Electronic Vs. Remote Online Notarization
January 9, 2025
As our world becomes increasingly digital, more processes are moving toward digital technologies. For example, Rhode Island now accepts digital real estate closing. What does this mean for home buyers and sellers? This post explores what you need to know about the digital closing of real estate transactions in Rhode Island.
Rhode Island Digital Closing Real Estate
A digital closing serves the same purpose as a traditional real estate closing. The key difference is you use digital documents and signings. Instead of ink signing, you use eSignature technology, and the notary has a digital seal. It adds a layer of convenience while creating documents ready for digital applications.
Types of Digital Closings
Buyers and sellers also have options for digital closings. You can choose from in-person digital closings, remote online closings, and hybrid closings. An in-person closing is much like the traditional process where everyone meets in person. However, you use digital tools to sign documents. Remote online closings can achieve the entire process online using digital tools. With hybrid closings, some documents are digital, but you may still need ink on paper for others. Different options can serve you well, depending on the circumstances.
Digital Notary Requirements
You will need a digital notary for the closing, whether online or in person. These professionals serve the same function as traditional notaries but use digital platforms and tools. However, they must have state authorization for a digital closing in Rhode Island. They must also witness the signatures, verify identities, and review documents like a traditional notary.
Communication for Online Closings
Rhode Island law also mandates that digital closings have specific communication requirements for online notarization. The notarization must occur over a platform using real-time video and audio between the parties. These features ensure the notary can see and communicate with signers and witness the signing. The platform must also retain a video copy of the signing for at least ten years. It must also meet security requirements to facilitate remote notarization and storage.
Identification for Online Closings
There are guidelines for online notaries to identify parties to the transaction. A notary can verify a signer’s identity through personal knowledge, a credible witness, or identity proofing. Most platforms require a government ID as part of identity proofing. Knowledge-based authentication (KBA) is also common. It involves asking questions from public records to verify the signer’s identity.
While Rhode Island remote closings can be a good option, there is much to consider. For example, all parties must agree to the process. Some lenders, sellers, and buyers prefer a traditional closing. You’ll also need a title company or closing agent that supports digital closings.
Are you interested in using eClosing for your next real estate transaction? Click here to contact First National Title & Escrow. We offer secure and convenient digital closing services. Reach out now to learn more about how it works.
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