An eClosing involves using some combination of electronic documents, electronic signatures, electronic notarization, and electronic recording.
- An electronic document is a “native digital” document, as opposed to a scanned-in image of a paper document.
- An electronic signature is a sound, symbol, or process applied by the signer to an electronic document in place of a wet-ink signature. eSignatures can take many forms, but the three most common versions are holographic (aka hand-drawn with a mouse, finger, or stylus), cursive typeface, and standard typeface.
- An electronic notarization is the process of applying the notary’s electronic signature and notarial stamp or seal to an electronic document.
- And lastly, electronic recording is the process of recording the electronic document in the county records in its original digital form without breaking the document’s tamper seal. This is different than the form of electronic recording that exists in many jurisdictions today which simply involves uploading a scanned-in image of a paper document.
An eClosing is the electronic execution of some or all real estate closing documents in a secure digital environment. eClosings allow for a more efficient and streamlined closing experience for sellers, borrowers, lenders, and third parties.
eClosings can occur in several different variations ranging from Hybrid eClosing to In-Person eClosing to Remote Online eClosing. Key documents such as the promissory note and security instrument can be printed to paper and wet-signed, while other documents are signed electronically. Our website can provide you more information on the different types of eClosings.
eClosing real estate will provide many benefits including:
- Electronic access to documents prior to the closing
- Faster closings
- Fast commission check for the real estate agent, typically
In an eClosing, whether hybrid, full or remote online, you will need an online platform to house documents electronically and to enable electronic signatures and electronic notarizations. These types of platforms are typically referred to as online collaboration platforms or digital closing platforms.
For more information on eClosing, please contact our eVolve team.