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December 16, 2014

A forged document vs. a forged notary seal?

What if the document was forged.
Imagine that you are a notary public who just got in huge trouble for notarizing a forged document. It is not your responsibility to know that the document was forged. It is only your responsibility to know that the person who was documented as signing the document appeared before you, proved their identity, and signed the document before you notarized it.

Forged Identification
Or what if the ID used for the notarization was forged? You can still take journal thumbprints and that can get you off the legal hook a lot faster if you keep a record of those thumbprints. But, what about a forged notary seal?

E&O won’t help unless you made an error.
Some notaries think that since they have Errors & Omissions insurance that they will be covered. But, does E&O cover legal expenses? The real problem is that E&O will probably say that the notary didn’t make any errors — it was someone else who forged their seal. Therefore it is a criminal matter, and the notary in question is not at fault — providing you can prove that the notary seal indeed was forged.

If your notary seal was forged, how would you prove it?
My notary seal’s impression was copied onto an Acknowledgment form. The notary’s handwriting on the form didn’t match mine at all and they didn’t cross out the his/her/their or the (s) on the certificate either proving that they were not me, and most likely not a notary (at least not a good notary.) If the borders on the seal don’t match yours, that is another clue. If you don’t have a journal entry of the transaction, that might void the notarization entirely in certain states — not sure what the law says about that one. But, it could constitute proof that you didn’t do the notarization in question if there is no journal entry, assuming that you always keep a sequential journal entry of all notarial transactions.

What if you are sued?
Unfortunately, as a notary, if you are sued for fraud, or being involved with fraud, you could lose $20,000 in legal expenses only to be proven innocent. You lose, even if you win. E&O insurance won’t protect you if you are not at fault. So, if you are falsely accused because someone else did fraud including a seal forger, a corrupt Title Officer, or someone else, you can get in big trouble. It is best to try to reason with the plaintiff and prove to them through whatever evidence that you have that you are not one of the parties to be blamed. You can also tell them that you will counter sue for legal expenses and time lost if proven not guilty.

Identifying the fraud
One of the issues in catching a fraudulent impostor notary is that they are hard to catch. The only people who have seen them would be notary customers. Those customers would have found the person’s number online or in the yellow pages or through a referral. Notary clients very rarely check the ID of the notary, so the notary could be an impostor and get away with it for a while without being caught. But, why would an impostor notarize many people. Chances are that the impostor notary would be well acquainted with the individual who forged loan documents, or could be the same person which means that nobody would see him or catch him. If he forged the signature of the borrower as well, then it gets very complicated. Three forgeries in one! If they forge a notary seal, the forged seal might have the name of a real notary on it. In such a case, the real notary would be able to prove through his journal that he never notarized that forged document. Additionally, the forger would have to not only forge the signature of the borrower, but also of that particular notary which would require quite some skill. I always used an embosser that left a raised seal in the document. A fraud would have to be pretty clever to forge my seal and my embosser and use it like I did — and in the one case where my seal was forged, they didn’t have the brains to do it correctly and got caught (but, not necessarily prosecuted – or at least I was not informed of what happened after the fact.)

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Fraud & Forgery related to the Notary Profession
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An absurd forgery of MY notarization
http://blog.123notary.com/?p=19974

Facial recognition techniques can help you spot fake ID
http://blog.123notary.com/?p=20242

Penalties for notary misconduct and fraud
http://blog.123notary.com/?p=21315

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November 1, 2024

Understanding Notary Misconduct and Penalties

Filed under: Notary Mistakes — Tags: — Tom Wilkins @ 12:00 am

Knowing that a notary is bound by strict professional standards is essential when working with them. A notary’s role ensures the legality of important documents, but even minor misconduct can lead to severe penalties. For homeowners and business owners, understanding notary misconduct and penalties for legal non-compliance is key to protecting themselves and their transactions.

What is Notary Misconduct?

Notary misconduct occurs when a notary public violates the laws or ethical standards governing their role. This can happen unintentionally, through negligence, or intentionally, through fraud. Misconduct affects the legitimacy of the notarized documents. It can lead to significant legal and financial problems for the involved parties.

Common Types of Notary Misconduct

1. Failure to Verify Signer’s Identity

One of the most important duties of a notary is to confirm the signer’s identity. Misconduct occurs if a notary skips this step, risking fraud and invalidating the notarization.

