April 2016 - Notary Blog - Signing Tips, Marketing Tips, General Notary Advice - 123notary.com
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April 30, 2016

Should you study loan documents, or get a neck tattoo?

Filed under: Humorous Posts — Tags: , , — admin @ 12:55 am

Notaries are by nature very short-sighted people. If business is good this month, then they assume that for the rest of their life that things will stay the same. Notaries get all bent out of shape when anything changes, because they want everything to be the same. The only changes they will accept are lower prices and higher income. But, even if you give them lower prices, they will still complain because, “why didn’t you give me a better price before?” The problem with this short-term way of thought is that the world doesn’t stay the same, and certain choices you make will help you or haunt you for the rest of your life or commission (whichever comes first.) Here is a tale of three Notaries and the choices they made. Forgive me if parts of it resemble a Jack in the Box commercial.

Should you get 123notary certified, take the next signing, or get a neck tattoo? It might seem like an obvious choice to you, but it was not to Jim.

Notary #1
Jim decided to get a neck tattoo. Sure, he had heard about the benefits of 123notary.com notary certification. But, he didn’t think he “needed” it because companies were hiring him. He didn’t grasp the concept of being hired more, or being possibly paid more. He only understood that he made enough money for the basic necessities such as: Putting food on the table, beer, and getting neck tattoos. His tattoo set him back $217.00. But, there’s more. Jim didn’t realize before he got his neck tattoo that his social life might be affected by his decision. He lost half of his friends due to his neck tattoo. But, on a brighter note, he gained some new friends who were more understanding of his decision. His new friends took him on a ride on their Harley and introduced him to new and exciting substances that Jim would never have found out about otherwise. Jim’s Notary business suffered because of his neck tatto as well. He lost 40% of his business which ended up costing him $5613.00 over the course of his first year in business. Maybe Jim’s decision was not the best, but who am I to judge?

Notary #2
Shelly wanted to get 123notary certified, but every time she wanted to study, something got in the way. A signing would be offered to her, or a birthday party. It wasn’t that she didn’t want to study. She realized certification would help her in the long run, but giving up a $90 signing seemed like a waste of income potential, and Shelly didn’t like to waste any opportunity. Years went by, but Shelly continued to stay busy.

Notary #3
Tammy had listened to what Jeremy had said on the phone.

Jeremy – “123notary certification doubles your jobs from your listing on 123notary.com on average. Results may vary from individual to individual though. If you get $317.00 more business per month as a result of your 123notary certification which is a reasonable estimate if you have a higher placed listing, over the course of 10 years, you would get $38,000 extra business. It might take you 10 hours to study for our certification exam. So, you could say that each hour of studying is worth $3800 in that case. Of the things that make you “too busy” to study for our test, which of them is worth $3800 per hour in long term revenue?”

Tammy – “Hmm, that is a really good point. I never thought about it like that. I believe in prioritizing. I am going to put everything on the side and study right now!”

A week later, Tammy had passed our exam and was getting more business! But, 10 years later Tammy met Jim at a bar. Jim explained how he had lost everything. Nobody wanted to hire him, his friends had all died of overdoses and motorcycle crashes, and his life was horrible. Shelly happened to show up at the bar and explained how business had taken a sudden downturn. Instead of studying and actually trying to know something, she quit and got a job. Meanwhile, Tammy had gotten Elite certified by 123notary, bought five top spots, and was making 100K+ per year at her Notary business. Of the three, it is clear the education wins the game and Tammy prioritized her time and strategized!

You might also like:

More Notaries are passing our test — it’s magic
http://blog.123notary.com/?p=16725

Here is my proof of how slow the industry has been
http://blog.123notary.com/?p=16630

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April 29, 2016

Notary Amusement Park

Filed under: Virtual Comedy Themes — Tags: , , , , , — admin @ 7:36 am

Have you ever been to Notary Land, or ever wanted to? Well, now is your chance to know all about it without leaving home, and without having to purchase a ticket.

The Stamp Room
The stamp room is a room filled with all types of stamps. Large stamps, small ones, microscopic stamps, and more. There are even stamp robots that walk around the room answering notorial questions. If they can’t answer a particular question, they are trained to call Siri.

