Updated 10-4-23. The use of new technology tools for notarizations has caused confusion for many people, including Notaries. There is remote online notarization (RON), which is different from in-person electronic notarization, (IPEN) temporary remote ink-signed notarizations (RIN) authorized during the COVID-19 pandemic, and permanent paper remote notarizations. And all are different from traditional, pen-and-paper notarizations.
Here’s a look at the differences between these different types of notarization. Please note that this is a general description, and specific requirements in some states may vary.
What does each type of notarization entail?
A traditional notarization is the one most Notaries are familiar with. The signer and Notary meet physically face-to-face for the Notary to notarize a handwritten signature on a paper document.
For in-person electronic notarization (IPEN), the Notary and signer still physically meet face-to-face. Instead of pen-and-paper signatures and documents, the Notary and signer use electronic signatures to sign and notarize an electronic document (often called an “electronic record” in state laws).
For a remote online notarization (RON), the Notary and signer meet remotely from different locations using audio-visual communication technology, and the notarization is typically performed remotely using electronic signatures and records.
During the COVID-19 emergency, some states authorized an alternative notarization process called Remote Ink-Signed Notarization (RIN) as an alternative to notarizing paper documents in person. During a RIN, the signer signs a paper document while communicating live with the Notary online. The signer may be required to sign a declaration under penalty of perjury stating that the document they signed and send to the Notary is the same document and attach it to the document. The document is then sent to the Notary for notarization.
Several states made paper remote notarization permanent in their Notary Public statutes.
Document requirements for each type of notarization
Each type of notarization (Traditional, IPEN, RON and RIN) has different document type requirements:
Traditional notarization requires a physical paper document with an original written signature in ink.
In-person electronic notarization requires an electronic record such as a PDF or HTML viewed on a website. The document is presented on a computer, laptop or mobile device.
Remote online notarization typically requires an electronic record as with IPEN, although some states allow paper documents to be signed and notarized using RON.
RIN requires a physical paper document with an original written signature but may also require an additional electronic copy of the document to be sent to the Notary.
Identification of the signer
Both traditional and in-person electronic notarization use the same methods for identifying signers. The signer must personally know or present satisfactory proof of identity to the Notary, typically an identification document such as a driver’s license or one or more credible witnesses who know the signer personally and can vouch for the signer’s identity, following the requirements of state Notary laws.
If not personally known to the Notary or identified by a credible witness or witnesses, remote online notarization requires signers to be identified through a combination of at least 2 identity verification methods that are tailored for the remote environment. Examples include knowledge-based authentication (KBA) where the signer must answer questions correctly about their life and credit history and credential analysis, where the signer’s ID is checked using an automated process to confirm the ID is genuine. In addition, some states allow the signer to be identified using biometrics or a public key certificate.
For a RIN, the signer must be identified through a process approved by the state. Examples may include the Notary’s personal knowledge of the signer, remote presentation of an ID document to the Notary or the oath/affirmation of a credible witness participating in the RIN.
For a paper remote notarization, the signer typically is identified using the same methods as for a RON.
Notary signature and seal
Notaries are familiar with the traditional notarization process in which the customer signs the paper document in pen and ink. The Notary then completes the certificate wording, signs the certificate with pen and ink and affixes their physical Notary seal.
For an IPEN, the customer signs the electronic document with an electronic signature — by clicking a mouse or writing the signature on a signature pad. The Notary then signs the notarial certificate with an electronic signature and affixes an electronic seal.
For a RON on an electronic document, the customer signs the electronic document with an electronic signature. The Notary then signs the notarial certificate with an electronic signature and affixes their electronic seal.
For a RIN or paper remote notarization, after communicating with the Notary online, the signer then mails, or if allowed by state law, faxes or electronically transmits the paper document to the Notary. After the Notary receives the document, the Notary performs the notarial act on the paper document, and returns it back to the signer.
Journal entry and notarial records
Depending on state laws, for traditional and IPEN notarizations the Notary completes a record of the notarization in a bound, paper journal or in some states, an electronic journal.
For remote online notarizations, usually an electronic journal entry is required, and the notarization must be recorded using audiovisual technology. The Notary must securely store the recording, along with any other journal information required by state law.
Many temporary remote ink-signed notarization laws did not require a Notary to keep notarial records, but a few required the Notary to record a journal entry and create an audio-visual recording of the notarial act. If not formally required by law, a Notary who performs a permanent paper remote notarization should keep a journal and create an audio-visual recording of the notarial act.
Closing terms in the mortgage industry
As one might expect, there are different terms used to describe the closing of a mortgage loan transaction using traditional notarization, IPEN, and RON.
Closing: The final step or last mile in a mortgage loan transaction in which closing documents are signed by the borrower, and if applicable, notarized by a Notary Public with paper documents and pen-and-ink signatures.
eClosing: An eClosing or electronic closing is a mortgage closing in which all the documents remain in digital form. They are signed, notarized and returned to the title company or lender in digital form, and nothing is printed out. An eClosing can be conducted with the borrowers and Notary in each other’s physical presence (using IPEN) or online using audiovisual technology (using RON).
Online Closing: An eClosing is also referred to as an online closing if it is conducted online without the borrower and Notary being in each other’s physical presence. The personal appearance requirement for the notarization is satisfied via the internet using audiovisual technology. Electronic documents and signatures are used to sign and notarize the electronic documents.
iClose: iClose is a web-based closing system offered by one settlement services provider. With this system, the borrower physically appears before a Notary to sign a limited power of attorney (LPOA) in paper form. The LPOA allows a representative of the title company or lender to sign the borrower’s mortgage documents. Typically, the borrower will log onto the iClose system to review and approve the loan documents using an electronic signature. The title company or lender representative signs all paper documents in the closing package, including the Mortgage or Deed of Trust, and a title company or lender Notary notarizes the representative’s signature.
Need more information about remote notarizations?
The NNA’s online Knowledge Center has additional information and resources about state remote notarization requirements.
David Thun is the Editorial Manager at the National Notary Association.
Related Articles:
Remote Notarization: What you need to know
Additional Resources:
NNA Knowledge Center: Remote Online Notary Resources