Sometimes referred to as a notary signing agent (NSA), or simply a closing agent, a closing notary is trained and trusted to present the documents related to mortgage and real estate transactions. Given the complexity of these document packages, closing notaries must pay especially careful attention to details and prevent sign-off errors.
What Do Signing Agents Do?
All notaries have an important role in preventing fraud, as they check the identification of signatories, and witness sign-off on a wide range of documents. Closing notaries, (aka signing agents), perform these acts, but take on the added responsibility of actually presenting and explaining the document packages used at the closing of real estate and loan transactions, ensuring that each document in the package is properly signed:
A closing notary, also called a notary signing agent, is a notary public specifically trained to analyze the documents involved in a real estate or mortgage transaction. Most states require a closing notary to be present when a mortgage lender and a borrower complete a transaction. Closing notaries typically start their careers as notaries public and then complete all the necessary educational and certification requirements that give them the expertise and legal right to handle real estate and mortgage transactions. A closing notary’s signature on an official real estate or mortgage document represents the assurance that no fraudulent acts were committed during the course of the deal. Once the closing notary gives their signature, the respective documents can then be accepted by local officials in charge of recording the transaction.
As Indeed explains, signing agents may be physically present at closings, or, depending on state protocols, may work remotely, or in a hybrid manner. State protocols related to signing agents vary, but typically, closing agents are able to work in these three ways:
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In-person e-notarization: The parties involved in the transaction meet in person to have their identities verified by the notary and all the documents are then signed digitally.
- Remote online notarization: It’s available in most states and gives the closing notary permission to verify the parties’ identities remotely and watch them sign virtually.
- Hybrid method: It’s typically the most widely-used out of the three and consists of all parties involved meeting in person, having their identities verified by the closing notary and signing the most important documents in pen, while the rest of the paperwork is then signed digitally.
At Forbes, Garrett Andrews underscores that it is important for NSA’s to pay attention to state specific guidelines and restrictions. Notaries seeking training to take on the role of signing agent may find information at Udemy, which offers an online preparatory and certificate program. Since signing agents handle financial information, the mortgage, title and real estate businesses that contract with them typically conduct screening and background checks prior to engagement. Among the most important qualifications for becoming a closing agent are attention to detail, integrity and flexibility:
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Attention to detail: Closing notaries often need to verify complex documents and notarize very valuable transactions, with any minor mistake potentially affecting the integrity of an entire transaction, as well as the closing notary’s reputation. To make sure they don’t find themselves in such situations, closing notaries need continuous attention to detail.
- Integrity: The main role of a closing notary is to ensure the integrity of real estate and mortgage transactions. To do this effectively, they also need to display a high level of integrity.
- Flexibility: Although not all closing notaries need to travel extensively, they need to join the parties that complete transactions in different locations and at different times of the day.
Notary Bonds and Professional Liability Insurance Explained
Given the important, public nature of their duties, many states require notaries, including closing agents, to obtain a specific type of surety bond, referred to as a notary bond, before they can begin working. Essentially, a notary bond serves as a protection for clients, guaranteeing duties will be fulfilled in accordance with all regulations, while wrongdoing is avoided. A failure on the part of the notary can result in a claim being made against the notary bond. Colonial Surety Company provides more information about notary bonds, and makes it quick and easy for notaries in every state to quote and obtain required notary bonds, ensuring compliance with state directives.
To protect themselves personally, notaries working as closing agents should also have a type of professional liability insurance, which is often referred to as Errors and Omissions Insurance, or simply E&O. Unlike a notary bond, which is a protection for clients, E&O Insurance which is the only coverage that protects notaries themselves in the event mistakes and oversights result in legal action. Even if nothing has been done wrong, the cost of defense against an allegation can be overwhelming. Since closing agents are ultimately responsible for numerous, dense and lengthy documents, which must be accurately signed, often in tight timelines, it is best practice to have E&O insurance.
With Colonial Surety Company at your fingertips, closing agents can quickly get peace of mind, competitive, direct pricing, and excellent service—plus the convenience of bonds and insurance in one place. Even more, because Cyber Liability Insurance is now an essential business protection, Colonial Surety is pleased to include it in our handy Notary Signing Agent packages at no extra cost. Just choose the best option for your work, obtain a quote, enter payment and then download your bond and insurance coverages. Do it all in minutes today, and see for yourself how efficient and affordable it is to be both compliant and protected.
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Founded in 1930, Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business in every U.S. state and territory. Our knowledgeable, New Jersey-based service team is here to help: 800-221-3662.