2. Conflict of Interest

Notaries must remain impartial. When a notary has a personal or financial interest in a document, their neutrality is compromised, which can lead to disputes or potential penalties.

3. Inadequate Record-Keeping

Most states require notaries to keep a record, or journal, of each notarization. Failure to do so may result in misconduct accusations, as it can be challenging to verify transactions later if questions arise.

4. Failing to Administer an Oath or Affirmation

Certain notarizations require the signer to take an oath or affirmation. Skipping this crucial step is a form of misconduct and can lead to severe consequences for the document’s validity.

Understanding Penalties for Notary Misconduct

Penalties for notary misconduct vary based on the type and severity of the offense and local state laws. Understanding notary misconduct and penalties for legal non-compliance can help homeowners and business owners avoid issues with improperly notarized documents.

Civil Penalties

Civil penalties are commonly issued for misconduct, including fines or restitution payments to parties affected by the notary’s actions. If errors or negligence cause financial losses, a notary could be liable to compensate those impacted. Civil penalties stress accountability, mainly when misconduct results from a lack of proper diligence.

Criminal Penalties

Criminal penalties apply in cases of intentional fraud or deceit. For example, a notary who knowingly notarizes a forged document or falsifies a signature may face criminal charges. This can include jail time, substantial fines, or both. Criminal penalties are typically reserved for serious misconduct and aim to deter fraud in the notarization process.

Disciplinary Action

Disciplinary actions may include suspending or revoking a notary’s commission by the state licensing authority. These actions occur every day when misconduct is repeated or particularly severe. For instance, multiple complaints about a notary’s work can lead to a review and possible suspension to ensure that the integrity of notarizations is preserved.

Professional Liability

Many states require notaries to carry errors and omissions (E&O) insurance. This insurance covers claims arising from notary negligence, ensuring that the notary is financially protected if they’re held liable for losses caused by their actions. E&O insurance helps safeguard notaries and clients from the financial repercussions of mistakes.

How to Avoid Notary Misconduct

Avoiding notary misconduct starts with following best practices and understanding state-specific requirements. Both notaries and clients should take steps to ensure that notarizations are carried out lawfully.

For Notaries

  1. Verify identification Carefully: Always check identification thoroughly to confirm the signer’s identity and avoid fraud.
  2. Avoid Conflicts of Interest: Refuse notarizations where you may have a personal or financial interest.
  3. Keep Comprehensive Records: A well-kept journal can prevent disputes and prove compliance with notary laws.
  4. Stay Updated on State Laws: Notary requirements vary by state and can change over time. Staying informed about these laws helps avoid accidental misconduct.

For Clients

  1. Work with Reputable Notaries: Verify that the notary has a solid reputation and ask any necessary questions.
  2. Request Documentation: Clients may request records or copies of notarization journals for extra assurance.
  3. Watch for Red Flags: If a notary skips identification steps or fails to administer oaths when required, ask for proper procedures.

Safeguard Your Transactions

Understanding notary misconduct and penalties for legal non-compliance helps homeowners and business owners ensure the integrity of their transactions. Knowing common issues and legal consequences, you can better protect your documents and avoid unnecessary risks. To learn more about how notaries serve businesses, check out businesses that need notaries.

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October 18, 2024

Common Notary Mistakes That Can Hurt Your Practice

Filed under: Notary Public 101 — Tags: — Tom Wilkins @ 12:00 am

As a mobile notary, your success depends on accuracy, attention to detail, and adherence to legal standards. Even small mistakes can have serious consequences, including legal issues or damage to your reputation. Awareness of the common errors notaries make and how to avoid them will help protect your business and ensure you maintain high professionalism. Below are some of the most common mistakes notaries make and how to avoid them in practice.

Failure to Properly Identify Signers

One of the most important tasks for notaries is verifying the identity of the signer. Accepting expired or invalid IDs or relying on personal knowledge can result in fraudulent activity and legal disputes.

How to Avoid:

Always ensure the signer presents a valid, government-issued photo ID. If the ID is expired or inadequate, proceed once proper identification is provided. Even when you know the person, following identification rules to protect your practice is essential.

Poor Record-Keeping

Maintaining a thorough notary journal is essential, even if it’s not required in your state. Failing to document notarizations properly can expose you to legal challenges.

