Trent Cotney, Cotney Construction Law, LLP
The State of Florida legislature just passed House Bill 409 which will allow online notarizations to begin starting January 1, 2020. This is a leap into the twenty- first century for a traditional field that could save a lot of time and be very convenient for your business. However, let’s first discuss what online notarization is. Online notarization allows for a document to be notarized while the notary, and all other parties of the transaction are in different cities, or even different states. This article will discuss this new service and the legal issues associated with it.
The process requires all the parties to use voice/audio communication software. A couple examples of this type of technology are the popular applications Skype and Facetime. While it is uncertain what the standard software for online notarization will be, it should not deviate greatly from these types of applications. In order to use these types of programs, all that is needed for hardware is a webcam, microphone and speakers. These usually are included in most laptops or can be purchased separately if using a desktop. The software used will be determined by the notary as long as it follows the security requirements set forth in House Bill 409. Once all the parties have the applicable software and hardware, the parties will conduct a conference call. Once all the parties are on a conference call, the notary will need to confirm each party’s identity. Each party must provide a government issued photo ID, such as a driver’s license.
There is no exception to this requirement. In order to use this type of service and have the convenience of online notarization, all parties involved MUST have a government issued photo ID. However, this isn’t the only requirement a notary will ask for in order to prove identification. After the notary has seen your government issued photo ID, the notary will ask the parties questions from a knowledge-based system that will be unique to the individual. These questions, according to House Bill 409, must be from “a third-party provider of public and proprietary data sources and be identifiable to the principal’s social security number or other identification information, or the principal’s identity
and historical events records.” These questions will be drawn from credit reports, employment data and other information about an individual to help ascertain the identity of the parties in the online notarization process.
Online notarization allows for a great level of convenience by never having to visit the bank or arrange an in-person meeting for the notarization process at the bank or elsewhere. By never having to leave the office or even your own home to have a document notarized, it can be much easier to do notarizations without much advanced planning or coordination. This type of convenience can save you time and everyone knows that time is money. The hardware and software for online notarization is not costly or difficult to obtain. This service will likely be the most valuable to construction companies that have multiple offices and areas of operation where communication and travel between the locations is required. All notarizations could be conducted from the principal office or any other arrangement of your choice with this new process.
If your business already has a notary, there is a process that must be followed for the notary to be able to conduct online notarizations. These requirements are laid out in House Bill 409. A short summary of these requirements is as follows: for a notary to start doing online notarizations they must take a 2-hour class through the State of Florida, have their software meet the state security requirements set forth in House Bill 409, and keep an online record of the notarizations and maintain the records of all online documents for 10 years. There are also various insurance requirements and other details, so make sure to consult a professional when complying with the new legislation. Because of
these additional requirements online notarizations can charge up to $25 a transaction instead of the $10 maximum that is associated with traditional notarizations.
Online notarization will be a method of convenience coming to the State of Florida in 2020. Even if you don’t have the desire to implement this practice in your business, it may be important to still have a webcam and the capabilities in case a high-value client or other individual wants to take advantage of this service. As mentioned, this service is most valuable to construction companies with multiple offices and areas of operation. If you have any questions about
complying with the new legislation or implementing online notarization into your current business model, please don’t hesitate to call.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
Cotney Construction Law is an advocate for the roofing industry, General Counsel of FRSA, NWIR, TARC, TRI, RT3, WSRCA, and several other local roofing associations. For more information, contact the author at 866-303-5868 or go to www.cotneycl.com.
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