The Embosser Wheel
Spin the embosser wheel and win a prize. The problem is that you have to sign for your prize and get that signature notarized. You can also throw a ball and knock over one of the stuffed notary seals. For Mexican Notaries with kids, you can get a Notary seal shaped pinata. When you bust the pinata open, you’ll get notary shaped chocolates falling out.

The jRobot
This robot is a Notary Public. It can do any Notary act better than most humans do. The problem is that it wasn’t programmed to laugh at jokes.

“You know a funny thing happened to me on the way over here today. I ran a yellow light and the guy right in front of me one lane over stopped next to me at the red light. He asked me why I didn’t run this red light too. I said I was saving this one for you”

“I find that statement highly illogical” (in a monotone)

The Hall of Notaries
Then enter the hall of notaries where you can see famous notaries from different states who lived throughout the ages. You can see their achievements, and see where a few of them went wrong. Learn about the Virginia Notary who was investigated by the FBI for notarizing a terrorist with a stolen or fake ID here. Also, you can learn about the first American Notaries who helped the founding fathers get the Declaration of Independence notarized. You might not know this, but the notary for that signing was actually late to his appointment because he double booked, and then got stuck in traffic behind a really wide ox-cart.

Mickey Mouse Notarizations
Tired of dealing with Mickey Mouse Notaries who don’t know what they are doing? Well, at our amusement park, you can get a Mickey Mouse Notary from someone who does know what they are doing — and in a high pitched voice too. He will check your ID, make you sign a fur coated journal, and stamp your document. Just don’t be upset when you find out his fur boots are shaped like Notary seals.

The Gift Shop
Get Notary T-shirts at the Notary gift shop. Some shirts have notary seals, others say, “I love 123notary.” There is another that says, “At 123notary, you’re more than just a number, but we’re not.” For women they have a t-shirt that says, “I love being a Notary.” And another that says, “I’m not your husband’s mistress, I’m the Notary.” You can also get Notary seal souvenirs, Notary chocolates with huckleberry filling, and Notary magnets for your fridge.

Finish it off with some funnel cake
Most amusement parks have funnel cake. But, can they make the cake look like a signature? At the Notary amusement park they can! You can get it with bananas, blueberries, strawberries, whipped cream and cinnamon.

You might also like:

Welcome to the Notary Casino
http://blog.123notary.com/?p=15255

Welcome to the Notary Zoo
http://blog.123notary.com/?p=15994

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April 28, 2016

Waiting for Santa on a Christmas Signing & two other stories

Filed under: General Stories — Tags: , , — admin @ 7:22 am

A signing from Christmas past
Well, in this story, Santa had already came. The Notary was at the signer’s house waiting for the signers. The Notary had a list and knew if the signers had been good or bad. The reality was that the couple signing was flying in from another city and were stuck at the airport. They asked the Notary if he could wait for them to get home. The Notary foolishly agreed.

Now, if I were the Notary, I would only have agreed if the borrower’s could have called their neighbors and had me in for some glugg. I don’t even know what that is, but Swedish people drink it for Christmas. Eggnog would do the trick too. In any case, the Notary waited for a really long time. By the time the signers got home and signed the loan, five hours had gone by. Fortunately the signing was in California where it is not that cold. I think the Notary could have added to the drama by parking a fake sleigh in the front lawn.

Drunk and disorderly borrowers
I had a situation come up during one of my notary signings where I didn’t want to do any notary signings for 6 months. I didn’t want to do any notary work at all as a result of this signing. I went to a house where I was in a really uncomfortable situation where everyone there was really drunk. I felt really threatened, and not safe. I walked into the home and immediately felt like leaving. The lending company that sent me had no idea about this family’s drinking situation when I called them afterwards to tell them what happened. All I know is that after this situation, I call the clients and really talk to them at length to get a feel for what they are like. I ask lots of questions. I get as much information as I can about the signing and about them. First impressions really count, and if you walk into a situation and your gut tells you to leave, LEAVE! Bail on the signing immediately if you don’t feel safe. I am more cautious now after that signing, and I think it’s really important to always be aware of your surroundings, the people you are with, to always have an exit strategy, and to not be afraid to immediately walk out if it doesn’t feel right!