How to Avoid:

Record every notarization in a journal, noting the date, document type, signer’s information, and any additional details. This documentation protects you if a notarized document is ever questioned, ensuring you have an official record to back you up.

Overstepping Notary Authority

Notaries sometimes offer legal advice or explanations that are beyond their legal authority. This can lead to legal repercussions and harm your reputation.

How to Avoid:

Stay within your role of confirming the identity of signers and witnessing signatures. If a client has questions about the legal content of a document, refer them to an attorney. Never interpret documents or provide legal guidance.

Incorrect Notarial Certificates

Using the wrong notarial certificate or failing to complete it correctly can invalidate the notarization. This is one of the most common mistakes notaries make, and learning to avoid it in practice is essential for ensuring your notarizations are legally binding.

How to Avoid:

Before notarizing, ensure you’re using the correct certificate (acknowledgment, jurat, etc.) and fill out all the necessary fields, including the date, signer’s name, and notary seal. Taking time to double-check your work will prevent unnecessary mistakes.

Failure to Keep Up with State Laws

Notary laws vary by state, and they frequently change. Not staying current with these regulations can lead to compliance issues, potentially resulting in legal trouble or loss of commission.

How to Avoid:

Attend training sessions or subscribe to notary newsletters to stay informed about your state’s laws. Regularly update your knowledge to ensure compliance with current regulations.

Lack of Insurance and Bonds

Having the right insurance or bonds can protect you from financial risks. Even a minor error can lead to claims that could harm your business.

How to Avoid:

Invest in errors and omissions (E&O) insurance, even if it’s not mandatory in your state. This coverage protects you from financial claims in the event of a mistake. Additionally, ensure that you meet any bond requirements in your state.

Notarizing Incomplete Documents

Notarizing documents with blank spaces or incomplete information can lead to legal complications and potential fraud. This is a common mistake that can have serious consequences.

How to Avoid:

Only notarize a document that contains blank spaces or is complete. Review the document thoroughly before notarizing, and ask the signer to fill out any missing information. If you’re unsure, pause the notarization and seek clarification.

Safeguarding Your Practice

Avoiding these common mistakes notaries make and how to avoid them in practice is essential for protecting your business and maintaining a good reputation. Correctly identifying signers, keeping accurate records, staying updated on laws, and following best practices can ensure your mobile notary business runs smoothly without unnecessary risk. For more helpful suggestions, check out these marketing tips for mobile notary services.

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January 27, 2023

How to Start a Mobile Notary Business in 2023

Filed under: General Articles — Tags: , — Tom Wilkins @ 12:00 pm

Starting a mobile notary business in 2023 is a great way to provide valuable service to your community while running a successful and profitable business. As a mobile notary, you can work from anywhere, set your own schedule, and serve many clients.

Get Commissioned

The first thing you will need to do to start a mobile notary business is to become a commissioned notary public. This typically involves passing a background check, taking a notary education course, and passing a notary exam. Once you are a commissioned notary public, you will need to purchase a surety bond, a type of insurance that protects your clients in case of errors or omissions on your part.

Create a Business Plan

Next, you’ll need to create a business plan. As a notary or signing agent, you know that success in your business requires more than just showing up on time and having the right documents. Taking the extra step to create a mobile notary business plan can go a long way toward helping you achieve your goals and make your work even more successful. There is much to consider, from generating leads to determining pricing structures when writing up your plan.

Invest in the Proper Tools & Equipment

Once your business plan is complete, you must invest in the necessary equipment and supplies to run your mobile notary business. This includes a professional-grade seal and stamp, a journal to record your notarial acts, and a reliable means of transportation to travel to your clients. You will also want to invest in a good-quality printer, scanner, and computer to handle all the paperwork required to do your job.

Market Your Notary Business

Marketing is essential when you start a mobile notary business to ensure a steady stream of clients. You will need to create a website and social media presence to showcase your services and offer discounts and promotions to attract new clients. You should also consider networking with other notaries, real estate agents, attorneys, and other professionals who can refer clients to you.

Ongoing Education

Another important aspect of starting a mobile notary business is to stay up-to-date with the laws and regulations regarding notary services in your state. Each state has different rules and regulations regarding notaries, so it is important to stay informed and comply with all applicable laws. You should also consider joining a professional organization, such as the National Notary Association, which can provide you with training and resources to help you run your business.

