New Law Allows More Closings Using Online Notarization in California

Last year, California passed SB 696, authorizing their notaries to perform remote online notarizations and ensuring that notarizations from other states were recognized in California. You can read more about it here.

As huge of an accomplishment as passing that legislation was, it didn’t account for situations when a real estate closing could not be electronically recorded. Fortunately, legislation recently signed by California Governor Gavin Newsom, AB 2004, has bridged the gap, allowing a copy of electronic documents to be submitted on paper and then recorded. Now, customers across California can use online notarization to close their property.

What is AB 2004?

AB 2004 is legislation introduced by Assembly member Petrie-Norris in January of 2024. The main impact of the bill for users of online notarization will be that counties that only accept paper documents for recording will have a way to take documents that were electronic to begin with. 

How does it work? An individual (termed a "disinterested custodian" in the bill) presents a tangible copy of the original electronic documents to a notary public, and swears an oath or affirmation that the tangible copy is a true and accurate reproduction. The notary will complete a jurat (a standard notarial act involving the swearing of an oath or affirmation) which will then accompany the tangible documents to be recorded with the county. That's it!

‍What does this mean?

This means that real estate across all of California will be able to be closed using online notarization! Regardless of whether the county in which the property is located e-records or not, there is now a mechanism to allow buyers to purchase homes remotely and online, across the entirety of the Golden State.

AB 2004 goes into effect on January 1, 2025. Once that occurs, all 58 counties in California will be able to participate in a more secure closing process.

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