ALTA Weighs in on Electronic Notarization Statutes

By admin

As a leading provider in NY and PA title insurance, World Wide Land Transfer pays close attention to technological developments that affect real estate closings in the area. The development of remote electronic notarizations or E-Signing has been talked about for a long time. But for this technology to be a value creator instead of a disruptor, title insurance companies and settlement agents must have assurance that electronic notarizations will receive the same treatment as traditional notarizations across all counties and jurisdictions.

That’s why ALTA, the trade association representing title insurance companies weighed in on the subject.

ALTA’s Suggested Notarization Statues

“The title insurance and settlement industry seeks assurance that a remotely electronically notarized document will receive the same legal certainty, and provide effective constructive notice, under state law as a traditional, wet-signed, face-to-face, personal appearance notarization,” said Michelle Korsmo, ALTA’s chief executive officer.

ALTA recently sent a letter to the National Association of Secretaries of State in an effort to “promote the understanding of remote electronic notarizations” and improve to the real estate closing process. ALTA named eight elements it believes should be included in remote electronic notarization statutes.

• Adequate safeguards to protect the public and the parties relying on the notary from fraud.
• Proven methods of authenticating identity of the signer through a multi-factor identification process;
• Confidence that a remotely electronically notarized document is recordable in the local land records, and that once recorded will serve as effective constructive notice upon which the public can rely;
• A determination of whether the state will recognize remote notarial acts performed by out-of-state notaries;
• Require an indication on the notarized document to specify how the signer appeared before the notary;
• Tamper-evident technology is used to assure the integrity of a remotely electronically notarized document;
• Require the retention of records for a remote electronic notary for a period of at least seven years
• Clarity and consistency within statutes that require the use of notaries and witnesses to give guidance as to the impact of remote notarization on these other processes

More to come on our views of the area and how E-Signing may change the industry in ways that are unanticipated.

Via ALTA: http://www.alta.org/news/news.cfm?20170214-ALTA-Supports-Effort-to-Improve-Real-Estate-Closing-Process

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