Discover the necessary role of a Notary Signing Agent in real estate closings. Learn about ID verification, state laws, lender requirements, and ethical guidelines to ensure smooth and compliant transactions
A Notary Signing Agent in real estate closings plays a pivotal role. Their responsibilities include identification verification of signer, notarizing loan documents and ensuring that the loan package is signed and returned promptly. Accurate identity verification of signers is crucial to the closing process, and compliance with both state laws and lender-specific requirements is essential.
Here’s what real estate professionals, sellers and buyers should know about identification procedures during real estate closings.
State Laws Govern Notarization Requirements
Every state has unique laws governing a Notary Signing Agent in real estate closings and Notary identification (ID) requirements, and these must be followed rigorously during real estate closings.
- State-Specific Guidelines:
For example, California only allows Notaries to accept specific forms of ID listed in its statutes. Missouri mandates that the ID must be issued by a federal, state, or tribal government, include a photograph, signature, and physical description, and be in a language understood by the Notary. - Name Variations:
Some states allow minor discrepancies between the name on the ID and the loan documents, such as nicknames or initials, while others require an exact match. Understanding your state’s laws can prevent delays during closing.
When Lenders Request Additional ID
Some lenders or title companies may impose stricter ID requirements than those outlined by state law. For example:
- PATRIOT Act Forms:
Loan packages may include a PATRIOT Act form requiring two forms of ID, with a specific list of acceptable secondary IDs. - Current vs. Expired ID:
While a state may allow expired IDs for notarization, lenders might require a valid, unexpired ID for their documentation.
Tip: Before the closing appointment, confirm with the lender or title agency if additional ID will be required.
What to Do if the Signer Lacks Acceptable ID
If the borrower cannot provide ID that meets state or lender requirements, there are alternative options:
- Use of Credible Witnesses:
Many states allow one or more credible witnesses to vouch for the signer’s identity. However, some lenders may not accept this method, even if it complies with state laws. - Contact the Title Company:
If ID issues cannot be resolved at the closing table, reach out to the contracting company or lender for guidance. They may offer alternative solutions permissible under state law.
Ethical Guidelines for Identity Verification
The Notary Signing Agent Code of Conduct establishes clear ethical standards for verifying identity during real estate closings:
- Due Diligence: NSAs must take a high level of care when verifying signers’ identities.
- Compliance with State Law:
Only IDs authorized by state law should be accepted. Expedience should never override legal requirements. - Refusing Improper Notarization:
If the signer’s identity cannot be reasonably confirmed through proper ID or credible witnesses, the NSA must decline to notarize.
In the fast-paced world of real estate transactions, ensuring proper ID verification at closings is essential for maintaining compliance and avoiding delays. By understanding state laws, lender requirements, and ethical guidelines, Notary Signing Agents help ensure a smooth and legally sound closing process.
When you find a property you love, you need to make sure that you won’t lose your investment due to irregularities in its title. Call Title Junction, LLC at (239) 415-6574 to get the title services that can help you have a smooth real estate transaction.
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties.
Have questions? Give us a call at 239.415.6574.
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