California Notary Public ExamNotary Public Duties and AuthorityHard
A Notary Public is asked to notarize a document for a client. The client informs the Notary that they are a party to the transaction described in the document, and the Notary is also a party to the same transaction. What is the Notary's appropriate action?
- AAdvise the client that they can notarize the document for another party, but not for themselves.
- BPerform the notarization but disclose their involvement in the document's transaction in the journal entry.
- CRefuse to perform the notarization due to a disqualifying beneficial interest.
- DProceed with the notarization, ensuring all other notarial requirements are met.
Show answer & explanationAnswer & explanation
Correct answer: C. Refuse to perform the notarization due to a disqualifying beneficial interest.
A Notary Public is disqualified from performing a notarization if they have a direct financial or beneficial interest in the transaction. Being a party to the transaction described in the document creates such an interest, making the Notary unable to act impartially.
Why the other options are wrong
- A. The Notary is disqualified from notarizing any signature on that document if they are a party to the underlying transaction, not just their own.
- B. Disclosure does not cure a disqualifying interest; the notarization is still prohibited.
- D. Proceeding with a disqualifying interest is a violation of notarial law.
Disqualifying Beneficial Interest (Party)
A Notary Public is disqualified from performing a notarization if they are a party to the transaction described in the document, as this creates a direct beneficial interest.
- Notaries must be impartial.
- Being a 'party to the transaction' creates a direct beneficial interest.
- Such an interest disqualifies the Notary.
- The notarization must be refused.
Memory trick: If your interest is tied, your Notary seal must be denied.