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April 5, 2015

Point (16) Initialing; Lost in a cornfield

Filed under: Loan Signing 101 — Tags: — admin @ 11:25 pm

Marcy had been to the county fair recently. She really got to thinking as she was lost in the corn maze. But, then it all started to pop. It took her ninety minutes to get out of that maze. All of the routes seemed the same, with twists and turns, but only one would get her out of that maze. It reminded her of her career. One thing that Marcy learned, is that the maze had several signs in various locations that showed the routes. She just wasn’t reading the signs carefully enough. There was one intersection with five paths, and she kept taking the wrong one since they all looked almost identical. Where’s your GPS when you need it? She took each path one by one until she got the right one. Corn mazes are confusing like that. As she munched on some grilled corn at the fair after her ordeal, she was even more determined than ever before to be the perfect Notary. And besides, she would have to face her neighbor Patricia who didn’t tolerate failure (or bad corn)!

At Marcy’s next signing, she noticed that the name of the signer was printed incorrectly on the signature line of one of the documents. Marcy had them initial next to their signature. The next day she got a call from the Processor. The Loan Processor was upset that the initials were to the right of the signature which got in their way of doing the changes. Never had Marcy heard of someone other than her cat being so picky. After all, she did her job correctly, she had the borrower initial and sign the correct way. What more can you ask for? Furthermore, they didn’t do any forbidden cross-outs. Marcy felt her work was perfect. The Processor wanted the initials below the typed name under the last several letters of the last name. This is how 123notary teaches initialing incorrectly printed names by the way. Marcy said that she would do it that way from then on. Marcy went on to tell Patricia what had happened and Patricia said, “If it isn’t one thing, it’s another — but, keep this up. You’re really getting somewhere now! And remember, a cornfield of 10,000 acres isn’t planted in a day.”

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Point 16 — Initialing
Most Notaries don’t understand initialing. At least they don’t initially. Although there are no formal rules, here are some guidelines.

The initials should cover all parts of the person’s name being signed.

Theodore T Tidmore would initial TTT
Nancy Nissenbaum would initial NN
Thomas T Carl Edison would initial TTCE

But, what if it gets complicated?

Thomas Smith, Sr. would initial TS Sr.
Thomas Jones, III would initial TJ III
Thomas DeLuna is a little more complicated. I choose TD since the last part of the name is connected.

But,

Thomas De La Cruz De Philippe Rodriguez Ramirez Gomez would initial TDLC DPRRG — oh my God.

Where do initials go?
Where do initials go, assuming they are not on a tree representing a relationship soon to be DOA? On loan document signings, it is common for borrowers to initial all pages of the Deed of Trust, sometimes the Note, often the Universal Residential Loan Application (The 1003), and sometimes other multi-page documents. There is normally a one centimeter line in the lower corner of the page where the initials are intended. But, keep your eyes open, because the special line for initials might not be where you expect it to be.

Initialing changes
Many notaries do not understand the name changing procedure. It is really up to the processor to do name changes. However, the notary must at a minimum have the borrower initial any changes. My best client during my loan signing days was a processor which is how I know the ideal procedure for name changing. It is easier than you might think.

Have the borrower initial to the right below the last several letters of the typed name.
Have the borrower sign the correct way where they are supposed to sign.
Inform the lender in writing and by phone that the name is changed to whatever it is changed to.
There is no need to cross-out. Cross-outs cause a mess. there is also no need to write in the correct name. The processor can do that.

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You might also like:

30 Point Course Table of Contents
http://blog.123notary.com/?cat=3442

30 Point Course (17) The APR
http://blog.123notary.com/?p=14483

Can you notarize initials?
http://blog.123notary.com/?p=8269

Read about initialing in our industry standards blog entry
http://blog.123notary.com/?p=4370

Signing Agent Best Practices 63 Points
http://blog.123notary.com/?p=4315

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November 15, 2024

How to Properly Notarize Multi-Page Documents

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

Dealing with multi-page documents can be daunting for homeowners and business owners, especially when notarization is required. Knowing how to properly notarize multi-page documents for legal compliance can save you time, prevent delays, and protect you from legal issues. This guide will walk you through the essential steps to ensure accurate and legally compliant notarization every time.

