Posted by Abraham Sandoval on 1/26/09 9:35pm
Msg #275649

can a real estate agent notarize his own client's paperwork?

the manual states if the the person is acting as an agent he can do so, but i am still unsure

Reply by davidK/CA on 1/26/09 9:40pm
Msg #275651

Re: can a real estate agent notarize his own client's paperw

Not if he/she has a financial interest in the transaction, which seems logical under the circumstances of it being "his own client".

Reply by MW/VA on 1/26/09 9:40pm
Msg #275652

No, you can't, because you have a financial interest in the transaction.

Reply by Abraham Sandoval on 1/26/09 9:44pm
Msg #275653

Re: can a real estate agent notarize his own client's paperw

Oh ok because the there is a booklet that stated a notary can if they are acting in the capacity of an agent to their buyer/seller they were allowed to. I guess not. Thanks for the info

Reply by SharonMN on 1/27/09 10:05am
Msg #275689

Re: can a real estate agent notarize his own client's paperw

Even if permitted under state notary laws, consider whether this would pass the "front page of the Wall Street Journal" test. That is, if there was a story about this transaction in the paper saying somebody claimed there was something fishy going on, would the fact that the real estate agent notarized the papers contribute to the "fishy smell"?

I generally avoid notarizing any document where there is the APPEARANCE of a conflict, even if it might be technically OK.

Reply by John_NorCal on 1/26/09 9:52pm
Msg #275656

This has been discussed ad nauseum......

Yes you may notarize a clients paperwork. It has been determined and ruled on by the SOS that an agents financial interest of commissions does not equate to the interest derived as if they are going on title. In effect it is a customer service function of the agent as a real estate licensee I have met clients while they are camping to notarize a transaction. This may not be the case in other states, but it has been this way since I first became a California notary in 1974.

Reply by John_NorCal on 1/26/09 9:56pm
Msg #275658

P.S. Abraham.....

you found your answer in the manual. That is what you should rely on for any California notary question. Don't rely on what you hear on a public forum and especially from someone from another state as rules are different for every state.

Reply by Abraham Sandoval on 1/26/09 10:01pm
Msg #275660

Re: P.S. Abraham.....

thanks John, i remembered reading this somewhere in the manual but i asked other notaries i know and they said i could not. I guess they do not even know the rules themselves. Thanks again John for confirming.

Reply by Gary_CA on 1/26/09 11:52pm
Msg #275668

Yes you can but no you wouln' n/m

Reply by Gary_CA on 1/26/09 11:56pm
Msg #275669

oops

Yes the SOS specifically allows us to notarize for clients we represent as agents. But it's better not to do it. Some lenders will absolutely freak, some Title Companies will not allow it. (Some expert EO's will explain to you that it's illegal, like your notary friends. You'd think they'd at least read the whole manual before giving legal advice.)

If you're notarizing a deed for the seller that's less complicated.

It's good to know it's allowed and if circumstances force it, go ahead and get the job done. But I like to avoid notarizing escrow docs for my clients, particularly for buyers.

Just like notarizing for family, there are some documents you can others you can't but it's never a bright idea.

You need a notary bud that you can swap favors with in these cases.

Reply by John_NorCal on 1/27/09 12:21am
Msg #275671

Re: oops ---- Hey Gary

Butter fingers!

The key here is to know what your lender wants. I've not had a problem with a lender or title company in this regard. But if in doubt, do as Gary says, get someone else in for the notary, it doesn't hurt.

Reply by Marian_in_CA on 1/27/09 12:02am
Msg #275670

Page 10 of the handbook...

"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 public 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."


The key wording is "direct financial or beneficial interest" - and agents who earn a commission as the result of a transaction generally are not considered direct. Shoot, we, as notaries earn a commission (of sorts) as a result of a transaction... and we can still notarize because it is not a "direct" interest.

HOWEVER... If I were the agent and signed anywhere on the document in my capacity as an agent, then I would probably not notarize just to keep things completely separate and avoid the appearance of a direct interest, even if one does not legally exist. That's just a personal preference, though, and if I had no other option, I'd probably do it.

Reply by JanetK_CA on 1/29/09 7:58pm
Msg #275931

Again, be careful who you listen to.

This post is an excellent example -- we can all be wrong on any given day and laws do vary widely.

I agree with those who say it's a bad idea, even if it is legal under the letter of the CA notary law. Some RE agents who are also notaries (or vice versa) will agree, some will enthusiastically disagree. When the rubber hits the road, we each have to use our own best judgement, because we are the ones who will be ultimately accountable for our notarizations.