One of the big things that has come from social distancing, “safer at home” orders, and moving employees to remote environments is a discussion of what business really needs to be done in a face to face manner. For many industries, eSignatures have been doing the heavy lifting.
Since the turn of the millennium, when two national laws were passed to standardize the validity of an electronic signature versus a traditional one, eSignatures have become increasingly popular in both consumer and business transactions. Orders to stay at home have caused a surge in electronic business, with new legislation opening the gates for more. Online notarization, for example, was acceptable in 23 states before the pandemic, but now 19 more states have put together short-term orders allowing the practice.
For many real estate transactions, the law has been insistent on having people physically sign documents. A Memphis-based lawyer told Bloomberg Law that his, “sense is that some lawyers are simply doing this in person, even under a shelter-in-place order.” Certain closing activities still need to be done in person and real estate is struggling to find workarounds.
There has been hesitancy to move to eSignatures because of authentication issues, but also because it would be a move away from the way things have always been done. It may take a pandemic for people to see that the process can run smoothly without being in the same physical space, and to adopt this sort of model going forward. Courts have been strict about requiring signatures in real estate transactions though, so change will have to come from them to get lawyers to follow suit.
Anyone with access to a given email account would be able to eSign a document, so shared accounts do pose a particular problem, but this would be the time to figure out how adding authentication layers such as multi-factor security could resolve lingering issues like this.
It’s important to examine these processes because real estate transactions continue to occur during the pandemic. They remain a vital part of the economy and given the levels of interest rates, refinancing will remain an attractive option. Recorders have been deemed an essential part of the workforce by CISA and are making sure these transactions run smoothly.
Extract works closely with recorders offices to index and redact the documents they receive. Whether in the office or at home, we empower local governments to spend their time on tasks more important than manual data entry or redaction. We’re happy to see that their essential work can still be completed and that local governments are still serving their communities in such an effective way.
If you’re interested in learning more about our workflow automation tools, please reach out today.
About the Author: Chris Mack
Chris is a Marketing Manager at Extract with experience in product development, data analysis, and both traditional and digital marketing. Chris received his bachelor’s degree in English from Bucknell University and has an MBA from the University of Notre Dame. A passionate marketer, Chris strives to make complex ideas more accessible to those around him in a compelling way.