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Even if you’re a seasoned investor, real estate closings can be stressful and time-intensive. Collecting all the right documents, reviewing legal paperwork, and tying up every last detail of the transaction isn’t easy.
Fortunately, technology is making this step faster and easier than ever before. Here’s a breakdown of the ways that modern technology is streamlining the real estate closing process in 2024.
How does technology streamline real estate closings?
Closing day is often tedious and complex. Technology can keep everything organized and reduce the risk of human error. Here are some of the most significant ways technology is changing real estate closings.
Preparing and Transporting Paperwork
Real estate transactions come with a mountain of paperwork. Printing out each document and transporting it by hand isn’t just exhausting — it also leaves more room for mistakes. Having everything digitized and at your fingertips ensures that all the paperwork is ready when you need it.
Enhancing Communication
From the time you receive an offer to the moment you hand over the keys, you will need to communicate with a lot of different parties — lenders, agents, attorneys, and inspectors, just to name a few.
Technology can store relevant contact information and keep a running record of your communication. Prior to the closing appointment, you can also quickly get in touch with your agent or attorney to ask questions and make sure you’re fully prepared.
Verifying Information
Verifying the identity and information provided by both parties is a crucial step during a real estate transaction. Technology helps you verify accuracy throughout the closing process and allows you to store and protect key documents.
Filling Out Documents
If you’ve ever been to a closing appointment, you know just how much paperwork there is to fill out and sign. The process can take hours, so scheduling may be complicated between buyers, sellers, attorneys, and other parties. It’s also easy to make mistakes when filling out each page by hand.
In New York, remote online notarization (RON) laws allow you to meet with a notary via a video conference and sign documents electronically. Using a remote notary makes scheduling easier as you won’t need to meet in person. Not only that, but electronic systems prevent common errors such as missing fields.
Types of Real Estate Closing Technology
Throughout the entire real estate transaction, you will likely use two main types of technology to store documents and enhance communication. Here’s a breakdown of what you can expect.
Online Platform to Store Paperwork
The most common form of real estate technology is a secure online platform that handles document organization. Each party can upload important paperwork like contracts and reports. When documents are uploaded, the platform may also send out email alerts to keep everyone in the loop.
In some cases, these online platforms may integrate with blockchain technology to facilitate digital transactions. So rather than carrying a cashier’s check in the exact amount due at the closing appointment, you can use the secure network to transfer money electronically.
Digital Conference for the Closing Day
To make scheduling easier — especially for transactions taking place over a long distance — you may be able to hop into a digital conference for closing day. A remote online notary will verify your identity and walk you through the process of reviewing and signing each document through a video call.
Technology Is Changing Real Estate
In 2024, technology is impacting almost every area of our lives, and property transactions are no different. While digital real estate management systems can make the process easier than ever before, it’s still important to work with an attorney.
The lawyers at Merlino & Gonzalez in Staten Island, New York, are committed to helping your purchase or sale go as smoothly as possible. We will provide you with the information and support you need to avoid common mistakes and navigate each step with confidence.