The definition of a digital real estate closing varies depending on who you ask.
In its purest form, a digital real estate closing would be one where you have zero human oversight, interaction, and activities involved and the entire closing process from intaking a signed purchase and sale contract, holding of escrow funds, preparing the closing documents, executing the closing documents, distributing the closing funds, and recording of the conveyance and loan documents is all done digitally or electronically.
However, as of today, the term digital closing really means that the execution and recording of the conveyance and loan documents is done digitally or electronically.
There still requires a fair amount of human oversight, interaction, and activities in order to intake a signed purchase and sale contract, hold escrow funds, prepare the closing documents, and to oversee the digital execution and recording of the conveyance and loan documents.
In fact, as of this writing, when there is a mortgage loan involved, many lenders do not allow for the digital or electronic execution of loan documents.
Lawrence Advisory uses the latest technology to complete digital closings as they exist today and will be at the forefront of the pure digital real estate closing when they begin to occur.
It will be even more important to have legal oversight and guidance when we reach a pure digital real estate closing, as attorneys must ensure the digital closing is commenced and completed in accordance with the contract terms and as required by law.
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