Homebuilders are unique when it comes to approaching the closings on their properties. Fundamentally it is because they have more to lose if the deal goes south than a typical home seller, especially in an era of thinner margins and longer days on the market.
To hedge their bets, homebuilders are increasingly choosing remote online notarization (RON) closings to address multiple concerns and overcome anticipated hurdles.
Here are a few ways RON closings can make life easier for homebuilders.
Arm’s Length Transactions
It is not uncommon for homebuilders to sell their newly built homes to clients at a distance. This is especially true in states like Florida and Texas, the top two destinations for domestic migration, vacation or investment home purchases, and international buyers.
Hunting down a title company or notary in another location to manage the transaction is at best unreliable and at worst risky. RON solves the problem by conducting the closing online, so the homebuilder’s clients can easily, seamlessly and safely complete the transaction without making an extra trip and the homebuilder can investigate and ensure the reliability of the closer.
Time Is Money
Scheduling a RON closing – especially in an era when homebuilders are trying to shorten the time from contract to close – is a much more cost effective and time-responsive process than trying to schedule an in-person closing.
In addition, RON reduces the overall cost of the closing, saves builder staff time, and reduces errors. With closing documents in a digital format, it also creates a greater level of transparency and accessibility that is preferred by more tech savvy buyers.
Security
With the level of fraud afoot in the real estate market today, a homebuilder must be painstaking and exacting in all of the security measures it invokes during the course of the transaction. RON fills the bill when it comes to the extra level of security demanded in the current environment.
RON programs use multiple layers of security, such as knowledge-based authentication (KBA), biometric ID verification, tamper-evident seals, and encrypted data. Most significant, the process includes audio-visual recordings that track every aspect of the transaction digitally as a part of the permanent record of the transaction.
Notaries are trained in this modern technology and its unique requirements and can quickly halt a transaction if there are authentication issues or other aberrations in the process, providing further protection to the homebuilder.
At Closing Suite, we offer additional resources to help you grow your agency, by taking on those specialized tasks that help you focus on your greatest strengths. Contact us today to learn how we can assist you and your homebuilder clients with eClosings with RON, municipal lien searches, HOA estoppels, mortgage payoff ordering and tracking, mobile home title services and more.