Posted by Michelle/AL on 8/28/08 10:55am
Msg #262227

eNotarizations and Delaware State

I would like to hear from Delaware Not/Rot members about this new law (click link: http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20080827/NEWS02/808270349) about Delaware moving to eNotarization AND allowing non-Delaware notaries utilize their eNotarization services.

I'm not sure I fully understand the incentive for someone like me to sign up.

Reply by MW/VA on 8/28/08 11:01am
Msg #262232

Especially since Delaware is an "attorney only" state for real estate signings.

Reply by BobbiCT on 8/28/08 11:27am
Msg #262241

National eNotary for Delaware documents

"The new law also allows Delaware to charge a fee of up to $10 for each document notarized electronically. The actual fee has not yet been set ...The state doesn't charge a transaction fee for paper notarizations, because there's no way of keeping track of those transactions, officials said. But with electronic notarizations, the state will have a record of each transaction.
Geisenberger, the assistant secretary of state, declined to provide revenue projections ...
That amount, officials say, could grow significantly if the state program attracts out-of-state notaries, and gets a share of the estimated 950 million documents notarized nationwide each year. One observer of Delaware's corporate scene has his doubts ... although many companies incorporate in Delaware because they want access to the state's specialized Chancery Court, he's not sure how much they'll care about whether their contracts and leases are notarized by a Delaware-sanctioned notary."

"Certainly there is value in the Delaware name," Elson said. "Whether it extends to notaries, I don't know."

My penny thought: It sounds like a profit-making scheme for the State of Delware. Creepy feeling: Anyone in the U.S. can become a Delaware notary (just provide the proper "paperwork", notarize a PAPER document in California as a Delaware notary and the signer takes it away to use. Smells like a great opportunity for 1) shysters to commit fraud using a Delaware notary commission and 2) shysters to commit fraud using a not-too-careful notary who holds a Delaware commission in another state. Both scenarios will make for an interesting and cost expensive inter-state lawsuit - federal court?

If paper can still be filed at a lower cost to the consumer and "instant eFiling" is not needed, I don't see many attorneys or "financial institution notaries" PAYING an additional $10 upfront to eNotarize and billing/explaining to their customers why they are passing on this higher cost.

Reply by PAW on 8/28/08 12:10pm
Msg #262254

Re: National eNotary for Delaware documents

>>> "Anyone in the U.S. can become a Delaware notary (just provide the proper "paperwork" ) <<<

Huh?

Notaries public are appointed by the Governor pursuant to Title 29, Chapter 43, Delaware Code. Delaware law requires that notaries meet the following requirements (29 Del. C. §4301):

1. Good character and reputation;

2. A reasonable need for a notary commission;

3. Legal residence within the State (except non-residents who maintain a Delaware workplace); and

4. Be at least 18 years of age.


This isn't much different than becoming a notary in a lot of states.

Reply by BobbiCT on 8/28/08 12:32pm
Msg #262266

Section of the press release re out-of-state notaries

" new state law that goes into effect Feb. 1 ... State officials hope that ... out-of-state notaries and their primary customers ... start clamoring to use the state's new e-notary system.

Between signing up out-of-state notaries and charging a fee for each electronic transaction, the new law could be "at least a multimillion-dollar opportunity for the state," said Rick Geisenberger, assistant secretary of state. "We think this could become very lucrative for the state," said Geisenberger, whose department oversees the state's notaries."

It reads like as of February 1 the residency requirement is eliminated. I could be misreading.

Reply by TS Wheeler on 8/28/08 12:39pm
Msg #262270

Re: Section of the press release re out-of-state notaries

"Out-of-staters would be limited to lawyers or people working for licensed financial institutions, a potential market of 2 million of the nation's 4.6 million notaries. They would have to register with the state of Delaware and pay the same commissioning fee that in-state notaries pay."

Still an attorney state, eliminates the rest of us unless we work for a "licensed financial institution." Just another moneymaker for DE.

Reply by Gerry_VT on 8/28/08 1:43pm
Msg #262293

Bill text

See Delaware Senate bill 246, which passed and was signed:
http://legis.delaware.gov/LIS/LIS144.nsf/2bede841c6272c888025698400433a04/6751ff3014c293ac8525742c0074993d?OpenDocument&Highlight=0,notary