They had gone to the same high school as my deceased son
I had a closing with a family at the end of last year in the city I live in that was very interesting and heartwarming. We talked a lot during the signing and found that we had a lot of similarities in common, including the fact that most of the family’s children had gone to the same high school as my deceased son. When the mother asked who my son was and I told her his name, she immediately started screaming and calling for her daughter. My son had died 5 years earlier in an accident. Her daughter was classmates with my son and knew him. So I spoke to the daughter and the mother and found out that the mother’s sister’s son had just died suddenly. They asked me if I would be willing to reach out to her and speak to her and help her through the grieving process because I knew what that was like. My heart hurt for them and so of course I said yes, and I did just that. We’ve all become friends since this signing, and I’m glad that I was able to help them in more ways than just being a notary.

You might also like:

What have you signed for me lately?
http://blog.123notary.com/?p=16197

Notarizing at a blind man’s home
http://blog.123notary.com/?p=16132

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April 27, 2016

Notarizing at a blind man’s home & other stories

Filed under: General Stories — Tags: , — admin @ 7:21 am

The blind man
I got a call for a notarization at the home of a blind man who lived by himself. When I spoke to him, I asked if he had someone else that he’d like there to help him, and he said, “ Oh no, I’ll be fine.” so I showed up at the signing prepared. I read through the entire document out loud so that he could hear everything in it, and I just put his finger down where he was to sign. His mother had just died, and he was needing to notarize documents so that he could acquire his home. I was quite impressed with his independence and capabilities of living alone. I decided to do the signing as a public service, and I was so happy to help him.

I once had a signing done on two tree trunks outside. The house was so dirty he was too embarrassed to have me go inside. So he insisted on doing it outside. Luckily it was a sunny day with no sign of rain!

Woman’s Jail
I had a really difficult signing to do at the women’s jail. When I got to the facility, the sheriff met me, and took me to a young Latina woman who was signing her life to her child. Her two year old was living with family members, and to make matters trickier, she was pregnant while in jail. It was really heartbreaking to see what was happening to her and her family.

Another time when I was at the same women’s facility, I had a signing involving a woman who had been in the US since she was 6 months old from Mexico. She was now in her 40’s and had gotten in trouble with drugs and was about to be deported because she was an unregistered resident. Prior to her arrest, she happened to also win a large jackpot at a local casino, so her husband was trying to get access to the money to help get her out of jail and keep her in the US. When I arrived there, the husband met me with her id, and the guards were being really awful. They made us wait a really long time before we were able to see her. Her husband was beside himself and was desperate to help her. The release of the jackpot money was in her name and her mother’s name, and the casino had been holding it, so he wanted it to be released to him so that he could hire a lawyer. Unfortunately he stiffed me my signing fee so I never heard from him or about what had ended up happening.

The retired general
I had a signing once with a retired general. He was sharp in mind, but tired, ill, and in a diaper. The entire 90 page document signing was an effort so I told him that I would dance for him if he got bored, which he chuckled at. I felt bad that he had to do the signing since he was so ill, but I did my best to cheer him up and help him get through it quickly so that he could rest.

I had an unusual signing in a house once where the wife was downstairs, and the husband was upstairs and they didn’t want to sit together in one location to get it done. So I got the wife to sign everything first, and then went upstairs and had the husband sign afterwards. The husband had a frightening looking cantaloupe sized boil on his right hand that looked super painful. I had to sterilize everything afterwards after the signing!

You might also like:

Notarizing a voice
http://blog.123notary.com/?p=2653

Sherlock Holmes Notary Public
http://blog.123notary.com/?p=8908

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April 26, 2016

The Signature Name Affidavit

The Signature/Name Affidavit
It is most likely that you are not processing this simple form properly. First, the good news; of all the forms in various loan packages this one is probably one of the most uniform. There really is little variation in how this form is structured. I will get to where most “go wrong”; but first a bit about the purpose and structure of the SNA.

The package comes from many sources. There are bank docs, title docs, escrow docs and perhaps some from other sources. It’s a virtual certainty that the borrower name will have some slight variation on documents. Of course the key name is the one on the ID and that is the name that you will notarize; we all know that. But, how about the name variations present in the package? This form is used to state, under oath, that the affiant is “also” known as. It’s a one way form. It can only be used to add variations to the notarized name as proven. It cannot be used to “prove”, for notarization purposes a name that does not match the ID presented.

