Electronic Signatures & Authorizations

A host of online tools allow REALTORS® to manage many aspects of a property transaction without touching a sheet of paper, and knowing how to use this technology is key to running a successful real estate business. Electronic signature and authorization systems technology allows buyers, sellers, lenders, title agents and other parties to a transaction to remotely review, revise and approve documents using a computer or mobile device—helping REALTORS® avoid stress-inducing bottlenecks and speeding the path to closing.

Remote Online Notarization (RON)

Remote online notarization (RON) is when documents are notarized in an electronic form where the signer uses an electronic signature and appears before the notary using online audio-video technology. Simply put, you can connect with a notary anywhere, anytime, without physically needing to meet them.

To help promote social distancing, many states issued emergency orders to allow for the temporary use of remote online notarization during the COVID-19 pandemic. The majority of U.S. states have enacted laws that permanently allow for the use of RON technology by every certified notary in the state, provided that adequate safety and cybersecurity measures are met.

In November 2018, NAR passed policy supporting this legislation as a means to help facilitate the move towards a totally electronic home closing.

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Advocacy

What is the fundamental issue?

Congress must pass the SECURE Notarization Act, which would provide for the immediate, nationwide use of remote online notarization (RON) technology.

I am a real estate professional. What does this mean for my business?

Electronic documents and signatures will produce consumer savings, including the time and funds spent on paper, postage, and storage space for disclosures and authorizations. The practice will also allow for more efficient and streamlined real estate transactions.

NAR Policy:

Supports remote online notarization (RON) legislation that:

Is technology neutral, focusing on the desired outcome of completing the notarial act rather than the technical means by which it is achieved;
Advances, enables and supports the interstate adoption and recognition of remote notarization across all U.S. states and territories; and
Protects consumers personal information in accordance with NAR’s data privacy and security policy.

Supports federal agency efforts to facilitate the adoption of remote notary and acceptance of electronic signatures and records in all federally related mortgages.

Legislative/Regulatory Status/Outlook

On February 27, 2023, the U.S. House of Representatives passed H.R. 1059, the Securing and Enabling Commerce Using Remote and Electronic (SECURE) Notarization Act of 2023. NAR is urging Senate consideration.

The current law governing electronic signatures, the "Electronic Signatures in Global and National Commerce" or "E-SIGN" Act, became effective for real estate transactions on October 1, 2000. The law allows use of electronic signatures, disclosures, and authorizations to replace paper versions. The law does not affect the disclosures or parties' rights or responsibilities. It requires no particular technology, but all parties must agree on the method for electronically authenticating the contracts or documents.

The SECURE Notarization Act would update federal law and provide for the immediate, nationwide use of remote online notarization technology. The Act would also set minimum consumer protection standards without preempting unique state notarial laws for in person or remote notarization. By design, the SECURE Notarization Act works in tandem with the Uniform Law Commission’s Revised Uniform Law on Notarial Acts 2018 to provide a framework for the use of remote notarization, much like the E-SIGN Act and Uniform Electronic Transaction Act (UETA) that allow for use of electronic signatures at both the state and federal levels.