Remote or Virtual Real Estate Closings

Remote or Virtual Real Estate Closings: How It Works

The real estate industry has witnessed significant changes over the past few years, with technological advancements transforming traditional practices. One of the most notable innovations is the rise of remote or virtual real estate closings. These virtual closings have gained momentum, particularly in response to the COVID-19 pandemic, which necessitated social distancing and minimized in-person interactions. This article explores the concept, benefits, challenges, and future prospects of remote or virtual real estate closings.

What Is Remote Real Estate Closing?

What Is Remote Real Estate Closing

Remote real estate closing, also known as virtual real estate closing, is the process of finalizing a real estate transaction where all parties involved, including buyers, sellers, agents, and legal representatives, complete the necessary steps without being physically present in the same location through digital tools and platforms that facilitate electronic signatures, document sharing, and virtual meetings. The process involves using software to handle the documentation and video conferencing technology to conduct the closing meeting. By leveraging these technologies, remote real estate closings allow for the seamless completion of transactions from any location, providing flexibility and convenience to all participants.

The concept of remote real estate closings has gained significant traction, especially in response to the need for social distancing measures brought about by the COVID-19 pandemic. This method reduces the need for travel and physical interaction. It accelerates the closing process, often leading to quicker and more efficient transactions. Additionally, remote closings can save costs by minimizing travel and in-person meeting expenses. As technology advances, the adoption of remote real estate closings is expected to grow, becoming a standard practice in the real estate industry due to its efficiency, convenience, and adaptability to various situations.

How Does Remote Closing Work?

The remote closing process begins with identification verification. Software such as Treefort is used to virtually verify the identity of applicable parties. The process is followed by sharing all necessary documents through secure software platforms. The involved parties then electronically sign these documents using e-signature technology, ensuring the signatures are legally binding and compliant with applicable regulations.

What are the Benefits?

The benefits of remote real estate closings are numerous, reflecting the advancements in technology and the evolving needs of the real estate market. Here are some of the key benefits:

Convenience and Accessibility

One of the most significant benefits of remote closings is its convenience. Parties involved in the transaction can participate from any location, reducing the need for travel and accommodating busy schedules. This is particularly advantageous for out-of-town buyers or sellers, who can complete transactions without the logistical challenges of being physically present.

Potential Cost Savings

Remote closings may lower the overall cost of the transaction by eliminating the need for physical meetings and reducing travel expenses. This benefit is especially pronounced for parties located in different cities or countries.


The flexibility of remote closings allows for better coordination among all parties involved. Real estate agents, legal representatives, and clients can easily schedule virtual meetings and document reviews at convenient times, accommodating different time zones and work schedules.

What are the Risks and Challenges?

While remote real estate closings offer numerous benefits, they also present risks that must be carefully managed to ensure a smooth and secure transaction. Here are some of the key risks associated with remote real estate closings:

Different jurisdictions have varying regulations regarding electronic signatures and remote notarization. Ensuring compliance with these laws is required to validate the transaction. Failure to adhere to local legal requirements can invalidate the closing process, potentially leading to legal disputes and financial losses.

Technological Barriers

Not all participants may be equally comfortable or equipped with the necessary technology to engage in a remote closing. Technical difficulties such as internet connectivity issues, software compatibility problems, or unfamiliarity with digital tools can disrupt the closing process.

Security Concerns

Despite the advanced security measures of modern digital platforms, cyber threats such as hacking, phishing, and data breaches are always risky.

Verification Challenges

Verifying the identities of all parties involved in a remote closing can be more challenging than in-person interactions. Ensuring the person signing the documents is the authorized party requires verification methods to prevent fraud and identity theft.

Communication Issues

Clear and effective communication is crucial during the closing process. Due to the lack of face-to-face interaction, there is a risk of miscommunication or misunderstanding in a remote setting. Ensuring regular, clear, documented communication through secure channels can help mitigate this risk and keep all parties informed and aligned.

Technical Failures

Dependence on technology means that technical failures, such as software malfunctions or system outages, can disrupt the closing process. Having contingency plans in place, such as backup systems or alternative methods of communication, can help address these issues and ensure the transaction proceeds smoothly.

Virtual Signing Protocol in Ontario

In Ontario, the virtual signing protocol for real estate transactions has been adapted to accommodate the increasing use of digital tools and platforms. This protocol ensures that electronic signatures and remote notarization meet legal standards and provide a secure and efficient process for completing real estate transactions. Below is an overview of the key components and considerations involved in the virtual signing protocol in Ontario:

Video Conferencing

Video conferencing is required for virtual real estate transactions. Platforms like Zoom, Microsoft Teams, or Google Meet provide a secure way to conduct virtual meetings, discuss transaction details, and facilitate remote notarization. The real estate lawyer will conduct a video call will to discuss final closing remarks and signatures.

Preparing for Your Virtual Real Estate Transaction

Document scanning and transfer are required for virtual real estate transactions. A secure, compliant digital platform, such as DocuSign or Adobe Sign, is used for electronic signatures and document sharing, and it meets Ontario’s legal standards.

Virtual Commissioning

Virtual commissioning allows documents to be legally commissioned or notarized without physical presence. It is conducted via secure video conferencing platforms, where a real estate lawyer witnesses the signing of documents in real time. The real estate lawyer verifies the signer’s identity and conducts a virtual commissioning process to ensure it meets legal requirements.

Conduct Electronic Signatures

The real estate lawyer oversees the entire e-signing process, verifying the identities of all parties involved and ensuring that each document is signed correctly and in compliance with legal standards. The lawyer guides clients through the process, addressing technical or legal questions. Ensuring that all electronic signatures are correctly executed and documented, the real estate lawyer plays a crucial role in maintaining the transaction’s integrity, making the virtual closing process both efficient and legally sound.


Remote or virtual real estate closings utilize digital tools and secure platforms to complete real estate transactions without physical presence. The process involves electronically signing documents, verifying identities through secure methods, and conducting virtual meetings via video conferencing to finalize details and address questions. Real estate lawyers facilitate legal compliance by overseeing electronic signatures and remote notarization. This approach offers convenience, efficiency, and potential cost savings while ensuring the legal compliance required.

How We Can Help

Insight Law Professional Corporation is a real estate law firm located in Toronto. If you need more information on real estate transactions, contact us today and learn how a real estate lawyer can help you.

The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.

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