Posted by Kai McFarland on 2/9/07 7:43pm
Msg #174988

Conflict of Interest - CALIFORNIA

Hi everyone,

I am a brand new notary commissioned in CA and I wanted to get input from other members regarding conflicts of interest when notarizing for family members. I have been told from a few sources to not notarize for any relatives, but I'm not sure if I agree. I think it's clear that notarizing for a spouse is a definate no-no, but what about my parents and my sister? I understand the "safe answer" would just be to not notarize for anyone related, but I don't want to hold off notarizing for them to avoid a non-existant (or essentially insignificant) risk. The CA Handbook dosn't directly answer my question (see below). I want to know what the CA notary community has to say! Please post your thoughts!

CONFLICT OF INTEREST
A notary public is not prohibited from notarizing for relatives or others, unless doing so
would provide a direct financial or beneficial interest to the notary public. With California’s
community property law, care should be exercised if notarizing for a spouse or a domestic
partner.
A notary public would have a direct financial or beneficial interest to a transaction in the
following situations: (Government Code section 8224)
• If a notary public is named, individually, as a principal to a financial transaction.
• If a notary public is named, individually, as any of the following to a real property transaction: beneficiary, grantor, grantee, mortgagor, mortgagee, trustor, trustee, vendor,
vendee, lessor, or lessee.
A notary public does not have a direct financial or beneficial interest in a transaction if a
notary is acting in the capacity of an agent, employee, insurer, attorney, escrow, or lender for a person having a direct financial or beneficial interest in the transaction. If in doubt as to whether or not to notarize, it is recommended that you seek the advice of an
attorney.

Reply by Simone E. Lewis on 2/9/07 7:48pm
Msg #174990

If in doubt as to whether or not to notarize, it is recommended that you seek the advice of an
attorney.

Reply by TitleGalCA on 2/9/07 8:10pm
Msg #174995

*** unless doing so would provide a direct financial or beneficial interest to the notary public***

I think this is the key here. I notarized my sister and brother-in-law's refi a few years ago - I have no financial interest in that transaction, so was comfortable in doing that.

However, I won't notarize a form for one of my kids to receive their fathers pension. Indirectly I could benefit, so I won't notarize the form.

The language is pretty clear in the code.

Reply by Kindra Hill on 2/9/07 10:40pm
Msg #175036

I just had this conversation with my mom tonight. I refinanced my house in December and was satisfied with the results, my boss acted as notary, and I thought the gal who did the loan was a stand up gal. So I recommended her to my mom ...

Long story short, mom is not happy at all. She feels she was screwed a little, that she felt uncomfortable when the notary came and she was signing. I asked why she didn't just call me to do it. She said the loan gal said it would be conflict of interest, her office wouldn't let me do it because I'm her daughter.

Sorry, I have to call the bull**** card on that. Only way it would be a conflict of interest is if I was gaining financially, which I obviously wouldn't be, my name is not on any of the docs, I'm not being put on title, etc etc. I think the loan gal new that I'd catch the extra paddings and didn't want me being involved in her sales pitch since I call it like it is.

Reply by Linker Mobile Notary Service on 2/9/07 10:46pm
Msg #175037

Kindra - if you mother has a trust (for example) and you are named in that trust then you have a beneficial and perhaps financial interest in that. Just a thought.

Reply by TitleGalCA on 2/9/07 10:58pm
Msg #175039

Kindra...by what you said *** She said the loan gal said it would be conflict of interest, her office wouldn't let me do it because I'm her daughter.***

that spoke volumes. You had no financial interest and you probably wouldn't have charged your mom anything. So where does this Notary figure out the conflict of interest, mmmmm??

I Call BULLSHIT! Just like in the movie with Matthew McConnehey. "Bullshit" just as loud as
Grand Dad called it.

No matter how loud it is called, or by whom, it is still BULLSHIT!

A fun game when every one is having a good time...but if someone is getting the screw, "Bullshit" needs to be shut down, Kindra. Take control of the rougue notary and do it like only you do well. Good job! and do it right =)

Reply by Gary_CA on 2/10/07 11:05am
Msg #175088

Advice on the advice of an attorney

If the potential gain to you or cost to your family (i.e. notary fees paid or saved) is under $100, skip the attorney.

I know you said in the beginning that you understand that just not notarizing for family is safe, and you're looking for a real answer. I like knowing precise answers too.

But the real world answer is play it safe. Besides, keeping family and business separate is always nice, and now you have a good excuse to do so. That way nobody is gonna ask you to do a quick loan signing during Superbowl half time.

As for notarizing a loan for mom... it's very conceivable that you might inherit the property later on and end up with an interest you didn't expect. I understand the lender's position. I wouldn't notarize it, but I'd have no qualms about accompanying mom to the signing and supervising. (The other notary would Loooove that... but they'd just have to get over it.)