A real estate client of mine sent me an article form the New York Times praising electronic closings. The actual experience is not the nirvana that the Times thinks it is. The software is cumbersome and designed to make it even harder for the borrowers to know what they are signing. It also is burdensome on small law firms who will have to adopt different pieces of software for every lender. There is a much better way to simplify the closing process, simply reduce the unnecessary documents, many of which are repetitive and can be condensed into many fewer documents. Real estate closings are an example of disclosures gone awry. Too much information is not helpful as people need to close and don’t have time to sit and read every piece of paper. We need smarter and clearer disclosures, not more disclosures and not gimmicks like esigning.
Sign on the Digital Dotted Line
Technology for paperless closings has long been available, and now lenders have new incentives to adopt it.