Prohibited Acts, Conflicts of Interest, and Liability
Prohibited Acts, Conflicts, and Liability
This domain tests the limits on a notary's conduct and the consequences of overstepping. The notary is personally responsible for each act; the commission does not shield the notary from civil or criminal liability.
Prohibited acts
- Notarizing the notary's own signature or a document in which the notary is a signer or has a beneficial interest.
- Notarizing for a spouse, ancestor, descendant, or sibling where state law prohibits it.
- Performing a notarial act without personal appearance or required identification.
- Completing a certificate for an act that was not performed.
- Giving legal advice, drafting legal documents, or explaining legal effect.
- Charging fees above the statutory maximum or charging for an act not authorized.
- Certifying copies of records the state prohibits, such as vital records.
- Using the seal after expiration, resignation, or revocation.
Liability
The notary bond or surety bond protects the public from certain losses; it is not errors and omissions insurance. A notary may face civil damages, criminal penalties for fraud or false certificates, and administrative action by the commissioning authority. Many notaries carry errors and omissions coverage.
Worked example
A notary is asked to notarize a deed transferring property to the notary's own LLC. The notary has a beneficial interest and must decline. The proper response is to refer the signer to an independent notary. The reasoning: impartiality is essential, and a certificate signed by an interested notary is vulnerable to challenge and may violate state law.
Traps
- Thinking the bond is personal insurance.
- Notarizing for a relative without checking the state's conflict rule.
- Explaining what a document means or whether it is legal.
- Acting after the commission expires because the seal is still in the desk.