The Title Company's Cash Drawer and the Manager's Shortcut
Nadia is a full-time escrow assistant at a title agency that paid for her commission, her stamp, her bond, and her journal; she notarizes at closings as part of her job. On Saturday the borrower on a refinance is her brother-in-law, Dev. The lender package contains three documents requiring notarization: the mortgage, an occupancy affidavit, and a name-affidavit correction. After signing, Dev's wife hands Nadia $30 cash and says, "That's for you - the bank said notaries get paid for this." Nadia's manager tells her to "skip the journal today, we're behind, and just stamp them," and adds that the journal stays in the office file cabinet once Nadia eventually moves on. The closing package must be shipped by 5 p.m.
1. May Nadia notarize the three documents for Dev? Analyze the conflict and set out her options.
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Pennsylvania does not categorically bar a notary from notarizing for a relative, spouse, in-law, or friend, and a brother-in-law relationship is not by itself a disqualification. What the law does bar is notarizing a document in which the notary is a party or holds a beneficial interest, and what ethics demand is that a notary avoid acting where her impartiality can reasonably be questioned.
On these facts:
- Nadia is not a party to the mortgage, the occupancy affidavit, or the name affidavit, and she takes no ownership or loan interest in the property. So the flat prohibition is not triggered.
- But the relationship is close, the transaction is a refinance of a family member's home, and Nadia's employer is being paid a settlement fee. A later challenger could argue she was not a neutral certifying officer. That is an appearance problem, not an automatic invalidity problem.
Her reasonable options, in order of preference:
- Have a different notary in the office handle Dev's package - this is a busy title agency; another commissioned employee is likely available and this removes the issue entirely.
- Proceed, but disclose and document - if no other notary is available and the deadline is real, Nadia should perform the acts scrupulously, note the relationship and the method of identification in her journal, and be able to explain why she acted. She should also confirm Dev's identity independently rather than relying on 'I know him'.
What she must not do is treat the relationship as a reason to skip identification, skip the journal, or let the manager sign her name.
2. What should Nadia do with the $30? Analyze the fee rules and who is entitled to charge.
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Two separate issues arise: the amount, and who may collect it.
The amount. Pennsylvania caps what a notary may charge for a notarial act - the cap is a few dollars per act (currently $5 per notarial act; confirm the figure on the Department of State's current fee schedule). Thirty dollars for three certificates may exceed the statutory maximum depending on how the acts are counted, and it certainly cannot be justified as a vague gratuity for 'notary work.' Travel and similar charges may be agreed separately, but not disguised as a per-act fee.
Who may collect. Nadia's employer pays for her commission, stamp, bond, and journal, and the settlement fee the borrower pays already compensates the agency for the closing. Accepting a separate cash payment directly from the borrower creates at least three problems: it may exceed the cap, it may be an undisclosed charge in a federally regulated closing, and it looks like a side payment for performing a duty she is already paid to perform.
The clean answer is to hand the money back, explain that notarization is included in the closing costs, and if any fee is genuinely due, have the agency bill it on the settlement statement rather than take cash. Nadia should also tell her manager what happened so there is no later suggestion of a concealed payment.
3. The manager orders her to skip the journal and says the journal belongs to the office. How should Nadia respond?
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Both instructions are wrong, and Nadia must not comply with either.
The journal. A commissioned notary is personally responsible for the journal; it is a statutory record of her official acts, not office stationery, even if the employer bought it. Each notarial act must be entered contemporaneously, with the date, the parties, the document, the act performed, and the method of identification. 'We're behind' is not an exception. Omitting entries is the kind of recordkeeping failure that can draw discipline, and it also strips Nadia of the evidence she would need if the mortgage or affidavits are later challenged.
Future custody. When Nadia leaves the agency - or resigns her commission, moves, or is removed - the journal does not simply stay in a file cabinet by the manager's grace. It must be retained for the statutory period (roughly ten years after the last entry) and then delivered to the custodian the statute designates; practitioners should confirm the current destination with the Department of State before transferring it. Leaving it in an office where no notary controls it invites loss, alteration, and unauthorized access.
Practical response. Nadia can say: 'I'll complete the three entries now - it takes four minutes - and the journal travels with me when I go; here is the statute.' If the manager persists, she should escalate in writing and preserve a copy of her own entries. A notary cannot delegate her statutory duties to her supervisor's schedule.