Advantages of Remote Online Notarization Today and Beyond
The COVID-19 pandemic has brought about a great number of changes in how we work and live our lives. In real estate, it has forced all of us to find new ways to maintain a balance between doing business and protecting the health and safety of our associates and clients.
Remote online notarization (RON) is a great example of a tool that does both. Stewart was the first to use RON in digital closings, and we’re excited about the possibilities now that it’s become legal in Arizona.
Here, I’d like to answer some of the questions we’ve received about RON over the past few years. Hopefully, this will answer some of yours.
Leslie Banes
Escrow Operations Manager
A 37-year plus veteran in the escrow industry, Leslie is a Certified Senior Escrow Officer, Certified Escrow Instructor and Senior American Settlement Industry Professional who currently serves as Escrow Operations Manager.
- What is RON?
- What is RON?
- Is there special technology required to perform a RON?
- Is there special technology required to perform a RON?
- Is RON legal in Arizona?
- Is RON legal in Arizona?
- If this didn’t become effective in Arizona until April 10, how has Stewart been able to use RON prior to that?
- If this didn’t become effective in Arizona until April 10, how has Stewart been able to use RON prior to that?
- Can RON be used for loan documents?
- Can RON be used for loan documents?
- How much does it cost to use RON?
- How much does it cost to use RON?
- Does this change document delivery?
- Does this change document delivery?
- How does my client know when to sign?
- How does my client know when to sign?
- How does the notary know that the signer is who they say they are?
- How does the notary know that the signer is who they say they are?
- What ID do I need?
- What ID do I need?
- What vetting questions can I expect?
- What vetting questions can I expect?
- Does the client need to be a United States citizen?
- Does the client need to be a United States citizen?
- Can the client sign outside of normal business hours?
- Can the client sign outside of normal business hours?
- Is this really safe?
- Is this really safe?
- Can you use RON if clients are in another country?
- Can you use RON if clients are in another country?
- How do you order a RON signing?
- How do you order a RON signing?
- What computer / internet / technical things do I need?
- What computer / internet / technical things do I need?
- Can I be a part of the signing, too, in case my customer has questions on the documents?
- Can I be a part of the signing, too, in case my customer has questions on the documents?
- How and when will I be notified by the notary?
- How and when will I be notified by the notary?
- How long does the actual signing take?
- How long does the actual signing take?
- What are some of the other advantages?
- What are some of the other advantages?
- How has COVID 19 changed the process?
- How has COVID 19 changed the process?
- What would you say the best part of this service is?
- What would you say the best part of this service is?
- More resources
What is RON?
What is RON?
RON stands for remote online notarization. It’s a form of electronic notarization where the signer appears before the notary at the time of the notarization using audio-visual technology over the internet instead of being physically present in the room. Stewart was the first title company to close a fully digital closing, in July of 2017. RON is an integral part of our digital closings.
Is there special technology required to perform a RON?
Is there special technology required to perform a RON?
Yes, the statutes and rules are very particular about the technology, primarily for security purposes. The notary must be able to ensure that the signer is who they say they are, and the signer needs to be certain that their data is protected and secure. Notaries are required by the Arizona Secretary of State to contract with a vendor that provides the technology, or platform, that they intend to use.
Is RON legal in Arizona?
Is RON legal in Arizona?
Yes, on April 8, 2020, Governor Ducey signed an executive order moving up the effective date from July 1 to April 10, 2020.
If this didn’t become effective in Arizona until April 10, how has Stewart been able to use RON prior to that?
If this didn’t become effective in Arizona until April 10, how has Stewart been able to use RON prior to that?
RON is already legal in several states. Stewart Title has been using notaries from those states for transactions here in Arizona. Stewart has thoroughly vetted the remote online notary process and includes transactions as a covered risk in our title insurance policies.
Can RON be used for loan documents?
Can RON be used for loan documents?
Theoretically, yes. However, many of the lenders are not ready for this yet either due to technology they use, regulatory issues, secondary market issues or their own underwriting guidelines. It’s important to remember that the lenders are highly regulated. It may be prudent of them to be cautious on this. With the COVID-19 situation, I expect to see more lenders using RON and similar technologies sooner rather than later. The lenders must be able to do a fully digital closing, which means allowing RON for their Notarized documents, including the Deed of Trust, and being able to accept an eNote, both of which are part of completing a fully digital transaction.
How much does it cost to use RON?
How much does it cost to use RON?
The cost varies from platform to platform; however, the cost is usually less than using a traditional outside notary. It also saves on delivery fees.
Does this change document delivery?
Does this change document delivery?
Yes, the documents are delivered electronically right back into our software, then we electronically deliver the document directly into the county recorder systems, all within a matter of minutes.
