A Notary Public is employed by a real estate firm. An agent from the firm asks the Notary to notarize a deed for a property sale where the Notary's spouse is the listing agent receiving a commission from the sale. The Notary's spouse is not a signer on the deed. What is the Notary's appropriate action?
- AProceed with the notarization, as the spouse is not a signer on the document.
- BRefuse to perform the notarization due to a disqualifying beneficial interest.
- CNotarize the document only if the Notary's spouse provides written consent for the notarization.
- DPerform the notarization, but disclose the spouse's involvement in the journal entry.
Show answer & explanationAnswer & explanation
Correct answer: B. 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. This includes situations where the Notary's spouse or registered domestic partner has such an interest, even if not a signer on the document. Receiving a commission from the sale constitutes a direct financial interest.
Why the other options are wrong
- A. The spouse's financial interest (commission) extends to the Notary, creating a disqualifying beneficial interest.
- C. Spousal consent is irrelevant to the legal disqualification based on beneficial interest.
- D. Disclosure does not negate a disqualifying interest; the notarization is still prohibited.
Spousal Disqualifying Interest
A Notary Public is disqualified from performing a notarization if their spouse or registered domestic partner has a direct financial or beneficial interest in the transaction described in the document, even if the spouse is not a signer.
- Notaries must be impartial.
- Spouse's direct financial/beneficial interest disqualifies Notary.
- Receiving a commission is a financial interest.
- Disqualification applies even if spouse isn't a signer.
Memory trick: If your partner profits, your Notary power drops its bits.