Virtual real estate closings are becoming more common and convenient, especially in times of social distancing and travel restrictions. However, they also pose some challenges and risks that require careful preparation and communication. In this article, you will learn some of the best practices to ensure a smooth and secure virtual closing process for your real estate transactions.
The first step to a successful virtual closing is to select a platform that offers reliable and secure services for online document signing, verification, and recording. You should look for a platform that is compliant with the federal and state laws and regulations regarding electronic signatures, notarization, and recording. You should also check the platform's reviews, ratings, and customer support options. Some of the popular platforms for virtual real estate closings are DocuSign, Notarize, and Propy.
Choosing the right platform is crucial for a smooth virtual closing. Opt for services that are not only user-friendly but also legally compliant and secure, such as DocuSign, Notarize, and Propy. These platforms offer robust document management, electronic signatures, and notarization capabilities. It's essential to verify their adherence to legal standards and evaluate their customer service quality through reviews and ratings. Making informed decisions here sets the foundation for successful virtual real estate transactions.
Before the closing date, you should prepare and review all the documents that are required for the transaction, such as the contract, the title, the deed, the mortgage, the disclosure forms, and the closing statement. You should also make sure that you have all the necessary information and identification documents, such as your driver's license, passport, or social security number. You should verify the accuracy and completeness of the documents and ask any questions or clarifications to your agent, lender, or attorney. You should also scan and upload the documents to the platform and ensure that they are accessible and readable.
With all due respect to my hard-working title company friends, I often catch mistakes on the closing documents. They are dealing with a LOT of files, a LOT of numbers, and a LOT of different people are communicating with them. That's why I always review them BEFORE they are sent to my clients. Thousands of dollars can go the wrong way, and if you don't catch it before your client sees it, they could react very negatively. They may think you aren't paying attention to the details, or they may think you are trying to "pull a fast one on them."
Another important step to a smooth virtual closing is to test the technology that you will use for the online meeting, such as your computer, smartphone, tablet, webcam, microphone, and internet connection. You should make sure that your devices are fully charged, updated, and compatible with the platform. You should also test the audio and video quality and adjust the settings as needed. You should also have a backup plan in case of any technical issues or interruptions, such as a phone number or an email address to contact the other parties.
Communication is key to a successful virtual closing, as it helps to avoid misunderstandings, errors, and delays. You should communicate with your agent, lender, attorney, and title company throughout the process and confirm the details of the closing date, time, location, and platform. You should also confirm the amount and method of payment for the closing costs, such as wire transfer, cashier's check, or credit card. You should also verify the identity and credentials of the other parties, such as the notary or the escrow agent, and ask for their contact information.
On the closing day, you should join the online meeting at the scheduled time and follow the instructions of the platform and the notary or the escrow agent. You should review the documents carefully and sign them electronically using your mouse, finger, or stylus. You should also provide any additional information or verification that is requested, such as your photo ID or your voice confirmation. You should also receive a confirmation email or message that your documents have been signed and recorded. You should also download and save copies of the documents for your records.
I've tried to attend nearly all my clients' signing appointments when they take place physically. If it's happening virtually, you really don't have much of an excuse not to attend.
After the closing, you should celebrate your achievement and thank the other parties for their cooperation and professionalism. You should also follow up with your agent, lender, attorney, and title company to ensure that everything is completed and finalized. You should also check your bank account and your credit report to confirm that the funds have been transferred and the loan has been reported. You should also update your insurance, utilities, and address information. Finally, you should enjoy your new home or your new investment.