Notary signing agents in real estate
Quick insights
- A notary signing agent is a certified notary who helps finalize real estate documents during the closing process.
- Key responsibilities include verifying identities, witnessing signatures and ensuring loan documents are completed accurately.
- Notary signing agents cannot provide legal or financial advice and must remain impartial throughout the real estate transaction.
When buying a home, there can be a lot of homebuying jargon to sort through. For example, what’s the difference between a notary and a notary signing agent? They might sound similar, but these two roles are quite distinct. Let’s clear up what a notary signing agent, also known as a loan signing agent, really is.
What is a notary signing agent?
A notary is an impartial witness authorized by the state to perform certain legal functions, including the verification of identities, administration of oaths and certification of documents. Their primary purpose is to help prevent fraud and ensure that legal documents are executed properly.
A notary signing agent, or loan signing agent, is a specialized notary who is trained and certified to handle and notarize loan documents. While they have all the skills and authority of a traditional notary, notary signing agents bring an extra layer of expertise to the table when it comes to handling loan-related paperwork.
Not every real estate transaction needs a notary signing agent. A regular notary could authenticate legal documents without handling the loan documents. Notary signing agents, however, can handle both responsibilities.
What does a notary signing agent do?
Their role is to ensure documents are handled accurately, securely and in compliance with legal requirements during the closing process. Some of a notary signing agent’s primary responsibilities include:
- Verifying the identity of all parties involved: A notary signing agent confirms that individuals signing the documents (the homebuyer or seller) are who they claim to be. This helps prevent fraud and protects everyone involved in the transaction.
- Explaining the signing process (not legal advice): The agent may walk borrowers through the general purpose of each document, so they understand what they’re signing, while not providing legal or financial advice.
- Witnessing the signing of loan documents: A notary signing agent oversees the signing of essential mortgage documents, including the promissory note, mortgage or deed of trust, to ensure everything is signed willingly and correctly.
- Reviewing documents for accuracy and completion: The agent checks that all required loan documents are present, correct and complete—from names and figures to signatures, dates and initials.
- Ensuring proper notarization requirements are met: The notary signing agent confirms that each document follows state-specific notarization rules, including the correct use of seals, stamps and notarial certificates.
- Coordinating with mortgage lenders, title companies or escrow officers: The agent often works with multiple parties to make sure documents are signed and returned on time. This work may help to avoid delays in closing.
- Returning completed documents promptly: After the signing, the agent ensures documents are delivered to the appropriate party quickly and securely, so the transaction can proceed.
- Notarizing and helping finalize the transaction: The notary signing agent will finally notarize the documents as the real estate transaction moves toward closing.
What notary signing agents can’t do
While a notary signing agent plays a major role in real estate closings, they aren’t legally allowed to do certain things, such as:
- Provide legal advice: A notary signing agent cannot explain legal terms, interpret documents or advise whether a borrower should sign. Doing so could be considered unauthorized practice of law.
- Explain loan terms or answer detailed questions about the mortgage: While they can identify documents and describe their general purpose, a notary signing agent cannot answer specific questions about mortgage interest rates, fees or loan terms. Borrowers should direct those questions to their mortgage lender or loan officer.
- Draft or prepare legal documents: A notary signing agent cannot create, edit or complete legal documents on behalf of a signer unless they are also a licensed attorney.
- Offer personal or financial advice: A notary signing agent must remain impartial. They cannot give opinions about a transaction or recommend action.
- Act in transactions where they have a conflict of interest: A signing agent must be neutral. They cannot notarize documents if they are personally involved in the transaction or could benefit from it.
- Alter or complete documents for signers: A notary signing agent cannot fill in missing information or make changes to documents. Their role is to witness and notarize, not to modify paperwork.
How to find a notary signing agent
Locating a reliable notary signing agent is an important step in any real estate transaction. Here are some tips and considerations for finding a notary signing agent.
Traditional in-person notary signing agents
There are a few places you could source an in-person notary agent. In all cases, there will likely be costs associated with hiring a notary signing agent. These costs may vary depending on the services required and other specifics of your transaction.
- Banks and credit unions: Many financial institutions offer notary services, including notary signing agents, to their customers. It might be worth checking with your bank or credit union to see if they can provide this service or recommend someone who can.
- Real estate or title companies: These businesses often work closely with notary signing agents and could possibly point you in the direction of a reliable one. Reaching out to your real estate agent or title company might provide you with some worthwhile recommendations.
- Online directories: There are many notary signing agents advertising their services online. Taking a moment to read their reviews and checking their credentials beforehand can help connect you with a notary signing agent suitable for your transaction.
Remote online notarization
Remote online notarization (RON) is an alternative to traditional in-person notarization, especially after increased remote work and digital transactions. With RON, you can connect with a notary signing agent through a secure video conference, allowing you to complete the notarization process remotely. Here are a few helpful tips for finding the right RON provider:
- Research: Similar to searching for notary signing agents online, reading reviews and doing your due diligence can help connect you with a reliable notary signing agent.
- Verify state authorization: It helps to double-check that the RON provider is authorized to perform remote online notarizations in your state, as regulations can vary.
- Check their credentials: Confirming that the RON provider employs notary signing agents with the appropriate training and certification to handle your specific real estate transaction can help reduce potential issues.
The RON process may vary by lender.
In summary
In short, a notary signing agent in real estate is a specialized notary who is certified to handle mortgage documents in real estate transactions. Also called a loan signing agent, this person verifies the presence and accuracy of all necessary documents. A qualified and reputable notary, be it in-person or remote, can help ensure your mortgage documents are handled effectively and responsibly. As you embark on your homebuying adventure, remember to do your research about any unfamiliar terms or consult a professional, such as a Home Lending Advisor.
