The question surrounding the acceptance of electronic notary services were hampering real estate … [+]
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New York Governor Andrew Cuomo signed an executive order allowing for documents to be notarized virtually using audio-video technology, which those in the real estate industry say is a necessary step to keep business moving during the COVID-19 pandemic.
As part of the executive order, Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency, any “notarial act that is required under New York State law” is allowed to be performed using audio-video technology if the person seeking the notary’s services, if not personally known to the notary, presents valid photo ID to the notary during the video conference.
According to the executive order, the notary and the person seeking services must have direct interaction, with no pre-recorded videos of the person signing; the person must prove that they are physically in the state of New York; the person must send a legible copy of the signed document to the notary electronically on the date it’s signed, with the notary sending a copy of the document back; and the notary will later re-notarize the original signed document after receiving it, along with the electronically notarized copy, within 30 days.
Steven Matz, a founding and senior partner at Katz and Matz, PC, a real estate law firm in Manhattan, said he applauded Cuomo’s executive order. While real estate closings have been moving ahead virtually, there were questions around the acceptance of e-notary services.
“It is exactly the kind of flexibility Katz and Matz, PC has been advocating for, and an enormous step in the right direction, opening the door to ‘remote closings’ and other transactions,” Matz said. “Indeed, many business practices are evolving on a daily basis, and this is proof that Albany listens.”
Jason Haber, a broker with Warburg Realty, said the executive order would help keep real estate closings moving and allow individuals to secure loans.
“Before this executive order, notaries had to sign in person, which was nearly impossible due to the crisis,” Haber said. “This arrested many business transactions across the state. Today’s announcement is huge news and will aid in keeping transactions moving forward in New York.”