NY Administrative Regulations (2024)
Rule/Regulation
Effective: January 10, 2024
Summary
A regulation adopted by the New York Office of Information Services clarifies that Notaries performing notarial acts on electronic records must identify a signer and use an electronic signature that complies with regulations issued by the Department of State.
AffectsTitle 9, Part 540, Section 540.7 of the New York Code of Rules and Regulations.
Changes
- Clarifies that the methods that a Notary uses to identify a signatory for a notarial act on an electronic record affecting real property must comply with the regulations issued by the New York Department of State found in 19 NYCRR Part 182.
- Clarifies that an electronic signature used by a Notary on an instrument affecting real property must be implemented in compliance with the regulations issued by the New York Department of State found in 19 NYCRR Part 182.
- Removes the words “in person” to clarify that remote electronic notarization of an instrument affecting real property is authorized.
AnalysisIn 2012, we reported a new law update on regulations to implement electronic recording of real property documents in New York. These regulations said that a Notary must perform an electronic notarial act on an electronic instrument affecting real property only if the signatory appeared in person before the Notary. In addition, the regulations said that a Notary must identify the signatory and use an electronic signature “as prescribed by New York state law.” At the time, only “in-person electronic notarization” (IPEN) existed in New York. Over a decade later, remote notarial acts are now authorized in New York and the New York Department of State has adopted regulations to implement them. Thus, the regulations in 9 NYCRR 540.7 needed to be revised to reflect the new statutes and regulations and remove “any potential confusion between ESRA's requirements and the new electronic notary requirements, as individuals or businesses may incorrectly believe that ‘in person’ would specifically prohibit remote electronic notarization for these documents” (Proposed Regulation, “Regulatory Impact Statement” issued September 13, 2023).
Read the adopted administrative regulations.