For many people, the homebuying process can feel like a marathon. If this is true, then the step-by-step real estate closing process can be seen as the last few strides over the finish line.
Closing is the last stage of a real estate purchase, during which the buyer and seller agree on final transaction terms, confirm financing methods, sign final documents, and officially transfer property ownership from one party to another.
After closing, a title company or closing agent will distribute agreed-upon funds from the buyer to the seller and submit the new property deed to the local government for filing.
With so much at stake at the end of the homebuying process, nothing should be left to chance. That’s why legal verification is essential. And the notary public has long played a key role in this legal verification. Serving buyers, sellers, lenders and title companies alike, notaries validate documents, ensure authenticity, prevent fraud and generally facilitate smooth real estate closing transactions.
What Does a Notary Do in a Real Estate Closing?
If a document is to be considered valid, all signers must be exactly who they claim to be. This makes identity verification an extremely important part of the real estate closing process. A notary performs this task by collecting a valid, government-issued photo ID from each signer and ensuring that they match that signer’s appearance and identity.
After verifying their identities, the notary will generally walk signers through each document at hand, explaining it and providing guidance on how to sign it. After ensuring that all signers are acting according to their own free will and fully understand what they are agreeing to, the notary will visually witness their signatures in all the necessary places.
When all the previous steps are completed to the notary’s satisfaction, the real estate documents are ready for certification. This occurs when the notary affixes an official seal to each of the documents to signify that they are authentic, valid and legally binding.
Why Notarization Is Essential for Real Estate Transactions
Because notaries are present at the time of real estate closings, they are uniquely positioned to verify identities, explain documents and confirm voluntary signing. This does wonders to protect against coercion and false representation within the closing process, thereby preventing fraud and ensuring document legitimacy.
Although it is important to understand that notaries are generally NOT attorneys and therefore not qualified to give legal advice or guidance, notaries DO play a critical role in providing legal assurance by confirming the credibility and legitimacy of legally binding documents.
Any document can be challenged in a court of law, but challenges to documents that have been notarized through standard and genuine processes are far less likely to threaten those documents and the agreements they delineate.
Key Documents a Notary Handles in Real Estate Closings
Many of the documents presented in real estate closings require, or at least benefit from, notarization. These documents include:
- Property Deeds – Documents that transfer property ownership titles from one party to another
- Mortgage/Loan Agreements – Documents that secure financing for a real estate property
- Affidavits – Sworn statements that verify ownership information such as property status, liens and disputes
- Disclosures – Sworn statements that disclose known issues/defects with a real estate property that could negatively affect its value or the buyer’s safety
How To Choose a Qualified Real Estate Notary
To secure high-quality notary services and ensure that your closing documents are legally airtight, look for a notary who holds an official, valid and active commission at the state level. The rules and regulations that govern notarization are determined by state officials and agencies. State governments are responsible for giving notaries their commissions, and those governments might have significantly different requirements for their notaries.
Beyond a valid commission, you will want your notary of choice to have considerable experience with real estate closings and a reputation for outstanding reliability and exceptional service. Beyond the quality of services provided, you must be able to secure those services on your required terms and schedule.
Challenges Faced by Real Estate Notaries
Securing the right notary for your real estate closing is extremely important because they must be able to manage complex documentation processes while adhering to strict legal standards. Considering the important role that notaries play in the authentication and validation of documents, they are subject to stringent legal and regulatory compliance standards.
To remain viable, notaries must stay up to date on the latest in state-specific laws and industry best-practice. Failure to comply with the legal conditions can invalidate documents and result in liabilities for notaries and their clients. By maintaining rigorous standards, notaries can safeguard against fraud and prevent legal challenges to the legitimacy of real estate transactions.
The Benefits of Using a Notary in Real Estate Closings
Beyond their contributions to fraud prevention and document security, quality notaries can make transactions easier, faster and more efficient. To secure an outstanding notary for your real estate transaction, contact the experts at First Class Signing Service today.
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