How does my client know when to sign?
How does my client know when to sign?
The RON signing process is a hybrid, or two-step, process. We use the remote online notary system only to execute the documents that require notarization. Documents that don’t require a notary, like settlement statements and our escrow forms, are executed using DocuSign®. We are very thorough in explaining the process to the client and we can email them a PDF of all closing documents to review in advance of the signing, if needed. We can review figures, explain documents and answer any questions at this point, too. We like to do both the RON and the DocuSign well in advance of the closing date.
So, if a RON signing is needed, there are two ways to set up the appointment. We can coordinate with the notary service and the signing will take place at a specific time on a designated date. Documents are sent in advance of the appointment for the client to review, then they click through the email to start the process at the appointed time. Within a few minutes, the notary will join the meeting to complete the signing and notarization.
The second option sets up the signing to take place within a window of time, allowing the client to start the process when it’s convenient for them. With this option, the notary service readies the documents and emails them to the client for review. The client then can click through the notary service email and request a notary when it’s convenient for them. Documents are typically set up to be ready for this process within 24 to 48 hours. Again, once the client starts the process, it just takes a few minutes for the notary to join and complete the signing.
We’ve had great success with both processes. In either case, the client receives an email that lets them know about the process and gives them specific instructions and the documents to review.
If a traditional mobile notary signing appointment is needed and closing documents are ready – including lender loan documents, if applicable – an escrow officer will communicate with the client and determine a time that works best for signing. The mobile notary will confirm the time with the client and the escrow officer. Most importantly, Stewart stays in close communication with the client and the real estate agents through all these processes to keep everyone informed and to make the process as stress-free as possible for the client.
How does the notary know that the signer is who they say they are?
How does the notary know that the signer is who they say they are?
Notaries use credential analysis, identity proofing and multi-factor authentication to verify identities.
Credential analysis is a process that uses technology to validate the principal’s government-issued ID, confirm the security features on the ID, confirm the ID is not fraudulent and verify through the issuing source to confirm the ID is valid.
Identity proofing uses knowledge-based authentication (KBA), a method that generates vetting questions based on detailed information that only applies to one person.
Multi-factor authentication is a system that requires more than one method of authentication. It ensures that a user is who they claim to be by combining something only the user would know (a password, for example) with something they have (a cell phone, for example) and something unique to the user (a fingerprint, for example).
What ID do I need?
What ID do I need?
You need to show two forms of ID to the notary during the signing. These include passport, driver’s license or state ID, Social Security card and birth certificate. We have a detailed list of acceptable identification that we email to the client as part of our e-signing setup, especially if there are questions about ID.
What vetting questions can I expect?
What vetting questions can I expect?
This is extremely important and can present a challenge to clients. Typically, the signer has two minutes to answer four out of five questions. These questions are sourced from credit bureaus or other databases and the answers should only be known to the consumer. The question content can be from many years ago, too. For example: What year did you live at 123 Main Street, Phoenix, AZ 85001? Was it 1996, 2000 or 2002? What year VW Beetle did you own in 2005? Was it a 1968, 1972 or 1976?
The platforms are designed to allow two minutes to get the answers right in order to protect the consumer. If the consumer doesn’t correctly complete them within two minutes, the system replaces some of the questions and allows two more minutes for the consumer to answer correctly. This added level ensures that the consumer is identified correctly. If for some reason the consumer is unable to answer, they must wait 24 hours to try again with a fresh set of questions. If they’re unable to pass after three tries, they can’t use RON and will need to sign with a mobile notary. On average, 98 percent of customers pass on the first time, so typically the opt-out is only needed in very limited circumstances.
Does the client need to be a United States citizen?
Does the client need to be a United States citizen?
In most cases, yes. The source of information for the KBA or vetting questions is not always available for foreign citizens and we do not have the means to verify the identity documents for every country. We consider those situations on a case-by-case basis and must have senior underwriting approval.
Can the client sign outside of normal business hours?
Can the client sign outside of normal business hours?
Yes. That’s one of the biggest advantages of using RON. Right now, because of the COVID-19 situation, the platforms are very backed up and don’t have as much flexibility as they did in the past. Both the notary platforms we use are available 24/7 and, as more notaries are certified to perform these signings, the back-ups should be mitigated.
Is this really safe?
Is this really safe?
Yes, it is extremely safe and even more secure than a face-to-face notarization. The key is making sure you’re using the proper platforms and service providers, which we do.
Can you use RON if clients are in another country?
Can you use RON if clients are in another country?
