Title insurance is boring, but Allied Title & Escrow is here to decode the jargon and make it (somewhat) more interesting. This biweekly feature will explore the mundane (but very necessary!) world of title insurance while sharing interesting stories of two friends’ entrepreneurial careers.
We wanted to keep those interested in real estate updated on how the virus has affected our industry, so here is an update on all 3 states in this area.
Following recent updates regarding state shutdowns, we wanted to keep everybody informed on the effect of the mandates in each jurisdiction. Financial institutions, including banks and title companies have been deemed essential so we will continue to be able to close transactions for the foreseeable future. While we will be able to continue to conduct settlements there will certainly be challenges and changes in our policies and procedures moving forward.
In usual circumstances, to allow for eRecording, the title agent must physically scan and index documentation via a technology portal to the Clerk, and someone physically located at the Clerk’s office must be there to accept, Quality Control, and input the data into the Official Records.
It appears that in almost all local jurisdictions that the Clerk’s offices will continue to accept e-recordings even if the employees are forced to work remotely. Our title insurance underwriter has agreed to continue covering the “gap” periods from closing through recording, in the event recordings are delayed due to shutdowns.
In other good news, under Dodd Frank, “title/settlement services” are considered part of the “Financial Services” sector, making title insurance agencies “essential businesses” to remain functional in case of shutdowns/quarantines.
Regardless of this allowance, the significant challenge of physically CLOSING the transactions remains (meeting with clients face-to-face in a confined room to sign documents, touch paper, pens and potentially infect staff, agents, lenders, etc.). We are quickly adapting to the ever-changing environment by limiting closing time, parties allowed to attend closing, and we are able to send notaries to conduct closings at your home either outside on your patio or the Notary can wait outside while you sign in the comfort of your home as long as they can verify that you signed the documents.
You may also designate a Limited Power of Attorney for a representative from our Company to sign the settlement documents on your behalf. This still requires you to sign the power of attorney in the presence of a Notary, but limits your interaction to that single document.
The title insurance industry has traditionally been an overwhelmingly paper-based industry, and it is only in the recent stages of moving to paperless, digital and completely-online. Thankfully, we are, and have been since our inception, leading the charge towards technologically streamlining the entire closing process. We are set up for Remote Online Notarization (RON) through Notarize and we also offer Earnnest for the delivery of ACH Earnest Money Deposits from your phone or computer.