The Notary Who Is Also a Party
Grace is a commissioned Illinois notary and the owner of a small landscaping business. Her brother-in-law, Tom, is selling Grace a used truck. Tom asks Grace to notarize his signature on the certificate of title transfer. Grace will be the buyer and will sign the same document as purchaser. Tom says, 'You're the only notary we know, and it's just family.' Grace's commission is active, her bond is in place, and she has notarized dozens of documents for her business. She wonders whether she can simply notarize Tom's signature and then sign as buyer, since she is not notarizing her own signature. The truck is worth about $22,000, and the title will be submitted to the Secretary of State.
1. May Grace notarize Tom's signature on this transaction? Explain.
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No. A notary may not perform a notarial act in a transaction in which the notary has a direct beneficial interest. Grace is the buyer; she has an obvious financial interest in the transfer being valid. Even though she is not notarizing her own signature, she is a party to the transaction, and her certificate would be self-interested.
The reasoning turns on the purpose of the prohibition: the notary's certificate is supposed to be an impartial attestation. A notary who stands to gain from the document cannot supply that impartiality, and the conflict is apparent on the face of the title. The family relationship does not cure it.
2. What should Grace do to complete the title transfer lawfully?
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Grace should have Tom's signature notarized by an unrelated, commissioned notary who has no interest in the transaction. She can then sign as buyer. If a notary is not readily available, she should arrange for one - for example, at a currency exchange, bank, or shipping store - rather than notarizing the document herself.
She should also avoid any workaround such as having Tom notarize her signature (he is not a notary) or having a family member who is a notary perform the act if that person is also a party or beneficiary. The clean solution is an independent notary.
3. If Grace notarizes Tom's signature anyway, what is the likely outcome when the title reaches the Secretary of State?
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The conflict is visible on the document: the same name appears as notary and as purchaser. A clerk or examiner reviewing the title can see that the notary was a party, which invites rejection or a query. If the transfer is later disputed, the notarization is vulnerable to challenge as improperly performed, and Grace may face discipline for official misconduct as well as civil exposure.
The lesson is that notarial disqualification is judged by the notary's interest in the transaction, not merely by whose signature is being notarized.