Electronic Notarization vs. Remote Notarization

It’s important to distinguish between eNotarization and remote notarization. While they sound similar, there’s a key difference. The first allows documents to be signed and notarized digitally BUT requires the signer to be present in the same room as the notary. The latter takes that one step further and allows documents to be signed and notarized digitally and without the requirement of being in the same room, building, state, or in some cases the same country.

The Uniform Electronic Transactions Act (UETA) made it possible to use electronic signatures and storage of financial documents in digital formats in lieu of a traditional wet signature on paper. This was the first step in making eClosing and eRecording a reality. Other state and federal laws including the “full faith and credit” clause of the US Constitution, the federal ESIGN Act, and other state statutes act as the legal structure supporting electronic notarization.

All together these laws establish two key principles: 1. Notaries are authorized to electronically notarize documents with eSignatures completed in the presence of the notary (not remotely) 2. When performed in compliance with the laws of one state, a notarial act executed in that state will be recognized as valid in another state, even if those states have conflicting rules and regulations on the process.

These well established laws allowing eNotarization paired with new RON legislation is the catalyst for fully digital closings.

Source: https://www.proplogix.com/blog/remote-online-notarization-a-brief-history-and-how-its-changing-real-estate-closings/