For buyers, sellers, and agents alike, the closing day traditionally has its share of pain points. For buyers, final packing, dealing with movers, the walk-through, accounting for kids, pets, and the countless other things that must get done can be daunting. Add to that the need to navigate traffic, go to an office, sit in a waiting room, then a conference room, and sign a stack of paperwork makes you see how a day that is supposed to be filled with happiness and excitement can be downright stressful. For the agents, closings are also exciting, but they have a lot more they could be doing and sitting in a conference room for hours at a time can drain their productivity. 

Until recently, there was simply little else that could be done to avoid the time-consuming nature of the closing. However, with recent advances in technology and changes to governmental legislation, the concept of a digital closing has brought the ability to close anytime, anywhere-- from your phone or computer*.  

So, What Exactly Is a Digital Closing?

Put simply, a digital real estate closing involves the use of highly secure digital platforms, using advanced identity verification methods, that allow the parties to a transaction to appear on video along with a notary and anyone else they might choose (like their agent) and sign their documents in that notary’s presence. 

What Are the Benefits?

1. Convenience. The ability to close anytime, anywhere gives customers and agents what they need most, time. Digital closings can significantly reduce the amount of time spent in an actual closing, allow a customer to review documents from the convenience of their own home, and allow closings to take place without a customer having to miss work. 
2. Security. Due to the robust security processes and tools which include knowledge-based authentication questions, session recording, and face-to-face interaction, the digital closing provides enhanced security and discourages would-be fraudsters.
3. Cost-Effective and Environmentally Sensitive. Time is money and digital closings can reduce the amount of time to close, avoid traffic, parking, and other expenses that might otherwise be incurred. Digital closings also save countless tons of paper and other resources making every digital closing positively impactful on our environment.
   

How Does It Work?

• The signer is provided a link from their closing agent which will provide access to a portal where the signers’ documents are tagged and ready for their review.
• At the appointed closing time or at a customer’s convenience night or day, if necessary, the customer enters the portal, reviews their documents, invites the notary who will join and verify their identification.
• A customer will answer certain questions involving data from verified sources and otherwise verify their identification.
• Once that is complete, they’ll access their documents with the notary and digitally sign the documents.
• Once signed, the documents are as legally binding as if the customer had signed them in person. 

Does The Digital Closing Exclude the Agent?

Platforms differ. For example, VirtualClose®, Anywhere Real Estate’s digital closing solution powered by Proof, puts the agent front and center in the overall digital experience. Agents are educated in the process and become a valuable source of comfort and information to customers in the lead-up to their digital signing session. The session can be coordinated so that the agent appears much the same way they would in a physical closing, but without the need to waste hours that could be better used conducting business. Agents can attend their closings from an open-house or their own offices and share the joy of buying or selling a new home as if they were right there with their customers. Customer gifts and hugs can now take place in the new home at walk-through or after rather than in a conference room.

What About the Experience?

Customer Satisfaction scores speak volumes. With satisfaction scores of 4.97 out of 5[1], it’s easy to see why digital closing transactions are gaining traction. One Florida closing agent commented, “Our customers are amazed at the technology and convenience of signing with VirtualClose®.”

Digital Closings Are the Future and The Future Is Now

As the number of digital real estate closings increase, they are sure to become the dominant way of conducting closings in our increasingly “on-demand” world. The agents that are proficient and knowledgeable about the solutions that save their customers time are sure to be leaders in the real estate industry of tomorrow.

Will you become one of those agents? The decision is up to you.

*Not available in all states, so be sure to ask your title representative about the suitability of digital closings for your customers.

[1] Proof Customer Satisfaction Score for VirtualClose®, December, 2023

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About Eric Jacobs, Esq.
Eric Jacobs, Esq., is a President at Anywhere Integrated Services. He oversees our subsidiary companies Clear Title Group, Burnet Title Illinois and Pro National Title. A lawyer that specializes in the real estate industry and with a particular passion for and interest in the digital transformation of real estate, he is a strong contributor to strategizing ways to improve the end to end real estate consumer experience.  Follow him on LinkedIn. 

This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. This material is not intended to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice.