Question 1

What is a virtual closing in real estate?

Accepted Answer

Virtual closing: a real estate closing conducted remotely (the parties do not physically attend the closing). Methods: remote online notarization (RON: the notary and the signer are in different locations; the notarization is performed using audio-visual technology), mail-away closing (the closing documents are mailed or delivered to the parties for signing and returned to the closing agent), and e-closing (the documents are signed electronically using digital signatures and electronic notarization). FL: enacted the Online Notarization Act (Section 117.265) authorizing RON for FL transactions. The virtual closing: became widely adopted during the COVID-19 pandemic and has continued to grow in popularity.

Question 2

How does remote online notarization work in Florida?

Accepted Answer

FL RON: the Online Notarization Act (Section 117.265) authorizes FL notaries to perform notarizations remotely using audio-visual technology. Process: identity verification (the signer’s identity is verified through: knowledge-based authentication (KBA): personal questions based on the signer’s credit report, and credential analysis: the signer presents a government-issued ID that is verified electronically), audio-visual recording (the entire notarization session is recorded: video and audio), electronic signature (the signer applies their electronic signature to the document), and notary seal (the notary applies their electronic seal and signature). The recording: must be maintained for 10 years.

Question 3

What are the benefits and limitations of virtual closings in Florida?

Accepted Answer

Benefits: convenience (the parties can close from anywhere: no travel required), speed (documents can be signed and returned faster than in-person closings), safety (no need for in-person contact: important during health emergencies), and flexibility (parties in different locations can close simultaneously). Limitations: technology requirements (all parties must have: reliable internet, a computer with camera and microphone, and basic technical skills), not universally accepted (some lenders, title companies, and counties may not accept RON), recording fees (some FL counties charge additional fees for electronically recorded documents), and security concerns (identity verification must be robust to prevent fraud). FL: most major lenders and title companies now accept RON.

Virtual Closing

Virtual Real Estate Closings

Methods

RON Process

Benefits and Limits

Related Terms

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