How Much Will You Charge for Your Services?

Finally, it’s important to have a clear pricing strategy for your mobile notary business. You will want to research the going rates for mobile notary services in your area and set your prices accordingly. You may also want to offer package deals or volume discounts to attract repeat clients.

Create Your Own Success in 2023

In summary, starting a mobile notary business in 2023 is a great way to provide a valuable service to your community while also running a successful and profitable business. The key steps are to become a commissioned notary public, invest in the necessary equipment and supplies, market your business effectively, stay up-to-date with laws and regulations, and have a clear pricing strategy. With the right approach and hard work, you can start a mobile notary business that will provide a steady income for Notaries/Signings for years to come.

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February 2, 2021

Expressing yourself as a Notary for marketing purposes

Filed under: Your Notes Section — admin @ 1:34 pm

Business is booming for us after seven slow years. What a relief. We are getting a lot of new blood finally and it feels good. The newbies seem to have the same problem describing themselves as the people who preceded them.

Many Notaries want to tell the world things that count against them. Here are some:

1. I shadowed with such and such a Notary.
If the only experience you have is shadowing Penelope, then perhaps the person looking at your profile should hire Penelope, and not you. Shadowing is best left unsaid unless that is in addition to certifications from known agencies.

2. I became a Notary two months ago.
This makes you look like a real novice, wastes space, and counts against you. If someone asks, you can tell. But, you need to give people why they should use you vs. reasons why they should avoid you.

3. I am working on the Notary2Pro course
Notary2Pro is an excellent certification course. We recommend them highly as they do well when I quizzed them several years ago. Carol gets back to people fast with answers to their questions. But, let the world know once you have finished it. Nobody likes a half done job. We sell ten certification courses for every person who attempts the test, let alone who passes it. Buying a course doesn’t make you valuable, passing the test does.

4. I have 25K E&O but will soon be upgrading to 100K.
Don’t tell us what you will be doing, tell us what you have now, and then edit your listing once you have the higher Errors and Omissions policy.

5. I am background screened
By whom? Some companies like NNA and Sterling have a good reputation for background screening, others are relatively unknown and the procedures vary from company to company.

6. I am a Certified Notary Public from the State of Maine and I service Waldo County and do Refinances.
Once again, being “certified” means nothing unless we know who certified you. The testing standards and courses vary. 123notary has the hardest certification test. Pass ours and we will really respect you and you will get more clicks. The next problem is that you are mixing information about certification, your state of commission which is not necessary to put, as we assume you are commissioned in your state otherwise you can’t work. You next list your coverage areas in the same long drawn out sentence. I prefer to put certification(s) in one section with background screening and E&O. Then, in another section I put counties.

7. Hi, my name is Mary Smith
We already know your name is Mary Smith, it says that on the top of your listing. Why tell us twice? That takes up space when you could be telling us something else. The top of your notes section shows up in the search results. Tell us something that makes you stand out.

8. I travel
Everyone on our site travels, well almost. Maybe not the UPS stores and we have a few of them. But, the other 99% of Notaries do travel. People will assume you do.

9. I am reliable, responsible and punctual
Save it. Coming from you, that translates to — I am a novice, I have nothing to say about myself, so I will make unsubstantiated claims about how great I am with the hopes that the reader will believe me even though I have not demonstrated one ounce of credibility to anyone in this industry. Stick to the facts and let your clients put how great THEY think you are in your reviews, or pass my test.

10. I do all types of loans
Most people on my site claim that they know how to sign every type of loan. When I go through my list of 30 common types of signings most of which are Mortgages of one type or another, they typically do anywhere from 20-80%. I have yet to meet a 100%. So, basically, you are being vague, and deceiving the reader into thinking you really are experienced with every type of loan. List them one by one.

WHAT YOU SHOULD WRITE

Cold hard facts
Warm fuzzy “about you” descriptions

When you write about your skills, don’t omit the types of loans you know how to sign. It doesn’t hurt to mention you do refinances, Helocs, purchases, etc., But, 99% of Notaries out there can do those. Do mention it, but focus more on what you do that makes you special. If you are familiar (define familiar) with REO, USDA, Annuities, Applications, Reverse, and Debt Consolidations, that makes you more unusual. Most Notaries have either never done a Reverse Mortgage, or a Debt Consolidations, and the ones who have, typically don’t like doing them and half of the ones who have done them say they don’t want to do any more of them.

