The use of Remote Online Notarization (RON) was approved by the Florida State Legislature as of January 1, 2020. Remote Online Notarization, or RON, is the use of audio/visual technology to complete a notarial act when the principal is not in the same physical location as the notary public. Though RON had been implemented in many other states for several years, documents that had been notarized online remotely could not be recorded in Florida until the law was passed.
The Florida law is an exciting development and opportunity for the state; however, it does have some requirements that may limit its usefulness for foreign sellers who are abroad. This is due to the fact that Florida law requires the “authentication of identity” of those signings. In Florida, a process known as “Knowledge-Based Authentication (KBA)” has been implemented on all Florida RON platforms.
Some states, like Virginia, do allow for RON of non-US persons. However, any use of RON with notaries that are NOT from Florida still requires that the execution of the documents comply with Florida law. The most important of these compliance requirements include the authentication of the identity of the personas who are going to sign the documents. This authentication is required for RON-executed documents performed by notaries outside of Florida because other states do not use the KBA standards used in Florida to authenticate the seller’s identity. Therefore, additional authentication measures must be taken. It is imperative that in circumstances where seller document execution will occur via remote online notaries that are from states different from Florida, that the Title Insurance Underwriter and Closing Agent have approved the use of RON as well as the identity authentication process to be followed. While the use of this methodology expanded during the COVID-19 lockdowns around the world, underwriters still required case-by-case approval.
RON platforms must be approved by the specific title insurance underwriter who will be issuing the title insurance policy. Please speak to ur office about the RON platforms approved by our Title Insurance Underwriters.
Closing policies related to transactions that involve Sellers using REMOTE ONLINE NOTARIZATIONs (RON) for the execution of Seller Conveyance documents:
For transactions that will include the use of Remote Online Notarization (RON) for the execution of documents, please consider the following specific requirements for Florida and Virgina RONs.
FLORIDA RON
- For a Florida RON session, the person signing via RON must have a social security number. FOLIO must have a copy of the signer’s ID and the social security number.
- Knowledge Based Authentication (KBA): The signer should consider that their identity verification will be done through answering questions related to information linked to their social security number/credit history in 2 minutes. The signers whose identity needs to be authenticated will have only 2 attempts to correctly respond to 4 questions out of 5 presented at random by the third party provider approved by the title insurance underwriter.
VIRGINIA RON
Virginia Ron Sessions May Only Be Established When Signers Have Produced A Valid ID Authentication. Valid ID Authentications Accepted by most title insurance underwriters Include: State Issude ID such as Driving License or Passport.
Moreover, an Affidavit of Identity must be signed by one of the following persons during the VA RON session and witness the execution of the document by the client.
(1) FL attorney who personally knows signer.
(2) CPA for the seller that is handling FIRPTA issues for the transaction.
(3) Realtor for the seller that personally knows the seller through prior representation of the seller as a Realtor and has personally known the client for at least 6 months.
All fees and costs for the identity verification are paid directly by the signer.
When FOLIO is the Closing Agent and the Seller has a attorney representation, we invite attorney representatives to contact us at 786-888-6640 to coordinate any aspects related to the use of RON for document execution.
Use of RON by Buyer’s on Mortgage financed transactions and on Loan Packages
Although it is possible to execute loan packages via RON, on Florida transactions, lenders have specific policies related to this practice. Notably, most lenders require the Note and several other specific documents to be executed by wet signature. Some lenders require the original note and other documents to be in possession of the Closing Agent to fund the transaction and/or provide funding approval. Other lenders will accept digital copies of the note for funding, yet require the original note and other documents delivered post-closing.
We invite all real estate agents and buyers interested in using RON for the closing of loan packages to contact our office for more information.
Source: Mortgage Brokers Association