Why Proper Notarization Matters?

Notarizing multi-page documents is more than just applying a stamp. It involves verifying signatures, ensuring completeness, and confirming the legal authenticity of the entire document. Mistakes, such as missing pages or incorrect certificates, can lead to rejected documents, wasted time, and potential legal disputes. Understanding how to properly notarize multi-page documents for legal compliance is essential for avoiding these problems.

Step 1: Review the Entire Document Thoroughly

Before you begin notarizing, review the entire document to ensure it is complete.

Check for Missing Pages

Ensure that all pages are present and in the correct order. Missing or misplaced pages can ensure the document is valid. Pay close attention to any missing sections that could be filled in later without your oversight.

Look for Blank Spaces

Verify that the document is free of blank spaces. Blank spaces could be altered after notarization, potentially leading to fraud or disputes. Ask the signer to fill in any blank fields or cross them out if they are intentionally left blank.

Step 2: Use Notary Certificates Properly

Usually, the notary certificate is on the last page of a multi-page document. However, this isn’t always the case; additional steps may be needed.

Attach a Loose Certificate When Necessary

If the document doesn’t have a built-in notary certificate, attach a loose certificate. Based on the requirements, choose the appropriate type, such as an acknowledgment or a jurat. Complete the certificate, including your signature and seal, and reference the document.

Number the Pages

Add page numbers to the entire document manually or with a page-numbering stamp. Noting “Page X of Y” helps verify the document’s completion and prevents pages from being altered or removed later.

Step 3: Verify the Signer’s Identity and Signatures

One of the most crucial steps in properly notarizing multi-page documents for legal compliance is confirming the signer’s identity. This process is essential for maintaining the integrity of the notarization.

Check Identification

Examine the signer’s government-issued ID to verify their identity. Make sure the name on the ID matches the name on the document. If there are multiple signers, repeat this process for each person.

Ask the Signer to Initial Each Page

Have the signer initial every page of the document. This practice helps confirm that each page is part of the original document. Initialing reduces the risk of tampering or page substitution.

Step 4: Apply Your Notary Seal Correctly

The notary seal is critical to the notarization process, especially for multi-page documents. An improperly applied seal can invalidate the notarization.

Placement of the Notary Seal

Place the seal near your signature on the notary certificate. Make sure it is clear and legible. If space is tight, use an embosser seal instead to avoid covering important text.

Double-Check Seal Details

Ensure the seal includes your name, commission number, and expiration date. For the notarization to be valid, all details must be visible. Double-check the seal’s clarity before completing the process.

Final Review and Completion

After applying the seal, conduct a final review of the entire document. Check again for missing initials, blank spaces, or incorrect details. This final step can save you from having to redo the notarization.

Ensure Legal Compliance with Every Step

Properly notarizing multi-page documents is vital for maintaining their legal integrity. By following the steps to properly notarize multi-page documents for legal compliance, you can avoid common errors and provide a reliable service to your clients. From reviewing each page thoroughly to applying the notary seal correctly, your attention to detail ensures the document’s authenticity. For more expert advice on enhancing your notary practice, please look at our social media tips for notaries.

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January 9, 2022

Which rules are laws, Lender practices, or best practices?

Filed under: Loan Signing 101 — Tags: , , , , , — admin @ 9:24 am

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Notary Rules or Industry Rules?

It is confusing with all the standards in the Notary business. When 123notary teaches Notary practices, we are not teaching laws, but solid practices. Many Notaries argue with us about our practices because they are not required by law. That is the whole point — we are not teaching law because we are not authorized to, and because we don’t know it. We do know solid notary practices, and teach it as you can get into trouble for not knowing your basics. However, notaries have many misconceptions about the rules of the industry. So, let me clarify.

