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Archive for the ‘digital closings’ Category

We’ve fielded numerous calls from Realtors asking: What can I do if my client is sick and can’t come to closing?

The answer depends upon whether the party is the buyer or seller and whether the parties planned ahead.

Sick Sellers

Many title companies can accommodate the seller with an e-closing using a Remote Online Notary (RON). Homestead has conducted a large number of Seller e-closings (some sick and some practicing social distancing). Sellers need a computer with Google Chrome or Firefox, a webcam and microphone, and a decent internet connection.

In additions to an e-closing, some sellers may be able to pre-sign documents and have an attorney they know “authenticate” their signatures.  In rare cases, our attorney will authenticate their signature if he is either familiar with them from past transactions or has  had a video conference signing along with another party familiar with the seller.

If e-closing is not an option, the Seller may be able to use a Power of Attorney (See Below).

Sick Buyers

Sick Buyers can present a bigger challenge.  Lenders are not yet ready to allow fully digital closings and we generally need in-person, ink signatures. The big exception: Cash Buyers can sign remotely without needing a digital notary.  The vast majority of buyers have financing and will need another option.

  • Power of Attorney:  This option works best when the POA is already in place.  It is not ideal when first addressed with a sick party because it may require that they visit a notary in person. POA’s present a few issues:POA2
    • Visiting a Notary: Some real estate professionals have recommended that sick Buyers have the POA notarized at a Bank drive-through.  This seems unfair to the bank employees and socially irresponsible.
    • Authentication by an Attorney:  A safer option is to ask if the Buyer has an attorney who can “authenticate” their signature without the Buyer being physically present. We may be able to accept a scanned copy of the authenticated signatures along with a mailed original at a later date.
    • Remote On-line Notary: A third option is to see if the lender will accept a digital, RON notary for the Power of Attorney. This is a long shot but worth a try.
    • HEALTH WARNING:  We are very cautious about working with a power of attorney appointed by someone known to have Covid-19. Most people appoint someone they know well and we need assurances that the Signing Agent has not been in contact with the sick person in the last 14 days.
  • Delay:  If the parties have not contemplated a delay, they will need an Amendment to allow for an extension of time to close.  Many parties have planned ahead and included extension terms in their offer.  The Wisconsin Realtors Association (WRA) released Addendum CV to address Covid-19 related issues. The Addendum allows for extensions of time if a delay is caused by:
    • Office closures such as banks, title companies, register of deeds, appraisers, etc. or
    • Sickness, isolation, or quarantine by any party.

Please let us know of any sick party as early as possible.  Homestead will work with you to find safe, healthy, and proactive solutions.

Planning Ahead

The best plan is one that is already in place. Parties should discuss the benefits and drawbacks of Addendum CV with their Realtors or attorneys.  In addition, parties may consider appointing a power of attorney (who does not live in their household) in case they are unable to attend closing.

Finally, planning for health challenges is something everyone (not just Buyers and Sellers) should consider, especially in times of uncertainty. It is wise to have a will, power of attorney, and power of attorney for health care. A power of attorney for a real estate transaction only allows someone to sign closing documents. A power of attorney for health care is far more important. It allows your agent (a loved one) to make critical health care decisions that are consistent with your wishes in the event that you are unconscious or incapacitated.

Homestead Title can draft a general Power of Attorney.  We cannot advise you on wills or drafting a Power of Attorney for Health Care. Attorney Peter Zarov, however, can consult with you about these needs to provide assistance or referrals.

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To protect the safety and health of our customers, clients, and staff, Homestead Title has made some significant adjustments:

  • We offer Digital, E-Closings to Sellers and Cash Buyers
  • We are handling in-person transactions as “Drive-Up Closings”

So, how well are these working? 

Digital, E-Closings

We’ve handled many digital closings over the last week and the reviews are positive.  Closing from home is obviously convenient and safe. And the time it takes to close is similar (actually a little longer to authenticate identities). Yet, just as working from home can be awkward and less efficient, so too are digital closings.  The technology is good and easy, but not perfect.  Voices sometimes echo or lag, video can cut out, and explaining documents is slightly harder. Anyone who’s participated in Zoom or other video conferences knows what we mean.  Given our current circumstances, the positives far outweigh the negatives.  In normal times, this will be one more tool in our tool-kit, but will not replace in-person closings.

