SECURE Notarization Act: Expanding Online Notary Services Around the World
On Wednesday, July 27th, the House of Representatives passed the SECURE Notarization Act. With its passage, this latest bill expands the availability of remote online notarization nationwide.
With the onset of the COVID-19 pandemic, online services experienced an international surge. Furthermore, the global population readily embraced solutions that increased productivity as lockdowns trended. Backed by worldwide real estate organizations, such as the Mortgage Bankers Association, and National Association of Realtors, this Act allows for more flexible closings.
What’s in the Secure Notarization Act?
As mentioned, the SECURE Notarization Act concentrates on opening up access to remote online notarization (RON). Not only does it immediately permit nationwide RON usage, it also creates national minimum usage standards and provides certainty for the interstate recognition of these services.
The Act allows for notaries and signers to be in different physical locations when securely executing electronic documents. Notaries achieve this via a combination of technologies, including audiovisual communication and digital documentation tools.
Also, the Act “requires U.S. courts and states to recognize notarizations, including remote notarizations of electronic records and notarizations of remotely-located individuals,” according to the bill summary. With its technical requirements in mind, there are now rules regarding the creation and retention of video and audio recordings.
What Does it Mean for Realtors and Homebuyers?
The SECURE Online Notarization Act enables real estate professionals and homebuyers to safely and securely close deals. Before its passage, Realtors navigated legal ambiguities with remote transactions, particularly with national transactions. Currently, RON faces improved flexibility by cutting down on costs and commute times.
As the real estate market turned white-hot during 2021, real estate attorneys, underwriters, title companies, lenders, and Realtors were forced to reevaluate the transaction process. With national backing, the path forward feels a little clearer.
For legal guidance with Illinois residential and commercial transactions, contact the real estate attorney at Lee Scott Perres, P.C.
