4 Ways IPEN Can Enhance Your Closings
By James Rogers, Esq.
As the pandemic is declared over, parties to real estate transactions have started to move back toward traditional, in-person document signings. Given the security advantages associated with remote online notarization (RON), there is a move afoot to combine those advantages with traditional, in-person signing.
Meeting this need is in-person electronic notarization (IPEN), which has been in practice for years in many states where electronic notarization is legalized. It is quite possible that there will be a shift to IPEN in the years ahead.
What is IPEN?
Quite simply, IPEN is a notarization process that combines traditional notarization with electronic technology. It allows the notary to affix an electronic signature and seal to a document using an electronic notary platform, typically on a tablet or computer. IPEN requires the physical presence of the signer before the notary public, ensuring face-to-face interaction.
By comparison, RON allows the notarization process to be conducted remotely, using audio-visual technology. Unlike IPEN, RON does not require physical presence, but instead relies on secure online platforms for document review, identification verification and electronic notarization. While RON offers convenience and flexibility for signers who are unable to be physically present, it may not be suitable for transactions that require in-person verification, physical examination of documents or when physical presence is mandated by law.
Compared to RON, IPEN offers the advantage of combining the convenience of electronic notarization with the requirement of physical presence. This aspect makes IPEN suitable for situations where a signer needs to be physically present while still benefiting from the efficiency and security of electronic notarization. Additionally, IPEN allows for real-time interaction between the signer and the notary, promoting a higher level of trust and confidence in the notarization process.
Here are 4 ways IPEN can make your closings simpler and more convenient, while ensuring that your transactions are protected against security threats and fraud:
1. Efficiency and convenience
IPEN offers convenience to signers by eliminating the need for physical paper documents and enabling the notarization process to be conducted electronically. The use of electronic platforms and tools streamlines the document review and signing process, reducing the time and effort required for document processing. IPEN allows for real-time signing and notarization, enabling immediate completion of transactions and reducing delays associated with physical document transportation.
2. Enhanced security
IPEN platforms incorporate robust security measures to protect against fraud and tampering. Electronic signatures and seals provide an additional layer of security compared to traditional ink-based notarization methods. The digital nature of IPEN allows for the implementation of encryption, authentication and audit trail features, ensuring the integrity and authenticity of notarized documents.
3. Document accessibility
Electronically notarized documents can be easily stored, shared and retrieved digitally, making them more accessible and reducing the risk of loss or damage. Digitally stored documents can be securely accessed from anywhere, anytime and by authorized parties, eliminating the need for physical storage and enhancing the efficiency of document retrieval.
4. Improved recordkeeping
IPEN platforms typically provide comprehensive audit trails and digital records of the notarization process, including timestamps, identification verification and actions performed by the notary. This facilitates efficient record-keeping and compliance with legal and regulatory requirements. The digital nature of IPEN allows for easy retention and retrieval of notarized documents, reducing the need for physical storage space and manual record maintenance.
Bridge the gap between traditional and modern closings
IPEN provides a secure and efficient notarization method by combining the advantages of electronic technology and in-person presence. It offers benefits such as increased convenience, enhanced security, document accessibility, and improved recordkeeping. While RON has its merits in certain circumstances, IPEN bridges the gap between traditional notarization and electronic processes, ensuring a reliable and effective solution for various notarization needs.
James Rogers is Vice President, Regional Underwriting Counsel for the Mountain Region of Doma Title Insurance, Inc.