Notary services aren’t really something people think about until they need it. But those needing the service — mainly to complete a real estate transaction — faced a complication in the COVID-19 era.
Notaries are the official witness to a document signing. They must pass a training course and an examination administered by the secretary of state.
But, California law only allows notaries to witness signatures in person. This is difficult in this time of social distancing and all but essential businesses closed.
As you might expect, the situation had home buyers, title companies, lenders, and builders scrambling for a solution.
Online Notary Now Available
Brent Evans at Old Republic Title in Fresno did the research and, in collaboration with Granville Homes President and CEO Darius Assemi, presented a potential fix to Fresno County Assessor-Recorder Paul Dictos.
The workaround is in a section of the California Civil Code allowing recognition of documents notarized out-of-state.
“This is good news for our families and for the construction industry that fuels our local communities,” Dictos said. “(Now) we can accommodate the people that are staying home (like) the elderly that cannot get out, but are in the process of closing a real estate deal or refinancing their mortgages.”
While online notarization isn’t allowed for every type of home loan, it will be available for the majority of loans, said Assemi, who is the publisher of GV Wire.
“As we are sheltering in place, we need homeowners to be able to sign documents from the safety of their home,” Assemi said. “I’m disappointed in our state, the center of technology, for not allowing remote online notary” without the workaround.
Industry groups and locals also reached out to state Sen. Melissa Hurtado (D-Sanger), who supports moving to online notaries.
“My number one priority is to fight for our Valley and under the current statewide shelter in place order, our region is disproportionately limited in how we can use notaries. While the current statute provides some flexibility, I will continue to work with the secretary of state and local leaders to pursue other options like online notary services,” Hurtado said.
Many Groups Support Online Notary Service
The National Notary Association, an industry group, has worked with state governments for years to transition to online notary services.
“Using remote online notarization implements the best and most ideal form of social distancing possible,” NNA Vice President of Government Affairs Bill Anderson said. “It also ensures that the public can execute the most important types of documents that require notarization during this time — powers of attorney, mortgages, property deeds, healthcare directives, and trusts and other estate documents.”
In 2016, Fannie Mae and Freddie Mac announced their support of online notarization systems, citing “the opportunity to provide a more flexible and convenient borrower experience, while improving the assurance, authentication, security, and documentation of notarial acts.”
Fourteen states already allow remote online notary services; another 13 allowed it through emergency orders because of COVID-19. In 2019, Assembly Bill 199, which would authorize remote online notarizations, passed the Assembly Committee on Business and Professions with unanimous support. But the bill died this past January.
California Secretary of State Alex Padilla showed support for online notaries in correspondence with the NNA and published on the California Land Title Association webpage.
“California Law does not currently provide the authority for California Notaries Public to perform a remote online notarization. The personal appearance of the document signer is required before the notary public. However, California citizens who wish to have their documents notarized remotely can obtain notarial services in another state that currently provides remote online notarization,” Padilla said.
“We are ready to roll and meet the needs of the people and the industry.” — Fresno County Assessor-Recorder Paul Dictos
Fresno County and Others Now Participating in Online Notary
Dictos said that not every California county is accepting online notaries for document signature verification.
Fresno participates in a consortium of about 25 counties — mostly small to mid-size — to administer online duties, known as the California Electronic Recording Transaction Network Authority (CeRTNA).
When emergency declarations started at the state and local level, Dictos closed his public counters in favor of more online services. Notarization is one more to add to the list.
“We are ready to roll and meet the needs of the people and the industry,” Dictos said.
[covid-19-tracker]
Paul Dictos
April 7, 2020 at 2:03 pm
As a result of COVID-19 on March 18, 2020, we closed our physical offices at 2281 Tulare Street. This action was necessary to protect our staff and the public. But because we have prepared, our qualified staff is able to continue our core functions via teleworking. I encourage you to use our websites below and/or call us: For Assessor 559-600-3534- For Recorder 559-600-3476 (Vitals),and 559-600-3471(Recorded Documents).
For Assessor – https://www.co.fresno.ca.us/departments/assessor
For Recorder – https://www.co.fresno.ca.us/departments/recorder
Ross Borba, Jr.
April 8, 2020 at 11:15 am
How does this protect against fraudulent real estate transfers and loans, without the real owner’s knowledge until it’s too late? All the perpitrator has to do is draw up the documents (Grant Deed or Deed of Trust), forge the actual owner’s signature to it/them, have their fraudulent signature(s) notarized in this way then record the bogus documents. Presto … new owner or borrower, and the true owner doesn’t become aware of the hoax until they need to sell their property or use it to secure payment of a new loan. Then, it’s too late!
Paul Dictos
April 8, 2020 at 1:40 pm
Ross, let me explain how this this works:
“A remote online notary is a legally commissioned notary public who is authorized to conduct notarizations over the internet via digital tools and a live audio video call. Specific details will vary based on the platform that the notary utilizes. The name “remote online notary” is derived from the fact that the notary serves the customer remotely over the internet. While California does not currently allow notaries to perform remote online notarizations several other states do allow this type of notarization.”
Currently 26 states have this service. California is in the process of doing the same. In the meantime Cal Civil Code section 1189(b) provides that any certificate of acknowledgment taken in another place shall be sufficient in this state. Please call me
Kyle Eisneberg
April 20, 2020 at 6:54 pm
This is such a strange time to have such a contentious topic brought up. That said I should note that our company offers Mobile Notary and Apostille services throughout the San Francisco bay area and we have had numerous recordable deeds that were Notarized via RON in another State get rejected at the County level across Bay Area Counties. Since California does not currently allow remote online notarization, I would advise people just be careful and utilizing Notary related services from other States.
Cheers,
Golden Gate Mobile Notary & Apostille
Ph: 415-318-0163
W: https://www.goldengatenotary.net
E: kyle@goldengatenotary.net
Matt Miller
August 27, 2020 at 9:03 am
The California League of Intendent Notaries along working with the CA SOS and legislature has tried twice to pass RON Legislation in CA and twice it has failed due to data privacy concerns as well as many others. Big tech has a lot of work to do before this technology is safe for the main stream.
The California League of Independent Notaries
W: calnotaries.org
E: info@calnotaries.org