As of January 1, 2024, 44 states – that’s 88 percent of the United States – have enacted some form of Remote Online Notarization (RON) legislation. The most recent state to follow suit is California – the most populous state in the country – which currently allows RON to take place by notaries commissioned outside of the state but warrants several years to build the necessary infrastructure and regulatory framework for onboarding notaries and RON platforms within the state. Massachusetts law makers are also working to implement RON in the near future.
RON legislation allows signers to appear virtually before a notary using two-way, audio-visual conferencing technology instead of requiring the signers to appear in-person before a notary. Although RON laws were introduced almost 20 years ago, adoption has rapidly increased in recent years, giving more Americans the opportunity to enjoy the convenience of a fully digital closing. This blog will briefly address the benefits RON provides and where it is permitted. We’ll also review security measures in place to protect buyers, sellers and industry professionals participating in eClosings from fraud.
BENEFITS
RON legislation offers many benefits, including:
- Safety. RON gained rapid momentum during the COVID-19 pandemic as a way to protect public health. It gave people the ability to access a notary without requiring them to be in the same physical location, avoiding any possibility of coronavirus transmission.
- Convenience. Because you don’t have to meet a notary in person, RON saves travel time and transportation costs.
- Accessibility. RON makes it easier for more people to access a notary, especially the elderly, disabled or homebound. It also helps accommodate individuals who do not feel comfortable having a mobile notary come into their home, and those who are traveling out of the area or have other challenges meeting a notary in person.
- Efficiency. Utilizing digital signatures and documents significantly reduces paperwork and the time it takes to process documentation.
- Ease of use. RON platforms allow signers to use their personal computer or tablet to access a secure web portal that connects them with a RON notary. A few platforms also offer mobile-friendly options, although documents can be difficult to read on a screen this small.
WHERE IS RON PERMITTED?
You can find out if RON is permitted in your state by visiting our Digital Closing page. Scroll down to our Remote Online Notarization Map and click on your state.
SECURITY MEASURES
While RON laws differ by state, all incorporate security measures designed to protect all parties involved and produce a clear audit trail.
- RON Requirements
- Most RON state laws require the Secretary of State to establish the rules for eligibility of a notary and a platform provider to operate in that specific state. In general, RON notaries must be trained and credentialed in RON. In some states, they must also be bonded and insured.
- Most RON state laws require the Secretary of State to establish the rules for eligibility of a notary and a platform provider to operate in that specific state. In general, RON notaries must be trained and credentialed in RON. In some states, they must also be bonded and insured.
- Identity Authentication
- Government-issued identification: Traditional notarizations require signers to present a valid, government-issued form of identification (ID), such as a state ID, driver’s license or passport. A RON platform generally requires additional identity verification tools or technology to authenticate a remote document signer, such as:
- Credential analysis: the information and security elements on a government-issued photo ID are validated, often with the use of a third-party software or vendor support.
- Knowledge-based authentication (KBA): a method of authenticating a signer’s identity by asking the user personalized questions that are difficult for someone other than the signer to answer quickly and correctly.
- Government-issued identification: Traditional notarizations require signers to present a valid, government-issued form of identification (ID), such as a state ID, driver’s license or passport. A RON platform generally requires additional identity verification tools or technology to authenticate a remote document signer, such as:
- Informed Consent
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- The RON notary must obtain consent from the signer before a RON transaction can proceed.
- Signers must establish their digital signature and acknowledge that it is made voluntarily.
- Documentation
- RON notarial acts must be recorded in audiovisual format and logged in a secure electronic journal.
- Recordings must clearly show and confirm the identity of all participants, identify the notarial act being performed and capture the signers providing consent.
- The recording must be made available to all parties involved in the transaction. It may also be shared with others under certain conditions.
- The recording must be maintained by the RON notary (or a third-party vendor on their behalf) for the required number of years provided by state law.
OTHER FACTORS TO CONSIDER
When deciding whether a RON is a good option for you, there are other important factors to consider. These include:
- Cyber hygiene. Even the best security software may not completely protect individuals from cyber threats. Practicing good cyber hygiene is always your first and most important line of defense. Learning to spot signs of seller impersonation fraud or attempted wire fraud is equally important for buyers, sellers and real estate professionals.
- Compliance. It’s important to choose a RON platform that satisfies your state’s specific laws and requirements. Many states provide a list of RON platforms that are approved for use by a notary public certified to conduct a remote online notarization. Other states, however, place the onus on the notary public to confirm that the RON platform they use meets minimum standard requirements set forth by state law.
- Privacy. When considering which RON platform to use, do your research. Privacy risks can be raised when using third-party software. Make sure to ask whether the platform you wish to use has a secure and reliable environment to maintain the integrity of sensitive data.
As RON legislation continues to gain traction, it may only be a matter of time before digital real estate closings come to all 50 states. Learning more about RON and eClosings can help you decide if these options are right for you. And when you’re ready to buy or sell real property, either remotely or in-person, Old Republic Title will be here to help. We have the knowledge, tools and resources to close your transaction and protect your investment for years to come. For more information, contact your local Old Republic Title representative.