Why Do Real Estate Documents Need a Notary?

 For many people, purchasing a home marks a critical turning point. It is essential to creating generational wealth in the United States and a means of achieving stability. Homebuyers are assisted in completing their purchases by specially trained notaries known as Loan Signing Agents or Notary Signing Agents who walk them through the real estate documents that need to be signed and notarized.

In order to transfer ownership of the property from one owner to another, several documents are essential. In real estate transactions, notaries are essential. Here is an explanation of why a notary is required, who can notarize real estate documents, and what can occur if the documentation is incorrectly filled out.

The Notary's Function: 

• Serve as an unbiased observer of a transaction
• Check the identity of the signer.
• The taking of oaths
• Take acknowledging legal documents—like real estate deeds—into consideration.
• Undertake additional certification-related tasks outlined by state law

Several significant loan documents that are signed and notarized by a notary signing agent at real estate closing are kept on file in the land records system. These legal documents are referred regarded as "recorded devices" by certain people. Some of these records need to be notarized before being recorded to guarantee their legality.

Sadly, some criminals create and record fake deeds in an effort to steal genuine property. These con artists either compel a dishonest notary to participate or impersonate a notary's seal to deceive the recording jurisdiction. The notarization of a document aids in the prevention of fraud, identity theft in the workplace, and other offences.

Who is qualified to notarize real estate papers?

The laws governing real estate transactions are set by each state. Some states demand the presence of an attorney, cap the notary fee, demand extra licenses, or restrict who can handle particular loan products.

Title or Closing Agent - Notarizing real estate documents in some places calls for extra qualifications like a title insurance license or closing agent license.

Real estate attorneys - In some places, the closing of real property must be attended by or involve an attorney admitted to the bar.

Notary Signing Agents/Loan Signing Agents- Loan signing agents that are also notaries Commissioned notaries are required to submit annual background checks, pass a Signing Professionals Workgroup exam, and upgrade their E&O insurance in order to prefer loan signings. In order for buyers and sellers to close at times and locations that suit them best, title firms, lenders, and real estate attorneys frequently enter into contracts with these experts.

Which real estate papers require notarization?

Notarization is not required for all of the paperwork included in a real estate closing package. Forms and disclaimers, which can be acknowledged with the borrower's signature alone, make up the majority of the documents that are part of a typical loan acquisition.

Documents that require notarization : 

·        Deeds 

·        Deed of Trust or Mortgage 

·        Affidavits

·        Power of Attorney 

How long does it take to sign documents related to real estate?

The entire closing procedure, from accepting a buyer's offer to closing the deal, can take anything from a week to 30 days. Document signing and notarization can take as little as five minutes or as long as several hours, depending on how involved the transaction is.

What occurs if a real estate document is not properly executed?

Absolute ownership and lien rights over a property are established by the real estate documents that are signed, notarized, and registered. Professionals such as notary signing agents take great care to conduct the procedure in accordance with the regulations of their state. These documents' improper execution could cause delays, cancellations, and financial liabilities.

The recorder is likely to reject the document if the deed or other instruments are not properly notarized and comply with all recording requirements.

When a notary makes a mistake, a title company or real estate lawyer must invest time and resources to fix it, and the notary signing agent is likely to lose business. The worst-case scenario would be that the notary would be found negligent, would forfeit their commission, and would go bankrupt.