In today's digital age, the process of closing on a mortgage or a deed of trust has become more convenient and efficient thanks to the use of Remote Online Notarization (RON). This virtual notary method allows all necessary participants, including the borrower(s), non-borrowing title holders, witnesses, and signing agents to be present for the signing process without having to be in the same physical location. However, despite the benefits of this technology, there are certain situations where a signing may need to be re-signed or invalidated, meaning a delay in closing on a property and/or potentially negative consequences for all parties involved. In this blog post, we will explore the reasons why a closing may need to be signed again and the impact it has on the client experience and the company. The first reason why a RON may need to be resigned is if the execution of the documents is not captured on video. This means that if the video or audio is not working properly during the session, the closing may have to be redone. To avoid this, it is important that signing agents take the proper action when issues begin to arise during the closing session. In many instances, this can be fixed by simply clicking the browser refresh button. In other situations, the session may have to be restarted. If a new session is begun, it is important to start again as if it were a brand-new signing; KBA and credential analysis likely won’t have to be repeated, but all other steps like the scripted beginning of the session and displaying of the IDs should be repeated, as most sites will only retain the final video of a session and not the interrupted attempts. It is also best practice to re-perform any actions, such as the placement of any signatures, that were taken before the disruption. Another reason why a closing may need to be resigned is if necessary, participants are not present on camera for the entire duration of the signing. Necessary participants include the borrower(s), non-borrowing title holders, witnesses, and signing agents. While witnesses do not need to remain in camera for the entire signing, it is important that they are instructed to stand behind the signer on camera while witnessed documents are being signed. It is also important to verbally verify with the witness that they watched the signer affix their digital signature. If any of these individuals are not present on camera during the entire session during the times in which they are signing, the closing may have to be redone, as someone could question the validity of the closing in the future. Participants executing documents on behalf of other participant(s) is also a common reason why a closing may need to be resigned (keep in mind, this is not referencing someone with a Power of Attorney allowing them to sign on behalf of another person, but rather active participants). Bottom line, the active signer should always be in full view of the camera as their signatures are being applied. The impact of having to repeat a closing can be significant. When a company has to inform their clients that a resign must occur due to an audio/video failure causes a poor client experience. It can cause the client you are working for to incur additional costs, can put the notary at greater liability, and can delay or even invalidate a closing. This can lead to negative feedback and potentially harm yours and the reputation as a company. While there is the potential for video failure to happen that is not apparent to the notary or the clients, notaries who fail to take the appropriate action to mitigate audio/video failures when they are knowingly happening are putting themselves, their client, the signers and many other parties at risk. This is why it is crucial that signing agents take the necessary steps to ensure that the closing process goes smoothly and that all necessary participants are present on camera for the entire duration of the signing. When in doubt, start again. In conclusion, while the use of Remote Online Notarization has made the process of closing on a mortgage, a deed of trust or any other notarized document more convenient and efficient, there are certain situations where a closing may need to be performed again. These situations include the execution of the documents not being captured on video, necessary participants not being present on camera for the entire duration of the signing, participants executing documents on behalf of other participant(s), and/or documents that were signed while audio/video issues were occurring. The impact of an unrecorded closing can be significant, and it is important for Remote Notaries to take the necessary steps to ensure that the closing process goes smoothly.
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