As real estate settlement is transformed for eClosing experience, this dictionary is designed to help Title Agents to navigate key terms in the digital closing landscape. This dictionary is not all inclusive: applicable state laws, federal laws, and related regulations may have their own definitions that are also subject to amendment.
Acknowledgment
A formal declaration by a signer before a notarial officer that the Electronic Document is: (A) signed by the signer for the purpose stated in the Electronic Document; or (B) signed by the signer in an authorized representative capacity for the individual or entity identified in the Electronic Document.
Appearance or Appear
For notarial purposes, a signer must appear before a notarial officer, which requirement may be satisfied by: (A) the signer and the notarial officer being present before each other in the same physical location; or (B) in the case of remote notarization, the signer and the notarial officer are present before and interact simultaneous with each other through the use of real time and two-way audio visual communication.
Audit Trail
This technology tracks and logs the viewing of, signing, and changes to an Electronic Document.
Credential Analysis
Credential analysis is a process or service through which a a third party affirms the validity of a government-issued identification credential through review of public and proprietary data sources.
Digital Signature
A type of eSignature that uses additional encryption features to enhance security. Typically, Public Key Infrastructure (PKI) is used to match a signer’s secure “private” key to a “public” key held by a Certificate Authority (CA), who thereby authenticates the signature. Digital signatures are less widely used than basic, non-encrypted eSignatures because they are usually more costly and cumbersome.
Dynamic Knowledge – Based Authentication – KBA
Credential analysis is a process or service through which a a third party affirms the validity of a government-issued identification credential through review of public and proprietary data sources.
eClosing – Electronic Closing, Digital Closing
Any real estate closing event or process in which the buyer, seller, borrower, notary, or other party electronically signs or notarizes some or all of the closing documents. See the following definitions as to three most common forms of eClosing: Hybrid eClosing; In-Person eClosing; and Remote Online eClosing.
Electronic Document – eDocument, Eletronic Record
A document that is created, generated, sent, communicated, received, or stored by electronic means. There are two forms of electronic documents a a county recorder would receive: (A) Native Digital Document: This Electronic Document is created electronically on a computer and is electronically signed by a signer and a notary prior to its submission for eRecording. A native digital document is an original document in electronic form and never was a tangible piece of paper; or (B) Digitized Document or Scanned Image Document: This Electronic Document is a paper document with wet signed signatures and traditional notarization that has been scanned into a computer.
Electronic Notarial Certificate – eCertificate
The part of, or attachment to, an electronic document that is completed by the notary, bears that notary’s electronic signature and electronic seal, and states the facts attested to by the notary in the electronic notarization.
Electronic Notarization – eNotarization
This process applies the notary’s Electronic Signature and notarial stamp/ seal with an eCertificate to an Electronic Document. eNotarization may take place in-person or remotely on line, depending on what state law allows.
Electronic Promissory Notev – eNote
An eNote is set apart from other eDocuments because it requires special handling and storage. In order to provide the lender with the same rights and defenses available with a traditional paper note, there must be only one authoritative copy of the eNote and it must be stored in an “eVault”. When these conditions are satisfied, the eNote is deemed a “transferable record” and the lender is treated as the equivalent of a “holder” under the Uniform Commercial Code. See also the federal Electronic Signatures in Global and National Commerce (ESIGN) Act, 15 U.S.C. § 7021 and/ or Section 16 of the Uniform Electronic Transactions Act (UETA) as adopted by most states. An eNote must be eSigned.
Electronic Recording – eRecording
This type of recording is an electronic transmittal and recording of an Electronic Document in the Public Records by submitting the document to the county recorder (or equivalent) in digital form.
Electronic Seal
This seal is attached to or associated with an Electronic Document by a notarial officer and contains information as to the notarial officer’s commission and generally corresponds to information in notary seals used on paper documents.
Electronic Signature – eSignature, eSign
An electronic sound, symbol, or process attached to or logically associated with an Electronic Document and executed or adopted by a signer with the intent to sign. An eSignature is applied by the signer to an Electronic Document in place of a traditional or “wet ink” signature. A displayed eSignature type typically comes in one of three forms: holographic (a/k/a hand-drawn), cursive typeface or standard typeface.
Electronic Signatures in Global and National Commerce Act – E-Sign Act
This federal act of June 30, 2000 provides a general rule validating Electronic Documents with electronic signatures for transactions in or affecting interstate or foreign commerce. Subject to certain exceptions, this validity results in Electronic Documents treated the same as paper documents under any statute, regulation, or rule of law when the consumer has affirmatively consented to such use of an Electronic Document.
eVault
A secure, electronic, and certified storage facility or repository created to hold authoritative copies of eNotes.
Hybrid eClosing – Hybrid
This type of eClosing has some of the documents are in digital form and electronically signed, while some of the documents are in paper form and signed using pen-and-ink (often referred to as a “wet signing”). In a Hybrid eClosing, it is common to wet sign any documents that will be notarized or recorded with the county recorder and to eSign all other documents in the transaction. If the recordable documents are wet signed and notarized by traditional methods, then traditional recording methods and rules govern.
Identity Proofing
This process or service requires a third party to affirm the identity of a signer by use of: (1) dynamic knowledge based authentication; or (2) biometrics.
In-Person eClosing – IPEN, Full eClosing, In-Person eNotarization
This eClosing has all documents in digital form and electronically signed, but any documents requiring notarization are electronically signed on a computer or tablet device in the physical presence of a notary public who is authorized to perform in-person electronic notarizations. The notary public electronically notarizes the documents using the notary public’s electronic signature and electronic notarial seal.
MERS – MERS eRegistry
Mortgage Electronic Registration System (MERS) acts as a ledger for eNotes to be registered and uniquely identified. Used to track and verify ownership and the location of eNotes in an eVault.
Papering Out – Paper Out
This process, if allowed under state law, is the printing of an Electronic Document containing an electronic signature and submitting the printed version for traditional recording procedures. Depending on state law requirements, this process may require a certification that the printed document is a true and correct copy of the original Electronic Document.
Remote Online eClosing – Remote Online Notarization, RON, Online eClosing, Webcam eClosing
This eClosing has all documents are in digital form, but any documents requiring notarization are electronically signed during an interactive, online audio-video session with a notary public who is authorized to perform remote online notarizations (RON). The notary public electronically notarizes documents using the notary public’s electronic signature and electronic notarial seal.
Revised Uniform Law of Notarial Acts – RULONA
One of the Uniform Acts drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) with the intention of updating and harmonizing state laws regarding the electronic notarization of Electronic Documents.
Tagging
This technology adds fields to Electronic Documents where dates, eSignatures, and a signer’s initials of the eClosing signing event are incorporated into the Electronic Documents.
Tamper Evident
This feature safeguards the integrity of an Electronic Document by disclosing if an Electronic Document has been altered.
Uniform Electronic Transactions Act – UETA
One of NCCUSL’s uniform acts with the intent of harmonizing state laws for the treatment of Electronic Documents the same as wet-signed documents.
Uniform Real Property Electronic Recording Act – URPERA
This uniform act drafted by NCCUSL harmonizes state laws with principles of UETA by providing a framework for the of electronic recording of Electronic Documents.