SECTION 13: What Not To Do

Before we get into the specifics of the kinds of things a Notary Signing Agent must not do, let's go over the acts that all Notaries Public are prohibited from.

A Notary Public may not notarize a signature on a document under any of the following circumstances:

• A Notary may not notarize his or her own signature;
• A Notary may not notarize a blank document;
• A Notary may not notarize a signature on a document unless the Notary personally knows, or has satisfactory evidence that, the person whose signature is to be notarized is the individual who is described in and who is executing the instrument.
• A Notary may not notarize a signature on a document if:
  • The person whose signature being notarized is not in the presence of the Notary Public at the time the signature is notarized;
  • The Notary Public actually knows that the person signing the document has been adjudicated mentally incapacitated; or
  • If the Notary has a financial interest in or is a party to the underlying transaction (provided, however, as an employee, the Notary may notarize a signature for his or her employer as long as this employment does not constitute a financial interest in the transaction for the Notary);
• A Notary may not "give" or "loan" his or her notary public seal to anyone;
• A Notary may not act as a Notary Public if his or her commission has expired;
• A Notary may not perform a literal translation of the phrase, "Notary Public" into a language other than English in an advertisement for notarial services;
• A Notary may not supervise the making of a photocopy of an original document and attest to the trueness of the copy, and may not attest to the trueness of a photocopy of a public record if a copy can be made by another public official;
• If the Notary is performing notarization services for a person who is blind (legally, partially or totally), the Notary must not notarize the document(s) until having fully read the document(s) to the blind signatory;
• The Notary may not take the acknowledgment of a person who does not speak or understand the English language, unless the nature and effect of the instrument to be notarized is translated into a language which the person does understand;
• The Notary may not change anything in a document after it has been signed by anyone; and
• The Notary may not notarize a document that is incomplete or blank.

Some states prohibit a Notary from notarizing a signature if that signature belongs to the spouse, son, daughter, mother, or father of the Notary Public. Other states do not levy such restriction unless doing so would provide a direct financial or beneficial interest to the Notary Public.

Also, a Notary Public may not:

• Give legal advice, unless the Notary Public is a licensed attorney in that state;
• Prepare, draft, select, or give advice concerning documents;
• Take an acknowledgment of execution in lieu of an oath if an oath is required;
• Obtain or use a notary commission in a name other than the Notary's legal name;
• Overcharge for notarial services;
• Use a name or initial in signing certificates other than that by which the Notary Public is commissioned;
• Notarize a photograph;
• Notarize a copy of a birth certificate, or any other vital record or public record;
• Certify a translation of a document from one language into another;
• Provide signature guarantees (this duty is usually performed by officials in the banking and securities industry);
• Certify the authenticity of objects, such as art or sports memorabilia;
• Judge contests or certify contest results;
• Certify a person's residency or citizenship status; or
• Prepare legal documents unless you are an attorney licensed to practice in the state.

Having all that said, now let's go over some hazards that a Notary Signing Agent may run into during the normal course of a loan closing.

Blank Documents

You've already learned to scan the documents in the loan package for any blank or omitted information. If there are blank spaces that should be filled out with an "N/A" notation (Not Applicable), have the signer write "N/A" (or the applicable notation) in the blank space. You must never make any notation in a document other than what is required of your notarial signature and seal.

If you find any blank areas which should contain loan information, you must contact the signing service or lender immediately. If you did not find any blank areas upon your initial perusal of the documentation but at the loan signing, you notice an area where information is incomplete or omitted, you must contact the signing service or the lender immediately. Do not proceed with the closing any further. Remember, the bottom line is that you are responsible. The closing may even have to be rescheduled after the oversight has been corrected. If the error being corrected is not the Notary's fault, the lender or signing company should pay again for the additional signing - even if only one document is being completed.

If you have properly scanned the documents in the loan package and you notice that you are going to have to use any loose notarial certificates, do not prepare them and sign them beforehand. Have them available at your fingertips, but NEVER complete them ahead of time. One may, inadvertently, fall into the wrong hands and be used for a fraudulent purpose. Again, the bottom line is that you are responsible.

Dating Documents

Always verify the date on any document you are notarizing. Never backdate a document and never date a document in advance. Make certain the date of the document is not later than the date of the notarization.

Pre-Signed Documents

Never notarize a pre-signed notarial certificate. Never notarize a photocopied or faxed signature. If the borrower has received documents from the lender that need to be notarized and he/she printed them on thermo paper, do not notarize the signature. The ink on thermo paper fades and can smudge, making a document illegible.

Legal Advice

A Notary Signing Agent is bound by the same regulations as any Notary Public when it comes to providing legal advice – It is strictly prohibited. A Notary Signing Agent may identify specific documents for the borrower while pointing out relevant factors that are listed within the documents, witness signatures, administer oaths and affirmations, and notarize the documents required by the lender.

Since you will probably be the only person at the loan signing other than the borrower, if the borrower suddenly has a question he/she didn't think of before, he/she may be tempted to ask you. Remember, you're walking a fine line. You want to help the borrower and expedite the closing; however, you are not the loan officer. You cannot provide any advice or explanation of documents. You must defer the signer's questions to the loan officer.

Every company you work for will have their own policies regarding these types of situations. Make sure you know how the company would want you to handle the situation. Just do not ever jeopardize your status as a Notary Public.

If, for some reason, the borrower's question cannot be answered right away, it might be appropriate to remind the borrower of the three day right of rescission. This may alleviate the borrower's apprehension.

If the borrower wants the answer to the question before proceeding with the signings, contact the lender or signing company immediately deferring the borrower's request for an answer. Loan officers know when their loan signings are being conducted and usually make themselves available by phone, just in case.