Senate Bill 292 establishes new rules to address deed fraud involving Alabama real property. The bill expands the discretionary authority of Alabama Notaries to assess signer competency, willingness, and awareness, and gives Notaries the option of refusing to perform a notarial act if they suspect fraud, coercion, incapacity, or deception. Additionally, the bill adds new safeguards specifically aimed at remote notarization fraud, requiring Notaries to refuse to perform notarial acts if the communication technology is not secure or if the Notary suspects deepfake impersonation. Curiously, Electronic Notaries must refuse to perform remote electronic notarial acts if the remotely located individual is incompetent, lacks understanding of the nature and consequences of the transaction, or is acting involuntarily, under duress, or under undue influence. The NNA believes this standard should apply uniformly to all Notaries irrespective of the mode of notarization (paper-based or electronic). The law should either grant both discretion to refuse or require both to assess these conditions and refuse when they are not satisfied.
Interestingly, Senate Bill 292 introduces, but does not expressly define, the term “remote electronic notarial act,” which in some jurisdictions means the remote notarization of electronic documents (“RON”). Alabama Notaries should be mindful that COA 36-20-73.1(g) requires a Notary’s original (wet ink) signature on all documents notarized for remotely located signers.