Bad Notary habits that put your commission at risk

The bad news is that it’s easy for a Notary mistake to land you in legal or financial hot water. The good news is that in most cases, taking a few reasonable steps will keep you out of trouble.

Common Notary errors can expose Notaries and Signing Agents to serious risk. Fortunately, most of these problems are preventable with careful procedures and attention to detail. 

Here are some mistakes you should avoid:

1. Sloppy Notary journal entries. Poor Notary journal records can weaken your legal protection. 
2. Offering improper legal advice. Giving legal advice as a Notary may constitute unauthorized practice of law. 
3. Incomplete or incorrect Notary certificates. Errors on Notary certificates can invalidate notarizations. 
4. Signing Agents: Don’t harass signers for your payment. Notary Signing Agents should never contact borrowers directly for payment disputes. 

Sloppy Notary journal entries

Judges and juries form opinions about Notaries based on how records are kept in a Notary journal. Consequently, a poorly maintained journal with multiple cross-outs or otherwise illegible “chicken scratches,” a journal that omits information required by law or one that is sloppy or too disorganized to easily navigate, could readily be considered evidence of poor recordkeeping and therefore is unlikely to protect the Notary against accusations of negligence in a court of law if the Notary is sued. Make sure your journal entries are legible, organized, and ordered consecutively by date, allowing for easy access — even years down the line.

Offering improper legal advice

You should never offer unauthorized legal advice to your clients. Remember that even explaining documents to signers or telling them which type of notarial act to use crosses the line into unauthorized legal advice. If signers have questions or need advice, they should contact the agency that issued the documents or the court or office to which the documents are being sent.

Incomplete or incorrect Notary certificates

Whether it’s a missing venue on the Notary certificate, an illegible or smudged Notary seal, or a case of mismatching document signatures, incomplete or incorrect certificates can render a notarization invalid. In fact, courts have invalidated mortgages because the Notary did not put the name of the person signing the mortgage in the acknowledgment. A rejected notarization can, in turn, cause costly delays for your signers, potentially leading to a lawsuit against you. It’s worth your effort and time to carefully review every Notary certificate you complete for clarity, thoroughness and accuracy.

Signing Agents: Don’t harass signers for your payment

For Notary Signing Agents, the waiting game for payment can cause serious frustration — but going directly after the borrower can result in even more serious trouble for the NSA. All payment inquiries should be directed toward the contracting company that hired you, never the borrower, who, chances are, has already paid for the service as part of the loan fees.

Careful recordkeeping, accurate certificates, and professional boundaries are essential to reducing Notary risk. By following state laws, maintaining organized journals, and avoiding unauthorized legal advice, Notaries and Signing Agents can help protect themselves, their clients, and the integrity of the notarization process.

Related Articles:

5 steps to a proper notarization

5 common mistakes that can lead to legal problems

Additional Resources:

NNA Hotline

Notary Essentials