Many people become Notaries to make a few extra bucks and don’t realize there are liabilities in this profession. Here are some ways you can get into trouble as a Notary.
1. You name your business a particular name, advertise with that name, but the name is not registered with your county clerk. Someone could sue you for using their business name.
2. You notarize loans in an Attorney state and the local bar association sues you. This has happened to a few Notaries in Massachusetts, and in Georgia the bar association antagonizes Notaries from time to time.
3. You make a mistake on a signing and your E&O doesn’t cover you. E&O is for NOTARY MISTAKES and not for business mistakes you make with loan signing. If a document is not notarized, your E&O will not cover your mistake. For example if you sign the note wrong, that is not a Notary mistake, that is a document signing mistake.
4. You return documents back late and the Lender sues you because the borrower lost their lock.
5. You make a comment to the borrower about their loan, they cancel, and then the Lender blames you and sues.
6. You decline to Notarize someone whose name on the ID does not match or prove the name on the document. One Notary did exacty this and got sued and lost because her communication skills were so bad, but judge could not understand her side of the story.
7. You get in a car accident on the way to a signing and get sued as a result of the accident.
8. You make a mistake in a loan signing and then don’t answer your phone or email for days after. The Lender is pulling his hair out and sues you for his bill with Bosley hair transplants.
9. You don’t follow directions on an assignment. You don’t show the documents in the order the client asked you to. As a result, the client changes their mind about signing the document that will get the client their commission. The client loses $5000 because of you, sues you, and wins.
10. You forget to administer an Oath and your state fines you for malpractice. In California there is a $750 fine for each Oath you forget. Fining and suing are different, but the end is the same — you lose. Or should I say, I swear you will lose!
11. You give legal advice or something that can be construed, misconstrued as legal advice. Then, you get sued for UPL. If you give legal advice to a courier company you could get sued for UPL by UPS.
12. You put the wrong date on the Right to Cancel, the borrower thinks they have an additional day, and find out after the fact that they don’t. Good luck. You would be surprised how many Notaries do not know how to date a Right to Cancel.
13. You misrepresent yourself as an immigration expert and defraud some poor and helpless immigrants. Or you advertise as a Notario. You will be cracked down upon by many state governments for this.
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