Flat Fee, Cash Discount, and Undervaluation in an Estate File
Notary Aizada in Jalal-Abad meets a pensioner, Tolkun, who needs an inheritance certificate for herself and her brother, a sale of her apartment, and a power of attorney for her son. Aizada quotes 35,000 som 'all inclusive' if paid in cash, or 45,000 som if a receipt is required. She says the apartment can be valued at 1,200,000 som in the deed instead of the market 2,900,000 som 'to reduce the tariff.' She asks Tolkun to pay 5,000 som directly to her assistant for filing. The office price list is not displayed. Tolkun asks for a receipt and a copy of the tariff. Aizada says private notaries set their own prices and receipts are optional for consultations. The inheritance involves two heirs, one living in Russia, and the apartment has an old mortgage notation.
1. Assess the lawfulness of the quoted fee, the cash discount, and the refusal to give a receipt.
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The notary may charge the tariff established for mandatory notarial acts and may charge separately for additional services only if those services are lawful, explained, and documented. The notary cannot offer a lower price for cash and a higher price for a receipt. That is not a fee policy; it is an attempt to avoid recording income. A receipt must be issued for money received, and the office should display or provide its price list and tariff basis.
The 5,000 som payment directly to the assistant is also problematic. Employees may be paid by the notary, but a separate cash payment for 'filing' without a receipt creates a risk of unrecorded income and undisclosed fees. The notary should give Tolkun a written calculation showing the tariff for the inheritance certificate, the sale, and the power of attorney, and should issue a receipt for the total.
2. Why is the proposal to value the apartment at 1,200,000 som instead of 2,900,000 som improper?
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The notary is proposing to record a price that the parties do not actually agree to and that does not reflect the market value. That is not a lawful way to reduce the tariff. It creates a false notarial document, understates the tax base, and can prejudice the heirs and creditors. If the apartment is later sold or used as security, the undervaluation can also mislead third parties.
The correct value must be determined under the applicable rules for the specific notarial act, using the cadastral or market evidence required by law. If Tolkun disputes the valuation, the notary should explain the basis and allow her to obtain the required valuation document, not invent a lower figure.
3. What should the notary do about the mortgage notation, the heir in Russia, and the disciplinary risk?
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The old mortgage notation must be checked before the sale or inheritance certificate. If the mortgage is still registered, the notary cannot ignore it; the bank's consent or a registered discharge is required. For the heir in Russia, the notary should require a properly legalized or apostilled power of attorney if the heir acts through a representative, or explain the procedure for accepting the inheritance through a representative.
The fee and receipt conduct creates disciplinary risk. The Chamber of Notaries and the Ministry of Justice may review complaints about tariffs, receipts, and false valuation. The notary should correct the practice, issue a proper receipt and calculation, display the price list, and avoid any cash discount. The notary should also keep a written record of the mortgage check and the foreign heir's documents.