Remote online notarization (RON) has recently transformed the real estate industry.
This blog will discuss the impact of RON on Real Estate.
RON allows a notary and signer to authenticate and execute electronic documents remotely, resulting in faster, more efficient, and more secure closings.
In addition, RON reduces paper consumption by over two billion sheets of paper used in mortgage loan closings.
With the rise of digital technologies, real estate professionals and clients increasingly rely on various online tools to manage their property transactions.
Despite these advancements, real estate professionals must be aware of the potential for cybersecurity breaches that can harm clients.
In a typical real estate settlement, home buyers and sellers meet with their title company and sign necessary documents before a notary public.
RON provides a more convenient and secure way to complete the settlement process for both parties.
Signers and notaries can communicate remotely during the notarization process using a web conferencing platform.
This reduces the need for face-to-face meetings and ensures that all relevant parties are in the same room during a transaction.
In addition to allowing for more convenient and secure document signing, RON also reduces the risk of fraud and cyberattacks.
Several steps are performed during the RON process that can help prevent identity fraud, including ID verification and ID credential analysis.
In traditional real estate transactions, a notary public verifies the authenticity of important documents.
These services are vital to the safety of financial and legal transactions and prevent fraud in these sensitive areas.
Traditionally, people had to find a notary and travel to a physical location in order to get their documents notarized.
This process often took time away from their daily lives, sometimes resulting in significant inconveniences and frustration.
Now, with Remote Online Notarization (RON), a person can use their computer to sign and notarize documents online using a secure video link.
It’s more efficient and convenient for both parties involved in a real estate transaction, and it also helps reduce paper usage and overall costs.
RON has become increasingly popular among lenders and settlement agents because of its ability to deliver a safer, more efficient closing experience.
While this technology is new, many lenders and settlement agencies are incorporating it into their eClosing platforms to meet rising customer expectations.
One of the key benefits of RON is that it allows for greater efficiency in the closing process. Rather than having to schedule appointments and physically meet with a notary public, documents can be signed and notarized from the comfort of the client’s own home or office. This reduces the time and money spent on travel and ensures that the process is more convenient for all parties involved.
Another benefit of RON is that it allows for greater security in the transaction process. Using audio-visual technology ensures that the identity of the parties involved is verified and that the documents being signed are authentic. This reduces the risk of fraud and ensures that the transaction is completed securely and reliably.
Furthermore, using RON can greatly benefit real estate professionals such as agents, brokers, and mortgage lenders. Using RON, they can streamline the closing process and close more deals in less time. This results in increased productivity and revenue for their businesses.
Despite the many benefits of RON, some potential drawbacks must be considered.
One of the main concerns is the possibility of technology failures, which could cause delays or even lead to the cancellation of a transaction.
Additionally, some people may feel uncomfortable signing important documents without physically meeting with a notary public.
One of the main risks associated with Remote Online Notarization (RON) is that it can make real estate transactions harder to close.
RON is not a substitute for in-person signatures. Still, it can help reduce the risk of fraud because it makes it difficult to impersonate a Notary or a signer, according to the National Association of REALTORS(r).
The most significant risk is that RON could become the primary deterrent to real estate fraud because it eliminates the need for in-person client meetings.
RON is also less stressful for notaries because it saves time driving to meet clients.
Despite these concerns, RON is expected to increase in popularity over the coming years.
In fact, the American Land Title Association (ALTA) predicts that RON will rise 547% in 2020.
Historically, executing real estate documents such as deeds and commercial leases required parties to be present in person for a Notary to verify their identity and signature.
That has changed in the wake of COVID-19, with states embracing remote online notarization (RON) to modernize the process.
Many states have passed RON laws, and several other states are considering them.
This move toward a digital era of notarization will impact all types of real estate transactions, including property transfers and commercial leases.
However, the RON process is not without risks. Notaries can be hacked and their records compromised.
The RON process also introduces new concerns around privacy, security and data breaches.