Troy’s eTitle Agency Inc., a national provider of title and settlement services, Tuesday announced it will offer digital home closings in Michigan, which could reduce closing times to 15 minutes or less, down from about 90 minutes.
The company will use Texas-based Pavaso Inc.’s Digital Close product to facilitate paper, hybrid, or fully digital closings. The product enables online communication and collaboration between the real estate agent, lender, title or settlement agent, and borrower during the process.
“The home buying and selling process is time consuming and complex,” says Mike Telford, senior vice president of eTitle Agency. “Allowing people to sign their documents electronically simplifies the closing process for all parties.”
Electronic closings became possible in Michigan in July with the passage of House Bill 5811, which allows a Michigan notary to perform a remote notarization, which are often conducted via webcam.
The new digital close is a two-step process. Buyers and sellers will be able to review their closing documents online and electronically sign them. Once they are signed, all parties can meet to complete the closing and for final notarization. After the documents are complete, all parties receive a digital loan package that can be accessed at any time.
“The digital closing will revolutionize the retail and commercial real-estate market,” says Telford. “Not only does it shorten the actual time of the closing meeting, it shortens the closing cycle. Sellers and their agent will receive the funds almost immediately following the closing of a digital transaction.”