The Dealership Notary With a Bonus on the Sale
Marcus is a Massachusetts notary public and the finance manager at a used-car dealership in Springfield. A customer, Angela, agrees to buy a car and signs a retail installment contract, a title assignment, and a limited power of attorney allowing the dealership to handle registration paperwork. Marcus's monthly bonus is based on the number of financed sales he closes, and this sale puts him over his target. The dealership has no other notary on staff that day. Angela asks Marcus whether the arbitration clause in the contract is enforceable and which of two title-assignment lines she should sign. Marcus also wants to charge Angela $20 for notarizing the three documents because a competitor charges that amount. Angela says she is in a hurry and asks Marcus to 'just take care of it.'
1. Can Marcus notarize Angela's signatures on these documents? Analyze the conflict.
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Marcus should not notarize these documents. A notary may not notarize a signature on a document in which the notary is a party or has a direct beneficial interest, and may not notarize the notary's own signature. As the finance manager whose bonus depends on this financed sale, Marcus has a financial stake in the transaction. Even if the customer volunteers, the conflict does not disappear. The dealership should arrange for an independent notary-another employee who is not part of the sale, a mobile notary, or the customer's own notary-to perform the acts. If Marcus proceeds, the certificates are vulnerable to challenge, and he risks discipline and loss of commission. He should also avoid using his position to pressure Angela to waive the conflict.
2. How should Marcus respond to Angela's questions about the arbitration clause and the title lines?
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Marcus may explain the notarial process and point out where signatures and dates go, but he may not explain the legal effect of the arbitration clause, tell Angela whether it is enforceable, or choose which title-assignment line is legally correct. Those are legal questions, and giving answers would be unauthorized practice of law. He should say: 'I can notarize signatures, but I can't give legal advice about this contract. You should ask your attorney or the lender's counsel.' He may read the document's title or identify signature blocks if that is purely clerical and not advice. He should not draft language, select among legal options, or tell Angela that a clause is 'standard' or 'fine.'
3. What is the maximum lawful fee, and how should the fee be handled?
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The maximum lawful fee is $6 per notarial act. If three separate notarial acts were performed, the maximum would be $18, not $20, and because Marcus has a conflict he should not perform them at all. The fee should be itemized as a notary fee and not folded into the sale price or described as a closing cost without disclosure. Marcus may not charge extra for same-day service or for using his commission. If another notary performs the acts, that notary sets and discloses the fee, subject to the same $6 cap. Marcus should also make sure Angela understands that she is not required to use the dealership's notary and that the notary fee is separate from the car purchase.