1. You can always over sign — industry practice (not a law)
Is this a Notary law, industry practice, or what? This statement means that you can sign a document with a name that is longer than the name typed in the signature line. However, that does not make it legal to notarize that longer name unless you can prove the name with an ID. Pleasing the Lender is one aspect of being a Notary. Obeying the law is a much more important one. If you displease the Lender you get fired. If you get in trouble with the law you can end up in jail. Pick your poison.

2. The name on the ID has to match
Please keep in mind that there are four names we have to keep track of:
(a) The name on the ID
(b) The name typed on the signature section of the document.
(c) The name signed on the document
(d) The name on the acknowledgment.

In theory these names could all be different variations, but it is cleaner if they are identical. The critical points are that:

(e) The name on the Acknowledgment must be identical or matching but shorter than the name on the signature line of the document. If the signature on the document says John W Smith, you can put John Smith or John W Smith in the Acknowledgment to please the law, but the shorter name might not please the client.
(f) The name on the Acknowledgment must be provable based on the name on the ID, but does not have to be an exact match. The ID could say John W Smith and you can put John Smith in the Acknowledgment if you like.
(g) The name signed on the document can be identical or matching but longer than the name typed on the document to please most Lenders, but legally notarizing the longer signature or shorter signature is dependent on proving all of the components of their name with an ID.

3. The Lender is the boss of the Notary Public (true for signings, but not for the actual notary work)
The Lender is your boss as to the general assignment, and what happens with loan documents. They are NOT your boss about Notary issues and you should not ask them for Notary advice ever as they might have you do something illegal out of ignorance or greed. You ask your state’s notary division if you have a Notary question and perhaps the NNA hotline and that’s it. The Notary can ask the Lender their preference in how something is notarized if there is more than one legal way to do it, but you can not ask a Lender how to do your job. You are the appointed Notary, not them. If they want to do it their way, they should come over with their stamp and do it their way which hopefully is legal — but, it is their commission at stake if it is not legal. Don’t risk your commission depending on the Lender or Title for Notary advice.

4. The Notary is the boss of the Lender?
The Notary is a state appointed official who represents their state, although the state is not the entity that pays them. If there is a discussion between the Lender and the Notary as to how a Notary act is done, the Notary dictates how it should be done. If there are multiple legal ways to do something such as fixing a mistake by crossing out and initialing vs. attaching a loose certificate — then, the Notary can ask for the Lender’s preference, but not for advice. However, there are liability issues with doing cross outs and initialing. It looks like tampering and you don’t want to end up in court. So, once again, it is the Notary’s discretion as to how problems are solved when there are multiple methods to solve. You can ask the Lender what they like or you can dictate to the Lender what you are going to do. But, the Notary is the boss of Notary work. If they don’t like it, they can find another Notary. It is best if you explain the reasons why you want to do something a particular way. If your reason sounds prudent, there is a chance you might get some respect for your decision. Most Notaries don’t think issues out carefully and do not have well thought out reasons for anything they do. Read our course more and become reasonable! Your commission might depend on it.

5. Send me a loose certificate or jurat in the mail (illegal)
Acknowledgment or Jurat certificates must be stapled to the documents they are associated with. If there is one floating around, you cannot create another one until you destroy the original yourself. Some states do not allow creating new certificates for botched notarizations and require you to do the notarization all over again. Consult your notary handbook on this issue, especially in California where there are many new rules created in the last few years that I have heard about but not actually read to my satisfaction.

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You might also like:

The ID says John Smith
http://blog.123notary.com/?p=19953

What is the cleanest way to rectify an error on a certificate?
http://blog.123notary.com/?p=20018

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

5 books every notary should own (and read)
http://blog.123notary.com/?p=3668

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January 1, 2022

Who is the authority at a Notary Loan Signing?

Filed under: Loan Signing 101 — Tags: , , — admin @ 10:13 pm

Originally published several years ago.

Notary Public Authority

We often ask questions about authority to signing agents, and the results are horrifying. Most Notaries do not know who is in charge of what. So, this article will sum it up clearly.

Notary Public
A Notary Public is a state appointed state official who is paid by customers, but whose “boss” or authority is the state Notary division. Many Notaries Public seem to be confused as to who their boss is, the one paying them or the one commissioning them. The problem is further complicated by the fact that the ones paying them often pay them for more than just Notary services as travel, pick up, drop off, and supervision of non-notarized signatures and packages seem to be part of the deal if you are a Signing Agent.

