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Notary Signing Agent Document FAQ: Notice of Right to Cancel

Notice Of Right To Cancel detail
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Updated 2-21-24. Notary Signing Agents must deal with many different documents during loan signings. Some require special instructions. In this article, we answer frequently asked questions about the Notice of Right to Cancel (NRTC) form.

What is the purpose of a Notice of Right to Cancel form?

Under federal law, some — but not all — mortgages include a right of rescission, which gives the borrower 3 business days following the signing of a loan document package to review the terms of the transaction and cancel the transaction. The rescission period starts the first business day following the date of signing  and ends at midnight on the third business day. Sundays and federal holidays do not count toward the rescission period.

If a mortgage transaction includes a rescission period, the borrower will be provided with a Notice of Right to Cancel informing them of their right to rescind the loan, the dates of the rescission period, and instructions how to cancel.

Are there other terms for a Notice of Right to Cancel form?

Yes. Depending on the lender, a Notice of Right to Cancel may be titled “Notice of Right of Rescission” or “Notice of Your Right to Cancel Credit Transaction Secured by Your Home” or possibly by other names.

What types of loan document packages include a Notice of Right to Cancel form?

Examples of loans with a Notice of Right to Cancel form include refinance loans in which the borrower is changing lenders; home equity loans and lines of credit and “cash-out” refinance loans (loans for more than the current loan balance and taking the difference in cash) with a different lender.

Mortgage loans without a Notice of Right to Cancel form include “purchase” loans used to buy a house (aka purchase transactions), refinance loans with the same lender, loans from state agencies and loans for homes that are not a primary residence (vacation homes and income properties).

Does a Notice of Right to Cancel form require notarization?

No.

What are the Signing Agent's responsibilities with respect to the Notice of Right to Cancel form?

According to federal regulation, the Signing Agent must print out and provide two copies of the NRTC form for each borrower (12 C.F.R. 1026.23[b][1]). The Signing Agent must print out an additional copy of the form for each borrower to sign at the loan signing appointment and return with the completed loan document package. If a lender requires the Signing Agent to provide additional copies of the NRTC to borrowers and return additional signed copies of the NRTC to the lender, the Signing Agent should comply.

What if the Applicable Dates are preprinted on the NRTC?

If the rescission dates are already filled in on the NRTC form, the Signing Agent must also check to confirm the rescission dates on the form. A rescission calendar is available online to help Signing Agents confirm the rescission dates are accurate. If the rescission dates have not been filled in, the Signing Agent will need to complete the correct dates in the form using a rescission calendar.

David Thun is the Assistant Managing Editor with the National Notary Association.


Related Articles:

Notary Signing Agent Document FAQ: Signature and Name Affidavits

Notary Signing Agent Document FAQ: Occupancy Affidavits


Additional Resources:

The Notary Signing Agent’s Loan Documents Sourcebook


26 Comments

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Alan Rosenthal

13 Jan 2020

Thank you for this article! I have 2 questions. 1) If the dates are filled in, but they appear to not allow for Sundays and Holidays for the 3 business days, (and we can't get in touch with the lender as is sometimes the case). are you advising that we are to make changes that conform to the calendar? 2) Generally, we are making a client copy of the docs to leave with the signer. These, of course, are unsigned. Often, there are 3, 4, 5, 6, copies of the Notice of Right to Cancel. I've been leaving the unsigned 2 or more copies (along with the rest of their client copy of the package) with the signer and returning all signed docs to the lender or contracting company. Are we supposed to leave signed notices with the signer? Or simply allow them to get copies of all executed docs from their lender? Thanks!

National Notary Association

13 Jan 2020

Hi Alan. To help us answer your question, can you please tell us what state you are commissioned in? If you need an answer right away, you can also contact our NNA Hotline Team at hotline@nationalnotary.org. If you are not an NNA member, they will be happy to answer one complementary question.

Mike Holden

13 Jan 2020

I was told by a loan official that all types of refinancing loans etc. Even if it is not a primary residence, such as a rental property, can be canceled within 3 business days. They told me the the Right of Recision form is not required to be in the documents.

Lisa Bittner

13 Jan 2020

Thank you, I hope everyone reads this, we find this still the most elusive document.

Ginny

13 Feb 2020

What if a document is already notarized and signed by the notary before you are asked to sign it. Will it hold up in a lease agreement? Can the notary be penalized for doing this?

National Notary Association

14 Feb 2020

Based on what you’ve described, we think it would be best if you contacted our Hotline team by phone and provided them with a more detailed description of the situation. The NNA Hotline: 1-888-876-0827 Mon – Fri: 5:00 a.m. – 7:00 p.m. (PT) Saturday: 5:00 a.m. – 5:00 p.m. (PT) If you’re not an NNA Member or Hotline Subscriber, they will provide you with a one-time courtesy call.

pearl_pledge@yahoo.com

20 Sep 2020

I am a Florida Notary Loan Signing Agent. Where do I get a copy of Notice of Right to Cancel document?

National Notary Association

22 Sep 2020

Hello. A Notice of Right to Cancel document is normally provided as part of a loan document package for a loan signing assignment. If you are looking for a sample form, you can click the image in the article above to open a printable PDF of a sample document.

