Q: Hi Pat, I hope you are keeping healthy and safe. One of our neighbor’s family friends just closed a house and mentioned that online deed recordings are happening; in fact, even their appraisal was over the internet. In an email exchange a week or so ago, you wrote that the county recorder’s office closed. Do you have any information about this? And will we be able to list and sell our property as planned?
A: A week ago, Monday, March 16, the Santa Clara County Recorder’s Office was “closed.” The following day, March 17, it officially opened for online recordings only. Since then, escrow officers have been preparing the files for signing, and electronically sending the escrow file out to third-party notaries. These independent notaries have been witnessing the home sellers’ and homebuyers’ signatures in person. The National Association of Realtors (NAR) Advocacy Group wrote to Washington’s political leaders on March 20, urging support of “S. 3533, the Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2020 (SECURE Notarization Act) and similar legislation to be introduced in the House.” The letter also states that “allowing for Remote Online Notarizations (RONs) will permit a notary and signer, who are in different physical locations, to safely and securely execute electronic documents using two-way audiovisual communication.” And it also points out, “Currently, 23 states have approved the use of RON technology. While a number of additional states are debating RON legislation, borrowers in more than half the country remain unable to close on a real estate transaction without an in-person signing.”
On March 23, 2020, Freddie Mac issued Bulletin 2020-5, and Fannie Mae issued Lender Letter LL-2020-04, Selling Guidance Related to COVID-19, which contains temporary guidance on appraisal requirements. Under this supervision, lenders will be allowed to use desktop appraisal and exterior-only appraisals for purchase transactions through May 17, 2020. NAR reminds the politicians of this fact: “Historically, about 37% of home sales occur during the months from March to June, averaging over 1.8 million transactions during that time.”
As of today, loan officers will qualify homebuyers. Escrow officers can close a sale. Many videographers and inspectors will conduct business at a property only if it is vacant, and they are alone. However, stagers are standing down in droves. Regardless, every buyer’s agent and seller’s agent needs to study guidelines from Realtor associations, governmental bodies, and their brokerages. Additionally, they need approval on how to “surgically” piece together business with their clients.
Questions? Are you seeking best tips and improved solutions proven to add value? You’re welcome to contact Realtor Pat Kapowich, a Certified Real Estate Brokerage Manager and career-long consumer protection advocate at 408-245-7700, or Pat@SiliconValleyBroker.com Broker License 00979413
