Notary · Prohibited Acts and Conflicts of Interest

Can a notary notarize a document if they have a personal financial interest in the transaction?

  1. A Yes, always
  2. B No — a notary cannot notarize any document in which they have a direct financial or beneficial interest, due to conflict of interest
  3. C Yes, but only with disclosure
  4. D Only with court approval

Why this is the answer

Notaries must be impartial; financial or beneficial interest creates a conflict that disqualifies the notary from acting. Prohibited examples: notarizing a deed where you are buying or selling the property; notarizing a will or trust where you are a beneficiary; notarizing a loan document where you are the borrower or lender; notarizing your own signature; notarizing a document benefiting your spouse, child, or other immediate family member (in most states). The interest must be direct and personal — a general employment relationship with one of the parties is usually not disqualifying, but a financial stake in the specific transaction is. When in doubt, refuse and refer the signer to another notary. The risk of notarizing with a conflict: (1) the notarial act may be invalid; (2) the notary can be sued for any loss caused; (3) the notary's commission can be revoked; (4) criminal charges in egregious cases. Disclosure does not cure the conflict in most states — refusal is the safe and correct answer.
Source: NNA Conflicts of Interest

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