Have you ever been in a situation where you needed something notarized in a time crunch? How about when you were out of town? Taking the time to find a notary to get a contract fully executed can be a major hassle, and could even jeopardize the timing of when a purchase of real property closes in extreme situations.  For example, a purchaser of property that is out of town on business would potentially have to work a closing around a busy travel schedule pending the purchaser’s ability to have a document notarized in conformance with Texas law.  Thankfully, the Texas legislature recognizes that, while notarization of certain documents is still an indelible part of closing property and should not be eliminated in its entirety, new technology exists that can adequately eliminate the lack of availability of a notary from being a factor that delays the timing of a closing.

 Texas’s Remote Online Notary Bill (“H.B. 1217”) is the State’s solution to this problem.  As of July 1, 2018, Texans can now have their documents notarized by an official notary with the state via two-way audio/video communication (e.g., Skype, Apple FaceTime, etc.).  Specifically, H.B. 1217 modified Section 121.006 of the Texas Civil Practice and Remedies code by changing the law so that a person can “personally appear” before a notary via some form of qualifying online communication such as the foregoing examples.  In effect, audio and video conferencing with a notary puts Texans in the same room as the notary in the eyes of Texas.

 The notary is still required to follow certain procedures for the two-way audio/video communication to have the same validity as appearing personally.  Specifically, the notary must take steps to adequately verify the signer’s identification, which can be done in any one of the following ways: (1) the notary verifies the signer’s identification through the notary and signer’s previous relationship and business dealings, (2) the signer shows the notary a valid copy of his or her photo ID, or (3) a credible witness swears by oath that the signer is properly representing his or her identify, however, if neither the witness nor signer are previously known to the notary, then both the witness and signer must prove their identities by showing a valid ID and by using credential analysis (requiring a third person to affirm the validity of a government issued ID by reviewing public and private records) and identity proofing (requiring a third person to affirm the validity of signer’s identity by reviewing public and private records).

 While there are situational factors to consider, this new set of laws, in most cases, is reliable when dealing with Texas property.  For example, so long as the property in question is located in Texas, a notary registered outside of the state of Texas can act as the notary of documents for the closing of the Texas property through proper audio and visual means online so long as that notary still follows the processes and procedures applicable to Texas.  By leveraging innovative technology and other available resources, it is Texas’s aim to make this process as convenient as possible for its citizens.  Remote closings are yet another example of the Texas legislature’s attempt to continue to advance one of the most business-friendly climates in the country.

 

Prepared by the offices of Richard Abernathy, this article should not be construed as legal advice related to any specific facts or circumstances. Although this article covers legal subjects, it is intended to educate readers and not to provide advice that will be the basis for action or inaction in any specific circumstance. Viewing these materials does not create an attorney-client relationship between Abernathy, Roeder, Boyd & Hullett, P.C. and the reader or the reader’s institution. For circumstance-specific legal advice, please directly contact a licensed attorney.