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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