The first entry is the legal name, which I define as what is on the ID. Thus, if the middle name is on that line it must be on the ID. If, for example the middle name is NOT on the ID, it should be redacted from the top line (proven name only) and that name “demoted” to an “also known as” line in the second area. Yes, the 3 part name is their legal name, BUT – as it was not proven to me I cannot notarize it. If the ID has only the middle initial, that is the “first line” entry. They can “acquire” the middle name in full as an “also known as” in a subsequent entry.

All subsequent entries (AKAs) should include variations, including but not limited to maiden names. The most common variations are the inclusion and omission of middle initials. One approach to completing the form is to keep it on the table while processing other documents. Add to the AKA section each name variation as noticed. Ask the borrower to print and sign the AKA in parallel to processing the bulk of the package. The printed name on the left will have the variation; usually the “matching” signature on the right will be the same for each entry.

The SNA can be used in court, along with a handwriting expert; to determine a signature is authentic on a document. As the signatures were witnessed by a notary, they can be accepted as valid when comparing to a different document. For this reason it’s a good practice to N/A any unused AKA lines; so subsequent names / signatures cannot be added; do you do that?

At the start of this entry I said you probably are not processing this properly, now to prove that statement. After the AKAs there is usually a statement “and that (usually filled in with the preprinted AKA(s)) are one and the same person”. However, you probably added one or more names to the AKA entries, and had the borrower sign on the right. What you might be overlooking is the need to ALSO put the added AKAs to the statement at the bottom! Take a look at an AKA form; there is a reason that they left plenty of room. That section is often overlooked!

It’s a signing, not a closing for most of us. We are there to collect signatures and initials. It’s rare for ALL the docs to have precisely the same name; rarer still for that name to be exactly what is on the presented ID. Proper completion of the SNA is mandatory, and avoiding a redraw will mark you as both a hero and a skilled professional. But don’t go overboard; adding your own SNA is probably not a good idea. If you need one and it was not supplied, call for “what to do”!

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You might also like:

Ken’s tips for the Closing Disclosure
http://blog.123notary.com/?p=17116

A comprehensive guide to Deeds
http://blog.123notary.com/?p=16285

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April 25, 2016

123notary’s comprehensive guide to getting reviews

To do well on 123notary, you need our certification (not someone else’s,) a good notes section on your profile, and a few good reviews. You don’t need a million reviews (although Ken in NYC thinks he does and has close to a million now.) But, at least one solid review every quarter will keep you far ahead of the game. The catch is how to get reviews, how to ask for them, who to ask, when, and what else to do? Here are some pointers, and then the articles listed below will keep you entertained for the rest of the evening!

1. Get a new review at least once per quarter.
You don’t need a new review every week, just once every few months. This will keep you ahead of the competition in most cases, or at least not far behind if you live where the real review sharks are. Ken has over 400 reviews now, so competing with him will be impossible. But, doing your best will impress all.

2. Understand the 8% rule
Only 8% of people you ask will give you a review. You might have better luck if you deliver stellar service, show up on time, and offer to do extra at no cost. You get more by giving more without asking for return, so give to charity, help thy neighbor, and do extra for your Notary clients.

3. Only ask those who praise you
It is a waste of time to ask for reviews from those who didn’t like your work. Ask those who liked your work and ask right after they say how much they liked your work.

4. Individuals are easier to get reviews from than title & escrow or signing companies.
Signing companies and big companies that hire many Notaries are bombarded with requests for reviews. Yes, ask them, but don’t base your success at getting reviews on the big guys. You stand a 3% chance of getting a review. If this means you should accept a few jobs from regular clients who just want an Affidavit notarized, it might be a good idea as reviews are life and death.

5. Email a link
It is difficult for people to maneouver 123notary. There are too many pages, and too much going on. Make their life simple and email a link to your review page. Ask for their email and send a link. If they can’t find the review page, they won’t write a review.

