What is a remote closing / electronic closing?
A remote closing is a real estate sale where the parties don't meet in person to sign the closing documents. In the past, purchasing or selling a property usually involved taking the day off work, traveling to a title company, spending several hours at a closing table, and eventually completing the transaction and getting the keys. Now, you can purchase a property from your couch in your pajamas. (We won't tell)How does this work? If you are the buyer, there aren't typically any documents that need to be notarized. This means that you can electronically sign your closing package directly from your email. You wire the closing funds to the title company (which most banks will allow you to do from home as well), and then wait for the title company to confirm receipt of everybody's signed documents and funds. If you are the seller, you will usually need to physically sign and notarize the deed, and possibly a few additional documents that the underwriter wants in order to insure the property. To close on the sale of a property remotely, we will email you the documents that you need to sign, along with a UPS overnight label. You will print them out and bring them to your local bank or UPS store, where they will witness your signature and notarize the documents. The whole package is dropped off at the closest UPS branch, and then we receive them the next morning. Once all of the documents and funds are received and we are authorized to complete the closing, we will disburse everything. This includes sending a digital copy of the signed documents to all parties, wiring funds or issuing checks as appropriate, and filing the necessary documents with the county. Once the transaction is closed, the buyer can pick up the keys at their convenience. Often, there is a lockbox at the property with the keys in it and the buyer receives the code at closing. Remote closings allow real estate transactions to be completed from anywhere in the world. It gives the parties flexibility anywhere and any time that is convenient for them, as long as they meet contract deadlines.