Timothy So

03 Dec 2020

On the bottom of this Notice of right to cancel, do the borrowers also date on the signing date?

National Notary Association

04 Dec 2020

Based on what you’ve described, we think it would be best if you contacted our Hotline team by phone and provided them with a more detailed description of the situation. The NNA Hotline: 1-888-876-0827 Mon – Fri: 5:00 a.m. – 7:00 p.m. (PT) Saturday: 5:00 a.m. – 5:00 p.m. (PT) If you’re not an NNA Member or Hotline Subscriber, they will provide you with a one-time courtesy call.

rlsnotarialservices@gmail.com

12 Dec 2020

There is much confusion concerning the RTC. Some notaries say "send one signed back to title" and leave 'signed' ones with borrowers. Others say "send all three" and leave blanks with borrowers. Why would you leave 'signed' RTC with borrower when they have signed the bottom and not part where they sign to rescind? So, if we receive three copies, do we have borrower sign all three and do we send all three back and leave blanks with borrower?

National Notary Association

04 Jan 2021

Based on what you’ve described, we think it would be best if you contacted our Hotline team by phone and provided them with a more detailed description of the situation. The NNA Hotline: 1-888-876-0827 Mon – Fri: 5:00 a.m. – 7:00 p.m. (PT) Saturday: 5:00 a.m. – 5:00 p.m. (PT) If you’re not an NNA Member or Hotline Subscriber, they will provide you with a one-time courtesy call.

Diane Gon

23 Dec 2020

In the state of Washington - What happens If the pre printed dates show an extra date (signed 12/22/2020 but RTC shows ends 12/28/2020)?

National Notary Association

04 Jan 2021

Based on what you’ve described, we think it would be best if you contacted our Hotline team by phone and provided them with a more detailed description of the situation. The NNA Hotline: 1-888-876-0827 Mon – Fri: 5:00 a.m. – 7:00 p.m. (PT) Saturday: 5:00 a.m. – 5:00 p.m. (PT) If you’re not an NNA Member or Hotline Subscriber, they will provide you with a one-time courtesy call.

CHERYL rICHMAN

02 Mar 2021

Which dates will never appear on the Notice Right to Cancel? a. Notarization date, b. transaction date, c. end of recession date, d. document preparation date. I have been asked and I can find the correct answer. Thank you cheri

Ann Kankaanpaa

26 Jul 2021

When your loan docs have a blank RTC spot for the transaction date of the signing and a 2nd blank spot for the rescission date can the notary fill in those dates and explain to the signer what the dates mean to the signers? Then the signers initial the notaries hand written dates. The signers would finish the RTC by signing the signature line and dating it. I was notified that notaries cannot EVER fill in the dates and I could be sued for this. I was not aware that I could never fill in the dates for the RTC. If you could fill me in on this I would greatly be appreciated.

National Notary Association

27 Jul 2021

Based on what you’ve described, we think it would be best if you contacted our Hotline team by phone and provided them with a more detailed description of the situation. The NNA Hotline: 1-888-876-0827 Mon – Fri: 5:00 a.m. – 7:00 p.m. (PT) Saturday: 5:00 a.m. – 5:00 p.m. (PT) If you’re not an NNA Member or Hotline Subscriber, they will provide you with a one-time courtesy call.

Sylvia Headley

16 Aug 2021

IN Montana, in a purchase, the buyer receives a right to cancel. The seller has already closed. When does the money move? Before, during or after the RTC has expired?

National Notary Association

17 Aug 2021

Hello. That is a question that would need to be answered by the lender.

Dawn

07 Sep 2021

Do first time homebuyers have r ight to cancel. I got a usda loan thru a bank and I was misled by the realtors and the condition of the home was hidden and not disclosed to me. Is there anyway out of this. I closed on the home already.

National Notary Association

10 Sep 2021

Hello. We are sorry, but that is a legal question we aren't authorized to answer. You would need to speak to a qualified attorney to ask for legal advice regarding your situation.

Olive

23 Mar 2022

It is commonly called "right of recission". It means you can change your mind.

Kristin

02 Aug 2022

As a past escrow assistant in CA, besides telling notaries how many copies and the opportunities with wrong dates. You may want to educate them on WHERE on the form to have the client initial the printed date and then where to fill in the date. My husband is a loan officer, and the mobile notary in LA missed this and they had to come back to client to get them to add the date in the correct space. Maybe even remind them to examine the docs when signing is done while the client is there. Luckily this escrow still closed on time and they kept their rate.

Carol Jane Bakhus

08 Jan 2024

Thank you to all contributors. I find this forum very helpful!

Fernnelia Payne

08 Jan 2024

Regarding the right to cancel; I understand 3 copies are in the package, 2 to leave with client. The other is returned back to the mortgage company. However when I perform IPEN and RON signings why is there still 3 copies for clients to sign electronic when everything is electronic file automatically, and we can’t leave them a hard copy? Suggest verbiage should be changed to reflect Right To Cancel for electronic documents.

beverly Haley

08 Feb 2024

I need a document cancel report

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