Yes. RON is very helpful in those situations. We just closed for sellers who were in Australia and Colombia. RON made things seamless for them. It also saved them a lot of trouble. Their alternative was to physically go to the US Embassy/Consulate in Australia and Colombia to meet with an American notary. That would have involved making an appointment (not easy in normal times and, because of the virus, impossible in most countries now). That would have also cost money and required them to travel. My seller in Australia was 18 hours away from the nearest embassy. You can see how convenient and valuable the online notary process can be.
In the US, we had a seller, a truck driver, who used the service while he was on the road. It worked well for him because of how easy it was to schedule the service to meet his time constraints. We also had sellers on an island in Alaska with no access to traditional notary services take advantage of this service. In their case, they would have had to fly 500 miles to meet with a notary in person.
How do you order a RON signing?
How do you order a RON signing?
Simply let your escrow officer know and they will make all the arrangements. Given our current circumstances, we have a conversation with most clients once escrow is opened so we can have the documents completed prior to closing.
What computer / internet / technical things do I need?
What computer / internet / technical things do I need?
You need a good connection to the internet, an internal camera or external webcam, and a microphone. We have an overview of what the clients need that we send to the clients. The platform companies will assist the client with their technical questions as well.
Can I be a part of the signing, too, in case my customer has questions on the documents?
Can I be a part of the signing, too, in case my customer has questions on the documents?
That depends on the platform. Since it is only the documents that need to be notarized that are being executed and since the customers can review them ahead of time, your presence typically isn’t needed. That said, both notary companies are working on making it easier for the agent to be present during signings. We also include the agent in the DocuSign package that we send and, of course, send the figures to the agents for review prior to any signing appointment.
How and when will I be notified by the notary?
How and when will I be notified by the notary?
It depends on the process the client selects. If the client chooses a signing appointment at a specific time and date, the notary sends the client an email once they have the documents prepared. That email lets the client know the time of the appointment. I tell the clients to expect an email 24 to 48 hours prior to the signing time.
If the client chooses a signing window, I let them know they’ll receive an email within 24 to 48 hours of the order being placed and then they can sign on when it’s convenient for them within the window of time. In either case, we call the client when we see the “ready” email to make sure they have it.
How long does the actual signing take?
How long does the actual signing take?
From the time the client clicks on the email to start the process to the end of the signing typically takes 20 to 30 minutes. Many of mine have taken less than 15 minutes. Remember, we’re only talking about a few documents that need to be notarized.
What are some of the other advantages?
What are some of the other advantages?
Right now, social distancing might be the most important advantage. This will also apply after the pandemic for people who’d rather stay home or need to because of kids, for example.
RON provides convenience. Clients can close anytime, anywhere. This is especially helpful for clients who are pressed for time or are traveling.
This is a less stressful experience. Clients can be at home or wherever they’re more relaxed.
Clients may be able to review documents ahead of time. Again, this takes away some of the stress.
These closings provide increased data security.
They allow for online collaboration, something we’ve all gotten more used to.
Clients can even impress their kids by doing something online that their kids haven’t.
How has COVID 19 changed the process?
How has COVID 19 changed the process?
The biggest change we’ve noticed is our clients’ openness to this process. I partly credit this to the fear of being face-to-face or having to meet with a stranger in their home; however, we are coming to realize that customer convenience is equally important. Technology in general is moving in this direction, and Stewart Title was the first in Arizona to embrace this cutting-edge technology, months ago. Even without a pandemic, this is the future of signings.
What would you say the best part of this service is?
What would you say the best part of this service is?
I don’t think it can be emphasized enough in these times the need to avoid face-to-face interaction. RON provides the perfect solution for this. It’s a convenient and secure alternative to traditional notary services. Additionally, we believe that the tool will provide a level of consumer convenience going forward that will allow us to continue to leverage this long after the pandemic concerns have lifted. Everyone who’s used it with us has been extremely happy with it. It’s easy, secure, convenient and, in these difficult times, it may even save lives.
More resources
To get a better feel for the process, we’ve put together a brief demonstration for you. You can see it here: https://drive.google.com/file/d/1Z5gIy_QbKPBDHpZ6mA9o9n2aMqQ85R_P/view
[Disclaimer] eClosing may not be available under your state’s laws and regulations. Contact your local Stewart underwriter before you proceed to issue a policy of title insurance for specific state underwriting guidelines and requirements for eClose real estate transactions. Stewart makes no express or implied warranties with regard to, and shall have no liability for, any errors or omissions or for the results of the use of such material. Do not assume this information is error-free. It is not intended to direct your closing practices or change the provisions of Stewart’s underwriting agreements. This is for informational/instructional purposes only and does not constitute the giving of legal advice or establish an attorney-client relationship.