E-Closing And Drive-Up Closing Updates

Homestead Title has handled dozens of digital or e-closings in the last few weeks. We have been able to accommodate sick sellers, a borrower in lock-down in India, and parties who simply did not want to risk their health for a sale or refinance.

The way our industry handles these closings has been a moving target, sometimes changing by the day or even hour. Welcome to the new “normal.”  Here’s the latest.

Remote Online Notary

We have conducted e-closings using Remote Online Notary (RON). This is a fully digital closing experience, where every signature is digital (like docusign).  Even the notary signs digitally.  This requires a computer with Google Chrome or Firefox, a webcam and microphone, a decent internet connection, and use of an approved e-closing “platform” or service like Pavaso or Notarycam. Homestead is Pavaso certified to conduct closings and act as a remote online notary.

Pros:  Parties don’t need printers, scanners, mail, or UPS and can sign everything on their computer from anywhere.  There is no paper whatsoever!

Cons:  The technology can be very challenging. Failing to answer security questions or having technology challenges can cause delays. Not all title companies have this capability (Homestead does!!). RON cannot be used for Power of Attorney documents or for most lenders, meaning it is limited to sellers.

Homestead uses Pavaso and our own Notary (we don’t rely on third party notaries).

Video Conference Closings

We have handled closings via video conference, using Zoom, Facetime, or WhatsApp.  These are “wet” or “ink” closings — the parties sign documents on paper during a video conference with our attorney, who verifies their identities and signatures on camera.  They deliver the originals back to us and our attorney “Authenticates” their signatures. Wisconsin law allows an attorney to Authenticate the validity of a signature, with the same effect as a notary, based on familiarity with the signature.

Pros:  Virtually everyone can figure out the technology (it’s a simple video conference call), we can use this for signing a Power of Attorney, it is fast and easy.

Cons:  The parties need access to a printer and scanner. They still need to send the originals back to us (usually by UPS and we provide the label). The closing must be a pre-sign at least one day prior to closing.  This cannot be used for lender documents that require Notary Stamps and same-day signing.

In-Person Closings:

We are still handling the majority of our closings at our office.  We are doing these as “drive-in” or “car-hop” closings.  Parties do not need to leave their car.  We provide social distancing and limit contact.  We will continue drive-in closings during the Emergency Order, which was extended to May 26, 2020.

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Home Sales, Sick Parties, and Solutions

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:
  • 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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Adjusting To Digital and Drive-In Closings

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

Homestead 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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Keeping Your Real Estate Transaction Safe

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.

Drive-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.

Digital 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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REMOTE DIGITAL CLOSINGS — Coming to your living room soon?

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.

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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Homestead’s Coronavirus Response: We are Here to Help Buyers and Sellers.

Homestead Title has implemented a plan to maintain day-to-day operations in response to the Coronavirus (COVID-19) pandemic.

Homestead will continue normal operations, without disruption, during these challenging times. We do not anticipate any delays or cancellations as a result of temporary changes to our business. The majority of Homestead’s team will work remotely from home over the coming weeks. Phone and Email will operate as normal and we are available to help.

Closing officers will be available in our office for any scheduled sale or refinance. We will operate with minimal, in-office staff and appreciate your patience and understanding.

We are committed to supporting and serving our employees, their families, and all those involved in our real estate and title insurance transactions.  As we monitor developments and guidance from public health professionals, we will make any necessary adjustments.

Tips for a Healthy Real Estate Closing:

1. Only Signors in the Closing Room: Homestead will not allow anyone in the closing room other than necessary signors (Buyers, Sellers, and their attorneys).  We urge Lenders and Realtors not attend closing and will ask them to wait in our outside lobby.
   1. We will include Realtors and Lenders on all questions by phone.
   2. We will overnight commission checks at no cost to the Realtor or their broker.
2. Sign Separately and Social Distancing: We encourage Buyers and sellers to sign at different times.  We are waiving Seller pre-sign fees until at least June 1, 2020.  Alternatively, we encourage Buyers to arrive on time and Sellers to arrive 35 minutes after the start of closing.  This will allow for minimal contact and more “social distancing.”
3. Remote or Digital Closings: When possible, Homestead will offer remote or digital closings.  Remote notarization is not yet legal in Wisconsin, so fully digital closings are rarely an option other than for cash purchasers. We will explore all options to accommodate our customers and protect the well-being of our community.
4. Clean Office Space:  We are providing clean pens and separate paperwork to minimize contact between people. We are wiping down all surfaces with disinfectant wipe throughout the day.
5. When to Avoid Closing: If any Buyer or Seller is sick,  in contact with anyone diagnosed or suspected of having Covid-19, or has traveled internationally in the last 14 days, please contact us for alternative closing options
6. Celebrate: We are excited to help you buy, sell and refinance. Yet, we will be refraining from hand shakes, high fives, and other close celebrations.  These are scary times, but together we can do this!

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What Daylight Savings Time Means For Realtors

Remember to “spring your clocks forward” by 1 hour on March 8, 2020!  This is great news for people who love evening daylight and the start of spring.  But, it brings an interesting twist for Wisconsin Realtors.

The new Wisconsin WB-11 Offer to Purchase defines deadlines as expiring at “11:59 p.m. Central Standard Time.”   Central Standard Time is our time zone in the winter months.  Starting March 8th and continuing all summer, Wisconsin will be using Central Daylight Time.  Arguably, this means that deadlines in the Summer months expire at 10:59 p.m.

What should Realtors do about the time change?  Enjoy the evening sun and try not to work past 10:59pm.  You will avoid this weird time zone glitch and you will get a better night sleep.

Thanks to Evan Swain of Keller Williams for his brilliant insights on this topic!

Happy Spring and don’t forget to spring your clocks forward at 2a.m. on March 8th. 

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Intro To FIRPTA in Wisconsin

This is the first in a series of videos explaining FIRPTA — the Foreign Investment in Real Property Tax Act.

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The Scoop on Scoops

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Spoofed Emails and Avoiding Cyber-Fraud

Cyber-fraud is a constant, growing problem especially prevalent in the Real Estate industry. This post examines “Spoofed” emails and how to recognize them.  A video tutorial of this post can be seen here.

Scammers create fake emails that look like they came from a bank, title company, or Realtor. Clicking links in the email may download viruses, take you to malicious sights, or convince you to enter passwords or send money.

Always be suspicious of any email that asks you to click on a link, enter a password, provide personal information, or send money.  

Never send money until you call the contact at a phone number NOT provided in that email.

One recent scam involved a common Email Encryption program used by many banks and title companies called ZixCorp.  ZixCorp is a legitimate service that Homestead and other companies use for secure email . Fake or “spoofed” ZixCorp emails look exactly like a bank or title company has sent you a secure or encrypted email. How can you tell the fake from the real thing?

Click Here for a Short Video on how to detect Spoofed Email: https://www.screencast.com/t/0ItwBtOVKCm

Here’s how to recognize a fake or spoofed email:

1.  The Subject line is empty, vague, or unrelated to you. A statement that you have received a “secure message” is too vague.

2.  The email of the sender is not quite right. For example, if you receive an email from Microsoft, you should not open it if the address is @mxll2.microsoft.com.  The random letters at the beginning are sure sign of fraud. The ZixCorp message was harder to detect.  The scammer added ‘S’s in the name: @zixcorpmesssagescenters.com.

3.  The Link has a fake hyperlink. Always hover your cursor over a link before clicking — it will show you where you will be taken.

4.  There are grammatical or typographical errors. An email with errors is a red flag of potential fraud.

You can safely open emails from ZixCorp – the real emails are safe and secure.  The trick is recognizing the fakes.  If you have any suspicions or are unsure, always call the company that sent you the email.  Find their number in your contacts or their website, not on the suspicious email.  And, never wire any money without first calling to confirm all information.  Scammers used spoofed emails to try to convince people to wire money. Once the money is sent, it is usually gone to a foreign country and impossible to return.

Be cautious, vigilant, and safe.

Homestead Title

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