6. Don’t get three reviews the same day
Many Notaries do this and it looks tacky. They get three reviews within hours of each other and then no reviews for years. If you ask a list of people for reviews, then spread it out over time. If we think your reviews are fake or that you posted them yourself, you are in trouble!

7. Old reviews lose their steam
If you have all of your reviews from 2012, and no new ones, you will get as much business as if you didn’t have any reviews. Keep your reviews current if you want to get business.

8. Five or Six reviews doubles your business!
What? Oh my God! Only five or six? That might mean asking eighty or so people. But, the benefits of these reviews will last for years. Imagine paying 123notary the same amount of money, but getting double the output from your listing, plus having more pride!

Review oriented articles you should read

5-6 reviews doubles your business!
http://blog.123notary.com/?p=8484

Do you have reviews? Are they old?
http://blog.123notary.com/?p=15889

Don’t ask for a review at the wrong time!
http://blog.123notary.com/?p=15800

Testimonials about how good our review system is!
http://blog.123notary.com/?p=3902

How to write an email to ask for a review
http://blog.123notary.com/?p=15800

He got 7 reviews the same day and I suspected fraud!
http://blog.123notary.com/?p=14186

Removing a negative review for a Notary
http://blog.123notary.com/?p=13622

If movie reviews get up to four stars, why not Notary reviews?
http://blog.123notary.com/?p=8714

Word of mouse is important
http://blog.123notary.com/?p=8827

How many reviews makes a difference?
http://blog.123notary.com/?p=1148

Fake reviews, how do I know they are fake?
http://blog.123notary.com/?p=4211

Reviews from Title companies
http://blog.123notary.com/?p=4176

The technique — getting reviews
http://blog.123notary.com/?p=2625

—————————————–
Tips for your notes section
—————————————–

What to write in your notes section
http://blog.123notary.com/?p=6651

You’re Unique — you don’t say (in your notes section)
http://blog.123notary.com/?p=13170

10 quick changes to your notes that can double your calls!
http://blog.123notary.com/?p=4499

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April 22, 2016

The (Sleezy) Notary Motel

Filed under: Virtual Comedy Themes — Tags: , , — admin @ 7:08 am

We wrote about the Notary Hotel. That was one of most popular blog entries ever. But, what about Notary Motel. It’s just not as much fun at all. Imagine a sleezy Notary Motel. The clerk yells, “You have to be out of here by 10:30AM whether you are done signing or not.” The staff are always on the lookout for fake ID and compare all ID’s to the DMV’s database. This motel smelled like smoke in every room even though there were no smoking signs. Every time a car parked in the central lot, you could hear them slam their doors. Worse yet, I learned that in room 202, a Notary was turning signings in her room. There goes the neighborhood. There were people going in and out of that room all night long. One guy was in such a hurry to get out of there, he left his signatures hanging out as he exited the building.

SIGNER: Doing my signing here is terrible. What is that pounding noise on the wall.

NOTARY: Hmm, maybe they have a gym in the next room. Having fitness rooms is so popular these days.

SIGNER: The one thing I do like is that the parking lot in front looks like a Notary stamp. It is rectangular, the perimeter is very geometric with all of the parking spaces exactly in place. And in the middle it says the state, county, and the motel’s commission #.

NOTARY: Hmm, I didn’t notice that. Oh, I hear another noise coming from outside. Oh look, it is another Notary wearing wife beaters chasing his client into the parking lot.

OTHER NOTARY: Hey, sign this paper or else I’m leaving buddy.

OTHER SIGNER: Fine, take it and stuff it.

OTHER NOTARY: You owe me a travel fee. I hope you got cash!

OTHER SIGNER: I’m leaving.

SIGNER: Boy, what a place this Notary Motel is. I think we would have been much better off having our signing in the breakfast room of the Notary Hotel having one of those embossed waffles and then going to one of their signature rooms.

NOTARY: Yes, if we lived in a perfect world. But, if we lived in a perfect world, nobody would have to go to Notary Hell when they died either.

SIGNER: Good point. But, they go there because they have been bad Notaries, which is not the fault of the world. Okay, I’m done signing.

NOTARY: Great, just make sure you don’t walk out with one of their towels. They’ve been ripped off so many times they put microchips in those things to track them.

