As an underwriter for a real estate closing, they have a lot on their plate. Their job is to evaluate and assess the risks associated with a mortgage or loan and make sure everything is in order before approving the loan. One important aspect of the closing process is the notarization of legal documents. And when it comes to notarization, having a state-specific notary can make all the difference. A state-specific notary is someone who is authorized to notarize documents within a particular state. They have passed the necessary exams and have been certified to perform notarial acts in that state. Here are some reasons why they may want to have a state-specific notary for their real estate closing(s): Compliance with State Laws: Each state has its own set of laws governing notarial acts. Having a notary who is certified in that state ensures that all documents are properly notarized in compliance with that specific state’s laws. Knowledge of Local Procedures: A state-specific notary is familiar with the local procedures and regulations, which can help to expedite the closing process. They know the specific requirements for notarizing documents in their state, which can help avoid potential mistakes or delays. Mitigate Risks: A state-specific notary can help mitigate the risks associated with a real estate closing. They can identify potential issues and help to ensure that all parties are protected. Avoid Rejections: When documents are notarized by a notary who is not certified in the state for which the property is located, then there is a high risk of rejection. This can cause delays and may even result in the need for a new closing. By having a state-specific notary, you can avoid these issues and ensure that your documents are notarized correctly. This rejection aspect has a major impact when you are looking at closings online, as many underwriters will not fund a loan on a property if the online notary is commissioned in a different state than where it is physically located. While we all know we can “cross” these physical borders virtually, by doing so it has a significant, and long-term effect on the documents which are completed. Moving the legal “venue” to that of the notary; should anything every be contested, this now moves the applicable laws for this property the state which the notary is commissioned in. And that could affect the way the underwriter moves forward should the applicant on the loan stop paying the monthly installments or declares bankruptcy. Just like with Notary Laws, every state sets their own standards and rules. We see it every day, some notaries can do copy certification, while other cannot. Some notaries can perform officiant services, while others cannot. This also falls into how debts are paid on property. Florida’s laws for collection of debts on a property, probably, are different than that of Alaska! Should this applicant stop payment on their home loan for a property in Florida, and an Alaska Notary performed the closing, now they must add in Alaska property laws into their case. This is why, while important to advertise nationally, we as RON notaries should be blanketing ads to all our local and state title agencies to ensure that the work in our state – stays in our state, for their own peace of mind and protection! In summary, having a state-specific notary for a real estate closing can help ensure compliance with state laws, expedite the closing process, mitigate risks, avoid rejections, and headaches!
Comments