations. The data should be stored and maintained upto certain years which is defined by the state government.
These guidelines are to be met to carry out any transaction with related estate processes. The platform should be registered and secured. Following the government guidelines is a must.
Is Remote Online Notarization the new normal?
With tons of benefits of security, cost-saving, efficiency, and risk-free notarization is RON the future?
The answer is YES!
RON is indeed a future-friendly and unique innovation that the traditional paperwork notary process doesn’t have. It has proven to be a critical tool for title and escrow business.
Every transaction will not only be handled remotely but also be carried out safely with the right technology. RON transactions are better equipped to perform the notary process and meet the consumer and the partner’s needs.