Drive-In Signing

driveinHomestead Title is handling all in-person transactions at our WEST office as “Drive-Up Closings.” We’ve received fantastic responses as customers appreciate our efforts to protect their health. And, the process has worked very well: Customers call when they arrive, we bring documents and a clipboard, and they sign in the car.  Customers take a little longer to sign. And we answer questions from 6 feet away or by phone.  We can’t wait to return to the closing room, but we’re proud to keep our customers and team safe.

With both Drive-In and E-Closings, we are offering to send all copies via secured, encrypted email.

Some of these adjustments are temporary.  In healthy times, we will not be doing “Drive In” closings — if we do, we’ll serve burgers and shakes on skates!  We likely will handle more e-closing when things return to normal. Yet, we anticipate most closings will return to the closing room with happy buyers, sellers, Realtors, and lenders celebrating together.

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Homestead Title will be taking extraordinary measures to protect the health and safety of our customers, clients, and team.

Remote Staff: More than 85% of our team are working remotely from home.  We have had remote capabilities for over 15 years and you may not notice a difference.  We still ask for patience and understanding as it is hard to work with co-workers who are toddlers, pets, and family.

Driveup2Drive-Up Signings: All in-person transactions will be “Drive Up Closings” at our WEST office until Wisconsin’s Emergency “Safer at Home” Order expires (currently set for April 24). Here’s what you should know:

  • In-Person Signing at 555 Zor Shrine (WEST): All closings will take place at our West office as “drive up closings.”
  • Strict Lock-down of our Office: We are not admitting anyone into our office other than essential staff.
  • Alert Us When You Arrive: Call our main number and we will have our closing officer come right out to your car with documents to sign.
  • Only Signers at Closing: We urge only signers come to Drive-Up Closings. Others can come, but they will not be allowed in our building and will be asked to stay in their cars in the parking lot.

E-Closings are hereDigital Closings: We can do fully digital, remote closings for Sellers or Cash Buyers. The mortgage industry is moving fast to add financed buyers, but we are not yet aware of any Banks or Credit Unions that can do a fully remote closing.

Our mission statement is to make the closing process easier, smoother, and less stressful for our buyers and sellers. For the next few weeks or months, we need to add: “… and safer.”

 

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We can close many transactions digitally from the comfort and safety of your home.

In response to the coronavirus/Covid-19 pandemic, the State and our underwriters have passed emergency rules to allow digital closings and remote notarization!

E-Closings are here

We will be able to accommodate almost all sellers and many buyers with “Remote Online Notaries,” (RON).  This will allow for fully remote, digital closings without the need to leave home.

Buyers with a loan will need their lender approval to conduct a fully digital closing.  Lenders have many considerations and challenges, including investors, underwriters, mortgage insurance, and legal issues. Some may not be able to offer this service right away and others may allow only some documents to be signed digitally.

Homestead currently uses Notarycam and is trained and setting up Pavaso – two nationally recognized, approved platforms.  We “host” closings with a certified, remote-online notary.  The Wisconsin DFI has temporarily allowed Wisconsin notaries to also become online notaries (without the need for including an out-of-state notary) and our team is also adding this service.

Please contact us if you wish to close remotely and we can determine whether this is an option and coordinate with you.  

 

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The self isolation and quarantines of the coronavirus/Covid-19 pandemic creates challenges and disruptions, including in real estate.  The title and mortgage industries are putting forth efforts to overcome these challenges.

Remote Digital Closings May be Available Soon!

A major effort is underway from title underwriters, legislatures, and administrative agencies to allow “Remote Online Notaries,” (RON) in Wisconsin.  This would allow for fully remote, digital closings without the need to leave home. While it would primarily be available to Sellers, some Buyers can also sign remotely.

E-signing2

Buyers with a loan will need their lender approval to conduct a fully digital closing.  Lenders have many considerations and challenges, including investors, underwriters, mortgage insurance, and legal issues. Some may not be able to offer this service right away and others may allow only certain documents to be signed digitally.

Homestead Title is already conducting digital, remote closings for “Cash” Buyers (where none of their documents are notarized and there is no lender).

Look for important updates on Digital Closings in the coming days.

 

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