The Notary is the sole authority regarding what goes in a Notary certificate such as an Acknowledgment, Jurat, etc., what goes in the journal, what is allowed or not allowed, and how a notarization should be done.

It is common that Notaries have questions during a loan signing and direct those questions to the Lender or Title representative. This is okay for Title or Lending questions, but not for Notary questions where the Notary may only turn for help to their state Notary division, official Notary handbook, or perhaps the NNA hotline.

Notaries should NOT ask the Lender for Notary advice because:
1. The Lender is probably not a Notary
2. If the Lender is a Notary they might be in a different state
3. If the Lender is a Notary and in the same state they might not be knowledgeable.
4. If the Lender is a Notary, in the same state, and knowledgeable, they might (are likely to) give you advice that would make the job go more smoothly for them, yet have tremendous liability for you.
5. You are the one appointed to the job, so even if the person you are asking for advice is a Notary, they are not the one whose commission number gets put on the certificate, and you are the one going to jail if something goes wrong. Therefor, you have to know your laws and what you can and cannot do, etc.

Who can initial and where?
Any initials on a Notary certificate are done exclusively by the Notary Public. It looks like tampering if the borrower or anyone else makes marks on a Notary certificate. The borrower may initial documents, but not the Notary certificate or Notary section in or attached to a notarized document

The Lender
The Lender is the “boss” of what happens with loan documents. If the Lender authorizes a change, initialing, cross outs, etc., on an actual loan document that is NOT in the notary section, that is up to them and they are the authority on that matter, not the Notary. The minute the issue becomes with a Notary certificate, then the authority swings over to the Notary (even if the Notary doesn’t have a clue what to do.)

The Title Officer
The appointed Title company might be a good source of information about how to handle any issues that might come up with Title documents or recorded documents. You can ask them if you have questions, but don’t let them answer Notary questions.

Issues of Preference can be asked to the Lender
Sometimes there is more than one legal way to handle a situation. If there is an error on a preprinted Acknowledgment, and your state allows a choice of crossing out & initialing vs. using a fresh Acknowledgment form, you have a choice. The Notary has the right to make that choice on his/her own and choose the option that he/she feels is more prudent or ask the Lender. However, this is a situation where the Notary can ask the Lender not for advice, but for preference. If the Lender would prefer a loose Acknowledgment stapled on to the document rather than crossing out & initialing the original form, the Notary can proceed accordingly.

The Borrower
The borrower has the right to sign, not sign, tell you where to park and more. Their preferences matter as well.

Your State
Your state Notary division decides what the laws are in your state, how they are explained or document in your official Notary handbook, etc. They are your boss, so you do whatever they say. Additionally, if you are weak on your Notary knowledge, that can lead to ending up in court as a witness, having your commission revoked, suspended or terminated. Additionally, it is possible to be convicted of a crime if you are thought to be involved in property related fraud, or if you filled out a form stating that an Oath was taken when in fact it was never taken which is a daily fraud that most Notaries engage in that is unacceptable.
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You might also like:

Does 123notary have the authority to quiz people?
http://blog.123notary.com/?p=19469

Notary Public 101 Quiz Questions
http://blog.123notary.com/?p=19520

Do you keep a journal to please your state, a judge, the FBI or 123notary?
http://blog.123notary.com/?p=19483

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

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July 22, 2021

How to find a Notary mentor

Filed under: General Stories — admin @ 3:59 am

Many Notaries ask me how to find a Notary mentor. I used to know people who did teaching and mentoring. But, they are all getting so old. I don’t know who to recommend. There are several issues here.

ISSUES WITH MENTORS

1. If you get a mentor who is near where you live, you represent competition for them. Even if they are the best in the world and you are brand new, you will eventually get better and take some market share from them.