SIGNER: I’m not that desperate. Hey, who’s that sleazy looking lady in the parking lot. She looks like she is on drugs or something.

LADY: $10 dollars for a signature. $5 dollars for half a signature. I’ll sign anything you want!

GUY: Hey baby, wanna do a signing? Hop in!

NOTARY: I think we need to get out of here. I didn’t know it was this bad!

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You might also like:

Welcome to the Notary Hotel
http://blog.123notary.com/?p=8822

Notary Oscars
http://blog.123notary.com/?p=16540

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April 21, 2016

$400,000 cash at a signing. Can I have some?

$400,000 cash
I went to a closing and the client showed up with $400,000 cash, wanting to close on a condo without having his wife or anyone else know about it. I was really uncomfortable with it so I told him that we had to reschedule and I couldn’t take the cash. The man was really persistent, insisting that he trusted me with the money and that it would be ok but I refused. I had to get his wife to sign off on it anyway. I was shocked that had that much cash on hand!

Commentary from Jeremy. If the cash got stolen, lost in the mail, or stolen by the Lender or his helpers, there would be no way to track where the loss occured and the Notary could get blamed. Only the Mafia deals with that much cash unless they pay you electronically using MafPal.

3 refinances in a row!
I had a very convenient signing once where I had a bunch of refinances to do all in a row – the Dad, the Mom, and 3 brothers who all lived next door to each other. So I would do one, and move to the next house, and then the next house, and then the next! It was super convenient and I wish I had more signings like that!

A divorce signing
One Sunday, I had to do a signing with a husband and wife who were divorcing. The husband wanted to refinance his house as he still had payments on it. A brand new Porsche sat in the driveway. For some reason they refused to let me in the house! So we did the signing outside on a trash can while the father and mother in law stood watching us. The new car was totally worth more than the refinance! Such a funny situation!

As I live in the South, I once had a day where it was so humid in my breakfast sunroom, the ink on the papers printed on my ink jet printer started moving! I had to go to the library that day to print all my docs out! So when it’s hot and humid, don’t keep your ink jet printer in the sunroom!

You might also like:

Waiting for Santa on a Christmas Signing
http://blog.123notary.com/?p=16134

Married for 62 Years — an “golden” signing
http://blog.123notary.com/?p=16124

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April 20, 2016

Artificially inflated rates at a signing

My rate shouldn’t be this high!
I had a loan signing once for a lady where I looked at the documents and the interest rates printed seemed unusually high. Before I had her sign the papers, I asked her what the loan officer had told her, and she couldn’t remember what the interest rate was that she had been told. She rummaged around in her purse and found a slip of paper where she had written it down and it was definitely different from what was printed on the documents. I tried calling the lender and couldn’t reach them. I left a message but we never heard back from them so we cancelled the appointment and decided to reschedule. I took the docs with me as I left. Magically the next day, new documents showed up with the correct interest rates despite the fact that no phone call ever came through from the loan officer. We made an appointment and signed the next day. I was so glad for her that we had caught that mistake and got it corrected!

Falsely accused of murder
I had a jail signing where a woman was in jail and her fiancee was fighting on her behalf to get her out. Someone had gotten murdered and she was incarcerated, but she was actually innocent and happened to be in the wrong place at the wrong time. The fiancee needed a power of attorney, and he was so well dressed that the guards thought he was a lawyer and he came in with me to see her to get the signing done. When they saw each other, they spoke and he just held and pressed her hand. She was so depressed and upset and sad. The jail had over medicated and sedated her for her depression which made the whole situation ever more upsetting. I felt really bad for them.

The vindaloo signing
I had a funny signing with a Caucasian woman and an East Indian man in my town. When I got there, the husband was quite grumpy because the title company had messed up the settlement statement. When I told him that my former husband was an East Indian man though, he suddenly lit up and got very excited! We went into the kitchen and he gave me a bunch of seasoning packets and told me where to buy the best lamb rack, and we talked about cooking. We ended up rescheduling the signing with the corrected documents and we ended up talking more about cooking then too and he sent me home with more food! It was a fun meeting!

