Are the days of Realtors®, buyers, sellers, an attorney, a representative from the title company and a mortgage lender sitting in a conference room for a closing numbered?
According to the American Land Title Association 2021 Digital Closing Survey, the percentage of title and settlement companies offering digital closings has jumped 228% since 2019. Obviously, the advent of the COVID-19 pandemic accelerated that growth. Nearly half (46%) of title professional respondents said they offered digital closings in 2020, compared to just 14% in 2019. Remote online notarization were a part of more than 5% of closings and more than one-third of companies offer remote online notarization.
A wide variety of closings involved remote online notarization. Most likely to utilize it were sellers only (40%), followed by cash deals (23%), refinances (17%) and then purchases (14%). And title professionals expect it to continue. Close to two-thirds (64%) said that remote online notarization closings will increase in 2021. It’s not surprising, as 52% of respondents said closing times were faster, thanks to remote online notarization and 43% said the transaction was cheaper. But companies do have to make an investment to have remote online notarization become a reality in their business, and that cost close to $30,000, according to respondents. This included estimates for software, training and equipment. So there are barriers to entry, and more than 80% of title professionals said that none of their closings were digital, while about 5% said all of their transactions were.
“The majority of closings we are seeing are still paper,” said Frank Dowd with Associates Land Transfer Company in North Wales. “We are seeing a large increase in lenders who offer hybrid closings, signing the majority of disclosures online, but nothing to be notarized. Most will still attend a closing with 12-18 documents that have to be signed in person.”
Dowd said how the closing takes place is mostly driven by the lender’s choice.
“Post-pandemic, digital closings will be the future, I believe,” said Dowd.
Topics
Member Discussion
Recent Articles
-
SREC Begins Licensee Audits for Required Continuing Education
- January 23, 2025
- 2 min. read
The SREC has started to send notification to licensees who were randomly selected in their audit of continuing education for the renewal cycle that ended May 31, 2024.
-
Inventory and Home Sales to Rise in 2025, Says NAR Chief Economist Dr. Yun
- January 22, 2025
- 4 min. read
“Overall, I see home sales rising 9% this year and another 13% next year,” he predicted. “Builders will continue to do well. But the price growth, I think, will be more muted,” noted Dr. Lawrence Yun.
-
North Huntingdon Named Safest Small Town in Pa., 14th Nationwide
- January 21, 2025
- 2 min. read
With a crime cost per capita of $86, North Huntingdon Township, located in Westmoreland County, ranked No. 14 nationwide and was the only small town/city from Pennsylvania to make the top 15.
Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.
