Thursday, April 9, 2020

Will Online (Remote) Notarizations Become the New “Norm”?

Originally published by Michael Cohen.

Italy and China have enforced strict curfews (much stricter than “shelter in place”) in recent months to “flatten the curve” of the coronavirus pandemic. As mentioned in our article “Pandemic Planning in Peril”, the signing of a Will in Texas is particularly difficult at this time since Texas has not passed a law permitting Wills to be signed by video (unlike some states). However, there are many documents (i.e., trusts, powers of attorney, deeds, etc.) that simply need to be notarized. Although banks or financial institutions are an “essential business” and they will generally notarize documents other than Wills, many (especially those of higher risk) do not want to take any risk of going to the financial institution given the present status of COVID-19 – and it is possible stricter restrictions (like Italy and China) than “shelter in place” could be implemented.

As a result, online notarization (a notarial act performed by means of two-way video conference technology that meets the standards under Texas law) could become in vogue. The Secretary of State of Texas has to authorize a notary to be an online notary. Qualifications to be an online notary include: (1) meeting the requirements to be a notary public, (2) paying an application fee and (3) electronically submitting a form to the Secretary of State.

Online notaries must:

  • keep a secure electronic record of electronic documents notarized using audio-video communication.
  • keep a recording of any video and audio conference that is the basis for satisfactory evidence of identity and notation of the type of identification presented as evidence in addition to acts normally required of notaries.
  • keep a notation in the electronic record regarding identification of the principal for the online notarial act.
  • take reasonable steps to (a) ensure the integrity, security and authenticity of online notarizations; (b) maintain a backup for the online notary’s electronic record; and (c) protect the backup record from unauthorized use.
  • keep the electronic record maintained for at least five years after the date of the transaction or proceeding.
  • keep the electronic record under the online notary’s exclusive control.
  • not permit another person to use the online notary’s electronic record.
  • notify an appropriate law enforcement agency and the Secretary of State of theft or vandalism of the online notary’s electronic record.
  • notify the Secretary of State of the loss or use of the electronic record by another person of the notary’s electronic record.

Notwithstanding the requirements set forth, online notarizations are likely to increase until the pandemic subsides.

If interested in learning more, consider attending our next free “Estate Planning Essentials” virtual workshop (on April 18, 2020) by calling us at (214) 720-0102 or sign up by clicking here. Our goal is to make it easy for you to attend from the comfort of wherever you reside.

The post WILL ONLINE (REMOTE) NOTARIZATIONS BECOME THE NEW “NORM”? appeared first on Dallas Elder Lawyer.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.



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