The Fee, the Deposit and the Pressure to Skip the Register
An assistant notary is preparing a deed for the sale of a commercial unit for BGN 240,000. The parties ask that the deed state a price of BGN 120,000 'for the tax office' and that the difference be paid in cash outside the deed. They also ask the assistant notary to reduce the fee by treating the transaction as a certification of signatures rather than a notarial deed. The assistant notary's principal is on leave. A clerk suggests that the property register check can be skipped because 'the parties have a recent extract'. The buyer has already transferred BGN 50,000 to the seller's account and is anxious. The assistant notary is also asked to keep the cash difference in the office safe until the following week.
1. How should the assistant notary respond to the request to understate the price?
Read the worked answer
The assistant notary must refuse. The notarial deed must state the true price agreed by the parties. Understating the price to reduce taxes is a false declaration and may constitute tax evasion; the notary and assistant notary must not participate in it. The notary's duty is to establish the true content of the transaction and to record it accurately. The assistant notary should explain the legal consequences to the parties, including the risk that the deed is attacked, that the tax authority may reassess, and that the notary may face disciplinary and criminal exposure. If the parties insist, the assistant notary should decline to act and inform the principal notary. The buyer's anxiety and the prior BGN 50,000 payment do not justify a false deed.
2. Can the transaction be treated as a mere certification of signatures to reduce the fee?
Read the worked answer
No. The transaction is a sale of a commercial unit, which requires a notarial deed with the prescribed form and content, not a mere signature certification. The fee must be calculated according to the applicable tariff for the actual legal act, based on the true value. Deliberately recasting the act to pay a lower fee is a breach of the tariff rules and of professional ethics. The assistant notary should calculate the fee on the correct basis and explain it to the parties. If the parties dispute the fee, they may ask for a written calculation, but the assistant notary cannot manipulate the classification. The principal notary should be informed of the request.
3. What should the assistant notary do about the register check and the cash held in the office?
Read the worked answer
The register check cannot be skipped. A recent extract produced by the parties is not a substitute for the notary's own verification, which is needed to confirm ownership, encumbrances and the identity of the property. The assistant notary should obtain a current extract or verify the register directly. As for the cash difference, the office must not hold unexplained cash from a transaction with an understated price. Accepting it would facilitate the concealment and create a record-keeping and anti-money-laundering problem. The assistant notary should refuse to hold the cash, document the refusal, and, if the parties persist, consider whether a suspicious transaction report is required. The principal notary should be consulted on the file.