Electronic recording has the potential to revolutionize the way local attorneys do conveyancing. In a typical transaction today, the buyers, sellers, and brokers all meet at the lawyer's office, documents are signed, and someone brings the documents to be recorded to the registry of deeds. A final rundown is done and the documents go on record. Only then are the funds released. Then it's a long wait to recieve the original documents from the registry. Electronic recording will make this entire process much more efficient. The parties will still gather at the lawyer's office, but once the documents are signed, the lawyer and her staff can complete the entire transaction in a matter of minutes without ever leaving the office. First, they would use their own desktop scanner to create electronic images of the documents to be recorded. Next, information about those documents would be entered into a secure, web-based user interface. Then, the lawyer would do a quick rundown using the registry's website which is continuously updated with newly recorded documents. If the title remains free and clear, the lawyer simply clicks on the "send" button and the electronic package of document images and data zip across the Internet to a registry recording terminal. The registry clerk will verify the images to make sure they are legible, will verify that the data that has been entered (names and addresses, mostly) is accurate, and will click the "record" button. Those documents are now on record. The attorney will immediately receive via the Internet a receipt showing the time of recording, book and page number and recording fee of each document. The lawyer will also receive an electronic image of the recorded document complete with all recording information on it. Before the seller is done telling the buyer which day the garbage is collected, you're on record with a receipt and a copy of the recorded document. The originals have never left your custody. Maybe it's difficult to envision this without seeing the system in operation. We're working on some modifications to our website that will include a PowerPoint-type presentation on the new system. Stay tuned to the blog for more information on electronic recording.
Tuesday, August 17, 2004
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3 comments:
The lawyer and HER staff?
"Their" staff - anyway. System sounds efficient - let's hope over-tasked paralegals and staff aren't sent over the edge - you know who you are. Attorneys will now have to take on more staff which includes covering salaries, benefits etc. The benefit of hiring an "independent examiner" is that A. Majority of the time - depending upon the lender and loan - the fee for such a service performed by an examiner is listed on the Hud and paid by the borrower and not out of the Attorney's fee. Said fees also include package being sent via overnight or courier. Examiners have also been known to pick up such packages as part of their service. and B. Instead of having the overhead of hiring additional staff - Attorneys use independent examiners only when they need 'em! Not to mention names, but we have recently witnessed the professional disasters which occur when a company bites off more than it can chew and must lay off staff when times are slow. And in this business, we have time and time again seen the very best and the very worst of times. More efficient for buyers, sellers, brokers, etc. - I guess.... questionable whether it is for the conveyancing Attorneys who bring it all together.
Thanks for the comment. Grammar ("her" v "their") has never been my strong suit. I think the tense bounces back and forth, too. As for the substance of the comment, this technology is such a radical change from current practice that it will require radical changes in business practices, as well. That's why it's so important to start this discussion now: people need time to think about its potential.
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