Virtual Closings due to COVID-19

05/29/20

Virtual closings are now the norm and will most likley be the preferred method of real estate closings for the near future. With technology reaching new heights, any real estate transaction can now be done remotely. In addition to creating a safe way to complete transactions, virtual closings also save people time and money.

Many states already have a virtual closing process in which agreements are sent by email or fax and all documents are signed without a notary being physically present. In New York, recently passed regulations clarify how a notary can properly witness a signature and not be in the same place as the signatory. https://www.dos.ny.gov/licensing/notary/DOS_COVID19_RemoteNotaryGuidance.pdf. If not already permanent, the virtual closing process will become a standard procedure in New York as we strive for safer ways to conduct business and avoid person-to-person contact whenever possible.

With various online video systems, such as Zoom, Google Meet and many others, parties can still work together face-to-face and share documents while being safely situated in different locations from one another. I believe this process will also allow more transactions to take place and resolve disputes.

Phone calls and emails alone are not always the best way to resolve disagreements - I have found that seeing someone face-to-face (albeit through a computer screen) creates a more advantageous atmosphere for dispute resolution in all transactions, not only in the real estate world.  

Lastly, securing certified funds and bank checks will now go the way of the dinosaur. Wiring of funds is the best and fastest way to transfer money. The funds are immediately received and become available instantaneously. This is even more critical when handling multiple deals and multiple transactions at the same time in which funds from one deal are required for a subsequent transaction.

As a result, closings may never return to the traditional sit-down at a table with all parties attending. You should be ready to sit at your computer in order to “close” the deal.