Notary vs. Apostille – And When Can Foreign Nationals Use Online Signatures

Tagged: ,

  • Notary vs. Apostille – And When Can Foreign Nationals Use Online Signatures

    Posted by Nadlan Group on April 16 at 22:33

    When working with foreign national investors purchasing or refinancing real estate in the U.S. through DSCR (Debt Service Coverage Ratio) loan programs, questions often arise regarding document execution and validation — specifically, when a notary or apostille is required, and whether documents can be signed electronically.

    Here’s what borrowers need to know.

    🔍 What is a Notary?

    A notary public is a government-authorized official who verifies the identity of the person signing a document, ensures they are signing willingly, and then applies an official stamp or seal.

    Key facts:

    • A notarized signature is often required for loan documents, such as the Note, Deed of Trust or Mortgage, and sometimes the Closing Disclosure (CD).

    • U.S.-based notaries can be used for citizens or foreign nationals physically present in the U.S.

    • Notarizations may also be done remotely via Remote Online Notarization (RON), depending on lender and title company policies.

    🌍 What is an Apostille?

    An apostille is a special form of certification issued under the Hague Convention of 1961 that verifies the legitimacy of a public document (such as a notarized signature) for international use.

    When is an apostille required?

    • If a foreign national borrower signs loan documents outside the U.S., and the documents are notarized by a foreign notary, then an apostille is usually required to validate the foreign notary’s authority.

    • The apostille certifies the notary so that their signature is accepted by U.S. institutions such as the lender, title company, and county recorder.

    📄 Notary vs. Apostille – Key Differences

    Notary:

    • Verifies the identity of the signer

    • Commonly used for documents signed inside the U.S.

    • Required for loan documents like the Note and Mortgage

    • Can be done remotely using Remote Online Notarization (RON), if allowed by the lender and title company

    • Issued by a U.S. state or local government official

    Apostille:

    • Certifies that a foreign notary or official is legitimate and recognized internationally

    • Required when a foreign national signs documents outside the U.S. with a non-U.S. notary

    • Validates the signature for use in the U.S. under the Hague Convention of 1961

    • Must be obtained through the government of the country where the signing occurred

    • Cannot be done electronically — only available through physical, wet-signed notarization

    ✅ Can Foreign Nationals Use Electronic Signatures in DSCR Loans?

    Yes — but with some important limitations.

    Most DSCR lenders do allow electronic signatures on the initial disclosures and non-notarized documents, such as:

    • Loan application (1003)

    • Preliminary loan disclosures

    • Bank statements and personal financial statements

    • Entity documents (LLC, EIN, operating agreement, etc.)

    However, for closing documents, especially:

    • The Note

    • The Mortgage or Deed of Trust

    • The Final Closing Disclosure (CD)

    the signature must typically be:

    1. Wet-signed (hand-signed with ink)

    2. Notarized by an approved notary

    3. Apostilled, if signed outside the U.S. by a foreign notary

    ✨ When Remote Online Notarization (RON) Is Allowed

    Some DSCR lenders allow foreign nationals to complete notarized closings using Remote Online Notarization, but only if:

    • The title company also accepts RON

    • The borrower has valid identification (passport, etc.)

    • The borrower is in a country that does not legally prohibit RON

    • The RON platform is recognized and approved by the lender

    At Nadlan Capital Group, we regularly help coordinate closings using RON platforms — making it easier for foreign borrowers to complete their loans without flying to the U.S.

    📞 Need Help With Your Closing Documents?

    Whether you’re closing from Tel Aviv, Toronto, or Texas — our team at Nadlan Capital Group can walk you through your document requirements step by step, including apostille assistance and remote notary coordination.

    Contact us today:

    Nadlan Group replied 1 month, 1 week ago 1 Member · 0 Replies
  • 0 Replies

Sorry, there were no replies found.

Log in to reply.