2. If you get a mentor who is far, then how will you ever be able to meet with them?

3. Ideally, you want a mentor who is about an hour away so you are not in direct competition with them.

4. When I call people who are being mentored, whenever I ask about their skill set, they immediately tell me all about what their mentor knows and how great their mentor is. That is all very wonderful if I am going to hire their mentor, but not if I am going to hire the new Notary. Answer questions about you based on you. If you know nothing, be up front about that otherwise you would be a very slippery person who knows nothing vs. an honest straight forward person who knows nothing. People who hire notaries can see through all of this type of BS and none of us have patience for it or like it. Real answers to real questions please.

HOW TO FIND A MENTOR

NNA used to publish a list of mentors. I don’t know if they still know people who do this.

You can call the most experienced notaries on 123notary and see if any of them will help you. You could call local ones, or people far away with high placed listings.

The NNA claims that social media is a good place to find a Notary mentor. Facebook groups, forums, etc. I tend to agree with that idea. However, people who are busy and successful don’t always show their face on social media because they are too busy working so that they can keep being successful. Meanwhile, people who are not at all successful often spend all of their time on social media, sometimes bashing other people who spend their lives being productive (especially in the notary world.) Carmen and I are very familiar with that type of social media user.

Carol Ray knows many people in the business and might be able to help. She runs Notary2Pro which is an agency that trains Notaries.

Asking leaders of notary organizations (other than myself) might be a great idea. I know people who teach or used to teach, but I don’t know if they are mentors. I just emailed a few to ask if they do it or know anyone who does it. But, the various leaders of Notary organizations might know all sorts of people doing all sorts of things and there are many organizations out there.

HOW TO SCRUTINIZE A MENTOR

Not all people are experts at all things and not all experts are available or helpful. So, how do you find a good mentor? You could find someone 1000 miles away who is good at answering questions. But, that doesn’t help when you want to shadow someone. On a brighter note, if someone doesn’t want you shadowing them, they have to tell you to your face as you can’t “shadow ban” someone who is with you in person. You should ideally either have a company who can micromanage you and walk you through your first several signings, or find a local mentor you can tag along with for three to ten signings.

The mentor should know:
1. Local notary laws
2. Signing agent procedure
3. How to handle situations
4. How to explain the documents, initialing, the right to rescind, document recording, and basics about title, escrow, and lending.

Since you presumably don’t know anything about signing work or situations, you can see if that person knows how to be a good notary at a minimum. But, you won’t know if they are a good signing agent since you don’t know what to ask them to verify that information. You can ask questions about various notary signing topics and see how thorough or intelligent the answers are. However if you are at the stage where you are ready for a mentor, YOU need to be an expert at your state notary law yourself. If you are going to use your stamp even once, you could end up in big trouble if you do something wrong — so know your stuff!

It would be a little like me hiring someone to be a rocket scientist — I wouldn’t know what to ask them since I know nothing about rocket science.

IF YOU ARE A MENTOR
If you actually are a mentor and are willing to deal with new people and their insecurities, you can respond to this blog post! Additionally, if you know where to find a mentor, shares your comments as well.

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November 6, 2020

Notarizing Multi-Page Documents

Filed under: Technical & Legal — Tags: , — admin @ 9:35 am

Should a Notary notarize every page of a document? How can a Notary or signer safeguard themselves from someone swapping pages in a document after the notarization has taken place? You need answers! Here they are!

1. A Notary Public notarizes signatures on documents, not pages on documents. A particular page or pages might have notary certificates within a document. Or, a certificate could be stapled to the back of a document. Ideally that certificate should identify the corresponding document. If you have a ten page document, there will most likely only be one, and possibly two pages with notary wording.

2. A prudent Notary Public carries what is called an inkless embosser that leaves a raised seal impression. This is in ADDITION to having the legally required inked seal that is used with blank ink. The embosser can be used to emboss every single page in a notarized document. I did exactly that on everything I notarized even if there were 100 pages. I did this for safety reasons. I did not want people to get away with switching pages after the fact and dragging me into court as a result of someone else not liking the idea that a page was swapped.

