From paper to digital: Understanding NY’s notary transformation and enhanced title protections

March 20, 2024 Robert Abruzzese, Courthouse Editor

Keith Madden, vice president and underwriting counsel at Stewart Title Insurance Company.
Courtesy of Brooklyn Bar Association

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A recent Continuing Legal Education (CLE) seminar was hosted by the Brooklyn Bar Association on March 5, 2024, where legal professionals gathered to delve into the intricacies of New York’s new notary law under Executive Law 135-c and the nuances of remote notarization, as well as the TIRSA Extended Owner’s Protection Policy (TOEPP).

Section 135-c of the Executive Law introduces electronic notarization in New York and outlines the use of technology to perform notarizations remotely. The law sets forth the criteria for electronic records and notarial acts, establishing that notaries must be physically in New York but can serve individuals remotely, including those outside the U.S., under certain conditions.

To conduct electronic notarial acts, notaries must register with the Secretary of State, detailing their electronic notarization capabilities and technologies used. The law specifies which notarial acts can be performed electronically, emphasizing the need for secure and detectable electronic signatures and the preservation of video and audio recordings for ten years.

Moreover, the law mandates notaries to update their registration with any changes in their email address and clarifies that electronic notarization is optional for notaries. It ensures that electronic notarizations meet all legal requirements for notarial acts, including when a principal’s physical presence is traditionally required, broadening the scope for remote transactions and document processing in a digital age.

The seminar opened with a brief introduction and quickly transitioned to an in-depth exploration of title insurance, highlighting its role in protecting against hidden risks and non-record matters. Keith Madden, vice president and underwriting counsel at Stewart Title Insurance Company, emphasized the importance of title insurance as a form of “litigation insurance,” providing a safety net against various title defects and encumbrances.

The discussion on the TOEPP detailed the coverage for risks not typically included under the 2006 ALTA form of title policies, offering broader protection for property owners.

The second half of the seminar focused on the recent changes in notary laws and regulations, with a particular emphasis on remote online notarization (RON). Madden outlined the requirements for RON, including identification, platform standards and journal requirements, providing clarity on the operational aspects of this modernized process.

The transition to RON marks a significant shift in how notarial acts are performed in New York, aiming to enhance convenience while ensuring the integrity of notarized documents.

This seminar served as an invaluable resource for legal professionals seeking to navigate the evolving landscape of notary laws and title insurance policies. Through Madden’s expertise, attendees gained a comprehensive understanding of these critical areas, which is meant to help to better serve their clients in an increasingly digital and complex legal environment.