News + updates + recent press
Remote Online Notarization (“RON”) continues to grow in popularity across the country as the industry continues to navigate through the pandemic. The American Land Title Association (“ALTA”) conducted a survey of consumers who have used some version of RON as part of a real estate transaction. An overwhelming number of the consumers polled felt the RON process was safe and secure. ALTA published the results from a Virginia based title company showing that 95% of the surveyed consumers would recommend RON to other consumers.* Not surprisingly, the use of RON is on the rise and more and more states are enacting statutes allowing for some version of RON. As of July, ALTA noted that 37 states currently have a statute related to RON. We predict this number will increase in 2022 with the next cycle of legislative sessions convening.
Exploring Remote Online Notarization as a Trend Across the Nation and in PLG Footprint States Indiana, Florida, Georgia, and Texas
Remote Online Notarization (RON) is a hot topic in the real estate community right now. This is a result of purchasers and sellers wanting a more flexible closing process in today’s busy world and the current landscape of the real estate market.
The Florida Legislature passed a new law relating to drafting errors in deeds that went into effect on July 1, 2020. Florida Statute Section 689.041 provides a procedure to cure scrivener’s errors in deeds instead of these issues having to be addressed through litigation. The statute allows for specific errors to be resolved by preparing and recording a “curative notice”. The types of issues that can be corrected with the curative notice are specifically outlined in detail in the statute. The issues that can be fixed include errors or omission in the lot or block information of the property, errors or omissions in the unit, building, or phase identifications of a condo unit, and errors or omissions in a directional call or fraction of a section, township or range in the legal description. However, the statute only applies where there is a “single error” in the legal description. It seems the intent was to limit the number of errors that can be corrected using the curative notice, so deeds with multiple errors may not be able to rely on the statute’s remedy.
Recently, several national title insurance companies have sent out bulletins to their agents regarding their company's position on how the CARES Act is affecting the industry. Specifically, some of the title insurance companies are requiring additional steps in order to insure properties related to foreclosure sales held during the moratoriums imposed by the CARES Act. At least one title insurance company has decided to not insure any property related to a foreclosure action during the timeframe that the CARES Act applies, whether the Act covers that property or not. These measures from the title insurance companies will apply to any foreclosure sale held between March 18, 2020 through May 17, 2020 during the current period the Act is in place. Of note, these restrictions and additional requirement also apply to any post-foreclosure conveyances and REO transactions. This will affect any conveyance to HUD or the VA since title insurance policies are required to be submitted along with the title packages. The CARES Act continues to have an impact on the industry, so it is important to understand the potential challenges with obtaining title insurance for post-foreclosure processes including conveyances and REO. PLG has been diligent in working with multiple national title insurance companies to ensure our clients' post-foreclosure needs are met. We have a plan in place in order to issue the title insurance policies in compliance with the requirements set forth by the title insurance companies so our clients' sales subject to conveyance and REO transactions can move forward. PLG is also continuing to stay connected to the local title insurance underwriters for any changes in their requirements as the industry moves forward during these unique times.
Padgett Law Group is pleased to announce the hiring of Joshua R. Hopkins in the role of Supervising Attorney, REO & Title Operations. As the Supervising Attorney, Hopkins' first priority is overseeing the departments' compliance with requirements and regulations as they relate to investors and clients. In addition to departmental oversight and assisting with title and closing process questions, Hopkins is also responsible for managing client relationships and new business development for the departments.
Hopkins has over 20 years of industry experience, bringing his wealth of knowledge to creditor's rights clients in Tennessee and Georgia. "We often speak of The Padgett Law Group Difference, which is focused on expedient and exceptional client service. While implementing advanced technology solutions and qualitative compliance oversight, it's our top-notch team members that make the vision come alive. Joshua's unique skillset and exceptional client service ensure our REO & Title division will continue to meet and exceed client requirements."
Hopkins earned his Juris Doctorate from the Nashville School of Law after graduating with a Bachelor of Arts from the University of Tennessee-Knoxville. He is a member of the Tennessee Bar Association and currently serves as the Chair of the Education Committee of the Tennessee Land Title Association. He is based out of the firm's Atlanta, GA office. Reach out to Joshua at JHopkins@padgettlaw.net.
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The information contained on this blog shall not constitute legal advice or a legal opinion. The existence of or review and/or use of this blog or any information hereon does not and is not intended to create an attorney-client relationship. Further, no information on this blog should be construed as investment advice. Independent legal and financial advice should be sought before using any information obtained from this blog. It is important to note that the cases are subject to change with future court decisions or other changes in the law. For the most up-to-date information, please contact Padgett Law Group (“PLG”). PLG shall have no liability whatsoever to any user of this blog or any information contained hereon, for any claim(s) related in any way to the use of this blog. Users hereby release and hold harmless PLG of and from any and all liability for any claim(s), whether based in contract or in tort, including, but not limited to, claims for lost profits or consequential, exemplary, incidental, indirect, special, or punitive damages arising from or related to their use of the information contained on this blog or their inability to use this blog. This Blog is provided on an "as is" basis without warranties of any kind, either express or implied, including, but not limited to, warranties of title or implied warranties of merchantability or fitness for a particular purpose.
Padgett Law Group and Padgett Law Group EP are D/B/As of Timothy D. Padgett, P.A. Timothy D. Padgett, P.A.'s practice areas include creditors' rights, estate planning and probate, real estate transactions and litigation. Not all practices or services are available in all states in which Timothy D. Padgett, P.A. practices.