3. If a signer swaps a page from a notarized document, and that page was embossed, they can still swap the page. However, it will not be legal, and it will be very obvious to the Notary Public if investigated that the new page was not part of the original notarization as the notary embosses all pages — if the notary indeed was the type of notary who embossed all pages — like me!

4. Some people initial all pages. Initialing is a type of precaution. But, initials can be forged easily, and it is sometimes not easy to tell if they were forged.

5. If a document had a page swapped, the staple and staple area in the pages might show evidence of tampering. The degree of evidence depends on how skillful the fraud was at swapping pages. Luckly in my career of 6000 Notary appointments I did not have this issue.

6. If you need to add a page to an already notarized document. What can you do? You have to notarize the entire document all over again. I had that happen. What a pain. The signer wasn’t happy. Sorry — just following the law!

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You might also like:

Notarizing Multi-Page Documents 2011 edition
http://blog.123notary.com/?p=1706

Sending loose certificates is illegal
http://blog.123notary.com/?p=2470

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

How often do Notaries end up in court?
http://blog.123notary.com/?p=19914

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October 9, 2019

Maximum Notary fee $5, but the signing pays $200?

Filed under: Notary Fees & Pricing — admin @ 11:23 pm

Each state has a maximum notary fee per notary act or procedure. Some charge by the signature, Florida charges by the stamp if I’m not incorrect (better look that one up.)

But, if you are allowed $5 per signature, the signing has four signatures, but pays $200, then what? Are you breaking the law? Or are you being paid for mobile fees and supervising fees? The truth is that you are being paid for a bunch of responsibilities within your service:

Printing documents
Confirming an appointment
Supervising the signature and initialing of documents
Answering simple questions (perhaps)
Not answering questions you are not supposed to (unless you are a know-it-all who is looking for trouble)
Notarizing
Waiting while people read or have long conversations by phone with the Lender.
Getting the documents safely back where they belong
Availability for after service.

All of those combined definitely merit at least $125, don’t you think?

So, how do you document this in your journal? $5 per notary act. Two people x two notary acts per person is four lines in your journal each stating $5 for the notary fee. And then in the additional info section for the first notary act of the set, put down you got $180 travel / supervising fee for a loan signing. Then it is all documented just in case the IRS has any questions. Notary fees are not subject to self-employment tax but travel and supervising fees are. Look it up in the SE instructions.

But, what if you live in California and the Notary fee is $15, you have ten signatures, but the job only pays $100. You could charge $150 plus travel for that signing, but your Lender or signing company isn’t paying that. Just put whatever you want for the notary fee between zero and $15 per notarized signature in your journal. And do a reasonable estimate for what the travel and supervising fees should be — just estimate and try to be proportionate.

You might also like:

Travel fees vs. Notary fees in your journal
http://blog.123notary.com/?p=22612

Travel fees if nothing gets signed
http://blog.123notary.com/?p=22578

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July 8, 2019

Looking Beyond the Notary Section – A case Example

Filed under: Ken Edelstein — Tags: , — admin @ 3:01 am

The classic examples
We are often told not to notarize a document that contains blank areas. Of course in reality we do exactly that in every loan package. Take a look at the 1003 (the computer version of the loan application). Lots of blank areas there and nary a single N/A. Once I was put on standby for many hours; to notarize the sale of a super tanker. The neatly bound document was thicker than the Manhattan phone book (alas no longer issued). It was about 1500 pages. I did not turn each page in a desperate attempt to find a wayward and un-entered fill in. After about 6 hours of waiting time, I notarized the (approx from recollection) two dozen affiants at the end.

What happened today
The document was an amendment to an incorporation agreement. There were to be eight affiants; even with the nicely preprinted notary sections it totaled four pages. Simple? Well there was an issue. Just prior to naming the trustees, there was the statement that the names and addresses of the trustees would follow. The names were there but not the addresses. I normally don’t read the documents, but wanted to be sure the list of names matched the notary sections. I mentioned the discrepancy to the person managing the signing. I was asked how this should be handled. I covered the I’m not a lawyer issue. They came up with three possible courses of action.

