The Growth of Remote Online Notarization

Remote online notarization (RON) has become a critical tool for real estate professionals and homebuyers, enabling faster closings and reducing the need for in-person transactions. However, its expansion has brought regulatory challenges, prompting discussions about state and federal oversight.

The proposed Securing and Enabling Commerce Using Remote and Electronic Notarization (SECURE) Act aims to establish a nationwide framework for RON. Proponents argue that a uniform federal law would simplify compliance, enhance security, and create consistency across states.

State-Level Progress

Although the SECURE Act was introduced in early 2023, movement on the legislation has stalled. In the meantime, states and industry leaders have taken steps to ensure RON operates effectively.

According to William Kooper, vice president of state government affairs at the Mortgage Bankers Association, most states have implemented consistent RON laws. Currently, 45 states and Washington, D.C., allow some form of RON, with only a few outliers, such as Connecticut, which excludes real estate transactions.

While some states, like Florida and Texas, have well-established RON laws, others impose restrictions, such as requiring notaries to be physically present in the state.

Security and Regulatory Challenges

One of the primary concerns surrounding RON is fraud prevention. As fraudulent activity in real estate transactions becomes more sophisticated, industry leaders emphasize the importance of RON’s advanced security features.

RON providers use identity verification technology, forensic audits, and transaction recordings to enhance security beyond traditional paper-based notarization. These measures help deter fraud and provide additional safeguards for lenders, title companies, and homebuyers.

The Future of RON Oversight

While the absence of federal regulations initially created hurdles for RON providers, the widespread adoption of state-level laws has made compliance more manageable. Industry leaders agree that a federal framework could help standardize processes but must complement existing state regulations rather than disrupt them.

As RON adoption continues to grow, collaboration between states, industry stakeholders, and regulatory bodies will play a key role in shaping its future. Whether through federal legislation or state-driven initiatives, the goal remains the same—enhancing security, accessibility, and efficiency in real estate transactions.