Gone are the days when all parties (Seller, Buyer, Lender, Attorneys, Closing Agents) needed to surround the closing table at a specific time for the closing of a transaction. With the advances of technology, including electronic documents, email, and so much more, transactions can be handled with a few people (or NO people) at the closing table. How is this possible?
What is RON?
The latest in technology, Remote Online Notarization (RON), gets us one step closer to closing from anywhere, at any time. Remote Online Notary (RON) is a digital notarization process that allows individuals to sign with a notary remotely using secure online platforms. It eliminates the need for physical presence, enabling parties involved in real estate transactions to complete the notarization process from the convenience of where they are. RON utilizes advanced authentication methods, encrypted communication channels, and digital audit trails to ensure the integrity and security of the notarization process.
What are the Pros of RON?
- Convenience and Efficiency:
- One of the most significant advantages of RON is the convenience it offers. With traditional notarization, all parties involved must be physically present at the same time and place. RON eliminates this requirement, allowing for remote document signing and notarization from anywhere in the world. This streamlines the process, reduces travel time and expenses, and facilitates faster transaction closures. Some RONs are available 24/7 to make it more convenient for the signor.
- Enhanced Accessibility:
- RON opens up real estate transactions to a wider range of participants. Geographical limitations and time constraints are no longer barriers, as individuals can connect with a remote notary at their convenience. This accessibility is particularly beneficial for international buyers, investors, or those living in rural areas where notary services may be limited.
- Improved Security and Fraud Prevention:
- RON platforms employ advanced security measures with non-public information to ensure the integrity of the notarization process. Robust authentication methods, encrypted communication channels, and digital audit trails are used to safeguard sensitive information and prevent fraud. These security measures provide an additional layer of protection compared to traditional notarization methods.
- Time and Cost Savings:
- By eliminating the need for physical meetings and travel, RON significantly reduces the time and costs associated with real estate transactions. Parties can complete the notarization process swiftly, without the need for coordinating schedules or arranging in-person meetings. This efficiency translates into saved time, increased productivity, and potential cost savings for all involved.
What are the Cons of RON?
The good news is that once you apply, you don’t have to apply every year unless something changes.
- Legal Limitations:
- The legality and acceptance of RON services may vary from state to state or country to country. Have questions if you can use RON for your transaction? Contact the parties handling the transaction (e.g. closing agents, lenders, or real estate agents) to determine if RON is available in your area and for your specific documents because not all documents can be signed electronically.
- Technological Requirements and Learning Curve:
- RON relies on digital platforms and electronic signatures, which may require a certain level of technological proficiency. Parties involved in real estate transactions must have access to reliable internet connectivity, compatible devices, and the necessary software. Additionally, there may be a learning curve associated with using RON platforms, especially for individuals unfamiliar with technology or digital notarization processes.
- Reduced Personal Interaction:
- The convenience of remote notarization comes at the cost of reduced personal interaction. In certain transactions, Individuals may prefer face-to-face interactions with notaries, especially when dealing with significant financial transactions. The absence of in-person communication may lead to concerns about trust, clarity, and the ability to ask immediate questions.
- Potential for Technical Glitches:
- Like any digital service, RON platforms are not immune to technical glitches or connectivity issues. These can lead to delays, frustrations, and even potential disruptions in the transaction process. It is crucial to have contingency plans in place and ensure a reliable internet connection to minimize the impact of any unforeseen technical difficulties.
By leveraging technology in real estate, RON offers convenience, efficiency, and enhanced accessibility, making it a promising solution for modernizing the traditional notary system. Need help finding a RON? Reach out to us at info@realclearsettlement.com and we will connect you with our group of local and national RON experts.