Congress Working to Pass Remote Notarization Bill

[Chance Badertscher]

Due to the recent stay-at-home order from Illinois Governor J.B. Pritzker, many businesses face uncertainty. Luckily, real estate transactions in the State will continue thanks to several policies led by title companies and financial institutions. And now the United States Congress is pushing for a bill to further assist the real estate industry.

The proposed Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2020 (SECURE) would allow all notaries across the country to perform Remote Online Notarization (RON) during the current COVID-19 pandemic. RON will be valid and binding so long as the notary is physically located in the state of the signing party.

The bill was introduced by Senators Kevin Kramer (R-ND) and Mark Warner (D-VA) on March 18, 2020. SECURE is likely to be introduced to the Senate Banking Committee prior to making its way to the Senate floor. Twenty-two states have already passed similar legislation, but SECURE would allow electronic signatures and notarizations for transactions in all jurisdictions under federal law.

The State’s title companies have also implemented policies to ensure real estate transactions can continue. After originally stating that no closings could occur if a county recorder’s office closed, title companies may now file recordings electronically or via courier so long as all parties sign GAP personal undertaking.

Title companies are also offering remote and curbside closings to promote the social distancing protocol. At this time, title companies, financial institutions, law offices and real estate services are considered essential businesses. This means that the real estate industry may continue to operate during the stay-at-home order without interruption.

If you would like to learn more about the current state of the real estate industry or would like to speak about this matter, please contact me.