The first would be to simply write in the addresses. Second, would be to redact “and addresses”. The last was to simply ignore the matter. They choose option 2. So, when the “and addresses” had a line drawn thru (not at my suggestion), I felt compelled to raise the issue of the requirement to initial hand written changes.

The first two affiants had left the session after being properly notarized and were not present to initial the change. The other 5 initialed. Hmmmm, 8-2=5? Sorry, but one of the planned 8 could not attend and would be notarized at a later date, and also initial that redaction.

In all probability the infamous “fix it fairy” would provide initials for the two who left early; of course I did not suggest that. But, as unfair as it sounds to me; some were unhappy that I mentioned the discrepancy between the stated text and the data entered. In other words; it seemed to some that I “created a problem” – just by stating the obvious (to me) flaw.

In all probability I goofed In hindsight, as I peck away at the keyboard; away from the seven affiants who want me to resolve the “issue I created” – I shudda kept my big mouth shut. My biggest blunder was to agree on the 3 possible solutions. Perhaps the address is an absolute requirement for acceptance of the document. I truly don’t know. And, the only reason that I sailed into that blunder was by mentioning the issue.

Resolved: At least for me – if it’s not in the notary section, don’t read it, don’t comment on it. And absolutely say nothing about how they should proceed. It’s OK to mention initialing changes, but take no “legal opinion” about “course of action” when modifications are being considered.

You might also like:

Index of posts about Notary certificates
http://blog.123notary.com/?p=20268

A guide to notarizing documents with blanks or multiple signatures
http://blog.123notary.com/?p=20252

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April 2, 2018

Cross out and initial, or use a fresh form?

Filed under: Technical & Legal — admin @ 6:41 pm

Most Notaries like to cross-out and initial changes in certificates. Keep in mind that these are legal documents affecting million dollar properties. Cross-outs look like tampering. It is CLEANER to take a fresh acknowledgment form from your Notary bag, fill it out thoroughly including the additional information section with the name of the document, number of pages, etc., And then staple it on to the document. On the other hand, using a new form could change the recording fees for the loan which would affect the truthfulness of the information on the Closing Statement.

If there is a cross-out for a name on a certificate that is a quite serious legal issue. It could lead to complications should you ever go to court. It is your right to decide to use a fresh acknowledgment form and staple it on the document even if the Lender doesn’t want it that way. Lenders sometimes prefer to use the original form because it is inscribed within the document. But, also because a new form will be charged extra money from the county recorder. Lenders sometimes lose loose acknowledgment forms which is yet another reason many Lenders prefer to fix the original.

As a Notary, you may be faced with the unpleasant reality that the Lender may have already filled out your Acknowledgment form, and with wrong information. If the form says you are in Orange County when you are in Seminole, you cannot notarize that form as is. So, what do you do and what are the consequences?

I cannot tell you what your state laws allow or require, I can only tell you how to handle forms in a prudent way.

Fix the Existing Form
If you are going to fix the existing Acknowledgment, just cross-out the wrong information with a single line, write in the correct county, and the Notary initials. The borrowers can initial changes to documents, but should not initial changes to certificates unless your state says so in writing. Fixing the existing form has the advantage that there will not be any changes to the recording fee for the loan. If you start adding additional pieces of paper, that will change the information on the HUD or CD and open a can of worms which some Lenders don’t like. On the other hand it is cleaner to replace the form rather than to fix it as fixing it looks like potential tampering.

Replace the Form
To replace an Acknowledgment, just staple on a new Acknowledgment, fill it out, sign and seal. Please also fill out what is called the optional and additional information which is normally about the document such as number of pages, document date, etc.

Communication Errors
When I ask Notaries how to fix a wrong county on an acknowledgment, some of them tell me how to replace it. Fix and replace are not the same word, so please do not answer a different question from what I asked. Please also be aware of the benefits and costs of replacing the form rather than fixing it.

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You might also like:

The 30 point course – initialing
http://blog.123notary.com/?p=14463

The man who wouldn’t use his middle initial.
http://blog.123notary.com/?p=4040

What is the cleanest way to rectify an error on a certificate?
http://blog.123notary.com/?p=20018

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April 1, 2018

Scenarios: What is the cleanest way to rectify an error on a certificate?

