Federal Title & Escrow Co., an independently owned title company in the D.C. metro area with a reputation of using technology to deliver a seamless closing experience, has successfully completed its first full eClosing.
“The real estate industry is rapidly transitioning to cater to a technologically savvy market,” said Todd Ewing, CEO and founder of Federal Title. “We began partnering with multiple providers and investing in software years ago to ensure we would be ready when our clients demanded eClosing compatibility.”
The eClosing was for a property in Virginia, which became the first state to allow use of video notary to legally sign closing documents in 2011, opening the door to make remote eClosings a viable option for homebuyers and sellers.
Virginia is home to a high population of military personnel, and among the many benefits, eClosings make it possible to legally sign documents even if one party is overseas – which is one reason the practice has gained traction in the Old Dominion.
Federal Title currently conducts settlements where one party to the transaction chooses to close electronically on nearly 30 percent of transactions, Ewing said, but the Virginia transaction that took place with Redfin Corp. and its lending affiliate Redfin Mortgage was the first closing Federal Title has conducted where all parties assembled in a digital closing room and no parties were face-to-face in person.
The transaction offers a glimpse of what’s to come in the world of real estate as antiquated regulatory practices stigmatizing the real estate industry give way to efficient and technologically more sophisticated closing practices.