Game Changer for Remote Real Estate Closings: Remote Online Notarization Morphs into Remote Ink Notarization

Due to the COVID-19 pandemic, Attorneys Title Insurance Fund and Old Republic Insurance Company along, with other underwriters following suit, decided that they would allow for Florida Remote Online Notaries to notarize both electronic and wet-ink closing documents remotely through a Remote Online Notarization (“RON”) provider. This approval now paves the way for both buyers and sellers of Florida real estate to be able to sign paper closing documents that need to be notarized without having the necessity of strangers coming into their home or, in the alternative, going to a conference room with other people to execute these documents. These types of closings are called Remote Ink Notarization or RIN for short.

 

RON: Pushback and Moving Forward

Up until now, most banks and lenders were not fully participating in Remote Online Notarization because they wanted to have the original promissory note  executed by the borrower on paper with a pen, otherwise known as a wet-ink document. Thus, there was little buy-in from the banking industry on approving the use of a RON closing. That caused great consternation in the real estate closing community because it put buyers, sellers, title companies, and Realtors at risk because they would still need to get together in person to execute certain loan documents at a formal closing.

The same problem held true for mortgages as mortgages typically need to be notarized as well as witnessed. Many banks were not accepting electronically executed mortgages and also wanted wet-ink executed mortgages.

The Remote Online Notarization process was only established to create documents that can be executed electronically by using an audio-visual communications program online that can record the execution of said documents and verify the identity of the parties executing them. The big breakthrough, however, is that certain underwriters, and probably soon all title underwriters, will allow for the execution of both traditional paper documents and duplicate electronic documents where the the Remote Online Notary can then virtually notarize the electronic documents and subsequently notarize the original paper documents.

 

RON⇒RIN

That is a game changer and will allow for RON closings to morph into RIN closings. Remote Ink Notarization will likely become the ubiquitous procedure that is used for all closings during the pandemic; and, in all likelihood, on a going-forward basis. Check out our Title Talk video discussing the differences between RIN and RON.

We have always been an attorney-driven title company, but we are now closing your transactions as New Path Title. Our Title Leap closing platform lets you close your transaction online and facilitates RIN so you can close your buyers and sellers securely at a distance. We have the knowledge and the tools to help you manage your business safely and keep your clients in the loop. Give us a call at 561.838.9595 or email contact@titleleap.com to learn more about closing your next contract on Title Leap.