An impersonator at a signing
I had a refinance once where I’m glad I listened to my intuition! There was a situation where the wife was bilingual, and the husband spoke only Spanish. She was the primary on the loan, and when I looked at the ids, hers looked definitely like her. Her husband’s id didn’t really look like the man sitting in front of me. He had a bandanna on that partially hid his head, and the picture looked similar, but I couldn’t really say that the id was really the same man in front of me. I was skeptical but I took the photograph at face value as the wife assured me that this was really him. I started to proceed with the signing. At some point though, the man in front of me suddenly said, “ There’s a problem. This doesn’t match.” referring to the documents. At that point I realized that this wasn’t her husband since he clearly understood and spoke English. It was a friend. Not her husband. So I immediately stopped the signing, told them we were done, and walked out the door. I was so thankful that I was able to stop it, and that I had it recorded in my journal. I called the agency immediately and let them know what had happened.

.

You might also like:

30 minute Islamic prayer break at a signing
http://blog.123notary.com/?p=16185

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April 19, 2016

Good Deed Bad Deed

A deed is a document that transfers ownership of real estate from grantor to grantee. As there are usually two parties involved, the grantee wants to “receive the most” and the grantor wants to “give the least”. For this reason there is a gradient of “what is given”, ranging from virtually nothing being assured, to virtually absolute assurance going to the grantee.

Quit Claim Deed – used to transfer whatever ownership the grantor may have, possibly none whatsoever due to a title flaw. Grantee has no recourse. It’s also used to change vesting errors when a spelling error is in the vesting. It makes no warranty whatsoever.

Fiduciary Deed – issued by an agent (trustee, guardian, executor) acting in official capacity. Only the authority of the agent is warranted, think Quit Claim by other than “owner”. Often used by estates, trusts, sheriffs sales.

Bargain and Sale Deed – similar to Quit Claim, but the property is being sold rather than just relinquished. It does not guarantee that sellers’ ownership of the property is free and clear. Often used to transfer court seized property where the title chain is uncertain.

Trust Deed / Deed of Trust – used to secure a mortgage or note. It gives the trustee (typically the bank) the right to sell the property if the borrower defaults.

Grant Deed – provides assurance that the grantor owns the property and has not previously sold the property. And that there are no liens or encumbrances (made by the grantor) unless disclosed in the deed. Essentially saying the property is free of debt (of or by the grantor).

Special/Limited Warranty Deed – the grantor warrants clear title except for issues that existed prior to the grantor taking possession or are mentioned in the deed. Essentially the grantor is giving assurance that they did nothing to hinder clear title transfer. But, issues typically unknown to seller regarding title are not covered. Usually title insurance is required with the S/L WD to obtain bank approval for loans.

General Warranty Deed – Grantor conveys, without limitation, all of their right, title and interest to the property. Guaranteeing they are the rightful owner, property is free and clear of all encumbrances and debt (unless mentioned in deed). A key provision is that the grantor warrants the entire title chain, including issues prior to their taking possession to be clear, similar to title insurance. Grantor warrants having current title and possession.

Thus at one end of the spectrum is the quit claim deed, essentially saying “if it’s mine, it’s yours”; to the general warranty deed. With the GWD giving assurances as to clear ownership and the “Covenant of Quiet Enjoyment”. The COQE assuring the grantee will not be disturbed or dispossessed by a party having a lien or superior title. As is so often the case with legal documents, the devil is in the details. Fortunately, the title of the deed can quickly eliminate formats that are undesired. However, deeds are usually associated with purchases involving large sums of money, often the largest single purchase in a person’s lifetime. Many review the HUD, TIL, Note and Mortgage very carefully. But, they assume “a deed is a deed”. It’s best to have a skilled real estate attorney explain the deed prior to signing this important document.

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You might also like:

The Closing Disclosure
http://blog.123notary.com/?tag=closing-disclosure

The Signature Affidavit
http://blog.123notary.com/?tag=signature-affidavit

The Compliance Agreement
http://blog.123notary.com/?tag=compliance-agreement

Our string on Power of Attorney posts
http://blog.123notary.com/?tag=power-of-attorney

The Deed of Trust
http://blog.123notary.com/?tag=deed-of-trust

Affidavits — in general
http://blog.123notary.com/?tag=affidavit

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