We think you should write briefly about your certifications (mention by whom you are certified), memberships, background screening, E&O insurance, and professional background. Don’t write a novel on your award winning Real Estate career. If it is so great, why are you a Notary in the first place? Wouldn’t you be busy selling houses unless you got tired of it? Mention that you do Real Estate, but not more than a sentence or two maximum for best results.

Warm and fuzzy descriptions are hard to teach. But, anything unique that has a nice feel to it about you will look really good. The readers are tired of cliche sounding notes sections. Seen one seen them all. If you have a classy line or joke, that sometimes can do well — it depends, but is worth trying.

We have many good articles about notes writing in the “your notes section” category of our blog. It is well worth investing a few hours taking notes on our suggestions about notes!

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May 14, 2017

Million dollar E and O?

Filed under: Carmen Towles,Popular on Facebook (A little) — Tags: , — admin @ 10:10 am

So it seems that their is a signing service sending out emails to all of the notary signing agents in their data base, informing them that for $100 each they can buy into their companies million dollar E and O policy. I have been asked to weigh in on this. My initial reaction was how odd it was and many questions come to mind. For one, I am not sure that it is even possible for a group of notaries to be under one policy. (I put a call in to an E and O provider at the time of writing this blog and I am waiting for my answer. If any of you veteran notaries know, please post it in the comments section below.) Also, all notaries are independent contractors. They have their own business, and we all work and reside in different states. Another question came to mind; would your name be listed among all the others who buy in under the policy? And would all notaries receive an actual policy? Unfortunately, the email that folks received did not answer any of these questions. What I can say, (and i mean no disrespect) is that on the surface it looks like this signing service is trying to get a little help from the notaries paying their E and O policy. I imagine a million dollar policy is very expensive. If the signing service wants to weigh in that would be great. I believe they are a member of 123.

I never understood the demand from these signing services for such high amounts in the first place. E and O for notaries covers errors and omissions (like forgetting to sign, wrong date, incorrect venue, etc) ONLY- nothing more. In this case of a million dollars, I cant imagine that that these types of errors would even come close to this high dollar amount. And typically, errors are caught before they even have a chance to turn into a problem.

I’d love to hear what you have to say about this…

.

You might also like:

Do I need 1 million E&O to get more business?
http://blog.123notary.com/?p=20183

Help, I’m being sued, and E&O insurance won’t help!
http://blog.123notary.com/?p=3570

$300 in 13 minutes. How Carmen cleans up in the Notary business
http://blog.123notary.com/?p=19284

Here is an easy way to make $4000 more per year
http://blog.123notary.com/?p=14162

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November 21, 2011

Can a notary get in trouble?

Can a notary get in trouble?
 
Notary trouble…
Do you know a notary in trouble?  Have you ever heard of a notary losing their commission or getting fined for misconduct or neglegence?  The answer is — yes, but they generally don’t get caught.  If you are a notary public, it is your responsibility to know your state notary laws, and keep up to date with law changes.  Notary laws change little by little, year by year.  As a general rule, if you deliberatly do something fraudulent that injures another party, you could get in huge trouble or even jailed.  If you make an honest mistake and someone else has a financial loss, you might get in trouble too. If you make a minor mistake or are neglegent in maintaining your certificates or journal, you could get in trouble, but there would be no pressing reason for the authorities to catch up to you.  My advice is to be an expert in your trade and don’t goof!!!  Don’t take liberties, and follow the law to the letter without going to excesses.  Some notaries on our site go overboard and don’t want to advise someone to breath without consulting an attorney — those people are extremists!!!
 
Can a notary get in trouble for notarizing a family member?
Notaries can not notarize a document that they have a beneficial interest in, and family business might be of financial interest to you.  I would avoid notarizing your spouse’s signature or close family member’s signature especially if the document has any financial overtones.  However, distant family members where you have no financial entanglements might be okay.  This is a gray area, and it is better to be safe than sorry. It’s more “kosher” to find a notary who is a third party who is not involved in your life.
 
