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What Notaries need to know about disqualifying interest



Maintaining impartiality is a cornerstone of every notarization, and any indication of bias or dishonesty can undermine public trust in a Notary's work. David Thun sheds light on the crucial concept of "disqualifying interest" and why Notaries must navigate it carefully.

Defining 'Disqualifying Interest': Disqualifying interest arises when a Notary's connection to the signer or the transaction could inappropriately influence their conduct during notarization. This could involve receiving material benefits from the notarized document, being married to the signer, or being a relative (e.g., sibling, child). The specifics vary by state law, and a short video is recommended for a clearer understanding.

Importance of Impartiality: Notaries are urged to act impartially consistently. The legality of a document could be contested if a party harmed by the notarization proves that the Notary's impartiality was compromised. Thun illustrates this with a scenario where a property owner faced substantial losses due to a Notary's compromised impartiality, as ruled by the West Virginia Supreme Court.

Notarizing with Personal Interest: Certain cases of disqualifying interest are apparent, such as a Notary notarizing their own signature. Generally, it's inappropriate to notarize a document in which the Notary is named or directly benefits. States may specify additional situations; for instance, Pennsylvania Notaries may have restrictions on taking an acknowledgment on a power of attorney document if named as an agent.

State-Specific Exceptions: While some states make specific exceptions, others broadly permit Notaries with financial interests to notarize transactions for their clients. Examples include Kansas and California allowing Notaries who are agents, employees, insurers, attorneys, escrow officers, or lenders to notarize transactions involving their clients.

Guidance for Notaries: Notaries are advised to check state laws before proceeding with a notarization if there's uncertainty about having a beneficial interest. In cases of doubt, seeking assistance from an impartial Notary is recommended to ensure a conflict-free notarization.

Notarizing for Family Members: State laws vary on notarizing for family members. Some states permit notarizing for any relative, while others impose restrictions. For instance, Arizona prohibits notarizing for the Notary's spouse. Florida restricts notarizing signatures of certain family members but allows conducting weddings for relatives. Nevada, with a more restrictive stance, includes various relatives and domestic partners in its prohibition.

In conclusion, Thun emphasizes the need to be aware of disqualifying interest to uphold the integrity of the notarization process. Notaries should be well-versed in state-specific regulations and seek guidance when in doubt to ensure ethical and unbiased notarizations.


 

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