Filed under: Technical & Legal — Tags: , , , — admin @ 9:25 am


Notary Certificates


In this article I will address multiple points affecting fixing errors on certificates.

WHAT IS THE CLEANEST WAY TO RECTIFY AN ERROR ON A NOTARY CERTIFICATE?

Most Notaries like to cross out and initial changes in certificates. Keep in mind that these are legal documents affecting million dollar properties. Cross-outs look like tampering and there is always a small chance that your cross-out will cause a long and drawn out delay in a court case if an Attorney suggests that perhaps there was tampering. It is CLEANER to take a fresh acknowledgment form from your Notary bag, fill it out thoroughly including the additional information section with the name of the document, number of pages, etc., And then staple it on to the document.

To be prepared for this type of situation, please do the following:

1. Keep Notary certificate pads on your person
Buy Acknowledgment, Jurat, and Copy Certification forms from the NNA. These forms come in pads and fit in your notary bag or at least in your trunk. A good Notary carries these and uses them regularly.

2. Ask for preferences, not for advice
Know when to ask the Lender or Title company for their preference. Please remember that as a Notary, it is your exclusive jurisdiction to be the expert and sole authority as to how Notarizations should get done and how Notarizations do get done. However, if there are two legal ways to handle a situation such as fixing an error on a certificate (does not apply to Maryland as I have heard that you may not add a loose certificate there — look it up in the MD Notary Manual to be sure) you can ask for a preference as to which legal way the Lender prefers. But, you must not ask a Lender if it is “okay” to do something in a Notary form, but only if they have an “issue” with it.

The way you think about asking Lenders questions matters as many Notaries think of Lenders as their authority and boss. As to completing the assignment, loan documents and shipping, they are your boss. For the actual Notary procedure, the Secretary of State Notary Division (or whatever they are called in your state) is your only authority and YOU are the authority over the Lender in this regard. You have the right to say no, and they do not have the right to boss you around about Notary issues, but only to voice preferences.

3. Recording fees & issues with adding forms
If you add a loose acknowledgment to a notarized document in a loan signing, that will change the recording fee which might be recorded on the CD, Closing Statement or HUD-1. You are opening a can of worms if you do that. However, in my opinion, the integrity of the notarization trumps any recording fee issues as you are not likely to end up in court because the recording fee went up by $10 or $50, but you might end up in court if someone thinks there is tampering due to initialing and changing information on a Notary certificate.

WHAT IF THE LENDER WANTS YOU TO USE THE ORIGINAL?

Lenders are particular to the fact that they might have trouble reselling their loan if there are too many abnormalities in the Notary section such as adding certificate forms. Additionally, recording fees can go up if you add a certificate to a recorded document, and that affects the information on the CD or HUD which opens up a can of worms. However, please consider that if there are any accusations of tampering, it is you who might spend a long time in court. Adding a fresh certificate that has its additional and optional information filled out, which identifies the document clearly, eliminates most possibility of suspicion.

YOU HAVE THE WRONG STATE IN THE ACKNOWLEDGMENT
Assuming the form is acceptable in all other ways other than the state, just cross out the state, write in the new state, initial, and you are done. Do NOT let the borrower initial Notary certificate forms — that is exclusively the jurisdiction of the Notary.

WRONG COUNTIES VS. WRONG DATES OR NAMES
Having a cross-out in the county of the venue would probably not affect the nature of the contact. Whereas changing a date would affect rescission which could nullify the effectiveness of a loan if challenged in court. Crossing out a name on a certificate can really change the contractual significance of a loan document. I cannot recommend how to handle situations with any authority. However, please realize that changing a county is a small issue while crossing out and initialing a date or name on an acknowledgment for a loan document could cause havoc down the line.

You might also like:

Cross out and initial or use a fresh form?
http://blog.123notary.com/?p=19933

Index of posts about Notary certificates
http://blog.123notary.com/?p=20268

Fixing certificates is a state-specific nightmarish issue
http://blog.123notary.com/?p=21083

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