Can a notary get in trouble for not witnessing a signature?
A notary must witness the signing of a document when performing a Jurat.  However, the notary is NOT responsible for witnessing the signature in an Acknowledged signature.  But, the notary MUST witness the signer signing the notary journal (if your state requires journals — and it is a good idea to keep a journal in any case).  A notary is not exactly a witness except they can function as a witness as an official notary act in Delaware and New Hampshire as far as I know.  The notary’s main responsibility is to identify the signer and be sure that the signer is the one who really signed the document.
 
Can I get in trouble for being a notary?
Just follow the laws and have E&O insurance, and you will most likely be okay.
 
Can notaries get in trouble? Can a notary be in trouble? Could a notary be in trouble?
Yes they can get in big trouble, but if they follow the law, then they will most likely be okay.
 
Can a notary get in trouble for goofing a signature?
The notary signs their own signature on the certificate form generally nearby where their stamp goes.  But, it is the signer who signs the document, and it if the signer goofs their signature, they can sign again.
 
Can you get in trouble for signing a loan document?
Yes, the borrower is responsible for the loan that they sign. The notary is responsible for making sure everything is signed properly.
 
Have notaries ever got in trouble?
I have only heard of one serious case where a notary commited some serious intentional fraud and was put in jail.  Most notaries do not know what they are doing and fill out forms incorrectly, but for some reason don’t seem to get in trouble.
 
How can a notary get in trouble?
If you engage in fraud involving real property you can be jailed, and that is the most serious crime that I have heard of for notaries.  Assisting a party forge a signature and getting notarized is very serious in any case.  If you send notary certificates without a party being notarized, that is a case where a notary can be fined and lose their commission.  There are notary handbooks that go over several dozen types of violations and what the fines are. The fines are different across state lines, but notaries can be fined, and their commissions can be revoked, suspended, terminated, or their notary division could refuse to renew their commission, etc.
 
So, now you have learned a few of the ways that a notary can get in trouble.

You might also like:

Can a notary be a witness?

Things that get notaries complaints

13 ways to get sued as a notary
http://blog.123notary.com/?p=19614

Can a Notary get in trouble? 2019 Version
http://blog.123notary.com/?p=21429

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October 13, 2011

Best Notary Supplies

Filed under: Signing Tips — Tags: , , , — admin @ 5:58 am

Best Notary Supplies 
There are many companies out there to get notary supplies from.  Unfortunately, local stationary stores seem to either not have any notary supplies, or not have very high quality notary supplies.  Getting a mediocre notary journal is not the same as having a very beautiful and thoughtfully designed one — I know the difference, but do you?
 
There are various ways of going about finding the best notary supply company for you.  You can google notary supply companies in your area or state.  Or, just contact the National Notary Association.  When I was a notary, I used their supplies for my entire career, and was always very impressed with the quality and wide variety of products they carried. But, there are others, and those others might be closer to you, or may cater to your state more.
 
National Notary Association
Located in Chatsworth, CA, they can help you become a notary in any state.  They can help you with live classes in California and have materials for many other states as well.  They carry a variety of seals, stamps, embossers, journals, notary carry all bags, notary law primers for roughly 30 states, errors and omissions insurance, bonds, acknowledgment pads, jurat pads, and many other types of notary certificate pads for all states.

Read our review of the National Notary Association
 
Pennsylvania Association of Notaries
National Notary Association caters to the whole USA, but there are a few other good companies as well.  Pennsylvania Association of Notaries is very well reputed.  They can help you become a notary, renew your notary commission, or even find a notary public in Pennvsylvania. Bonds, Insurance, Resources, Classifieds, and more — they do it all!.
 
Signing Agent E&O
I have not heard of this before…or perhaps I heard of it once and forgot about it.  Regular Errors and Omissions insurance doesn’t cover for errors made during a loan signing unless it pertains to a notarized document. Most documents in a loan signing are not notarized!  Additionally, the late return of a notarized document can ruin a loan, but isn’t a notary error — it is a signing agent error!
 
American Association of Notaries
This is another well reputed notary supply company.  They carry most types of notary supplies and for very reasonable prices.
 
If you want to search for more companies, use google and look up using a state keyword and then the term “notary supplies”. That is one way to find the best notary supply company around!

You might also like:

Notary Carry All Bag
http://blog.123notary.com/?p=1238

Make your own notary certificate forms!
http://blog.123notary.com/?p=1759

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