Posted by notarydi/CA on 8/21/13 1:00am
Msg #481341

interesting verbage....

in some escrow instructions tonight. In a nutshell, "Borrower agrees that mobile notary service has been arranged as an accommodation. In the event the transaction cancels, borrower agrees to handle payment in full outside of escrow to mobile notary or signing service. " and, basically, hold escrow harmless and no legal or financial responsibility to pay notary/service. perhaps this isn't new wording, but first I have noticed it.....

Reply by Marian_in_CA on 8/21/13 1:39am
Msg #481345

That's interesting indeed. BUT... in reality not something the notary really needs to worry about. Ultimately, whoever hired the notary is responsible for paying him/her.

I think it might be worded oddly, though... it shouldn't say that the borrower agrees to pay the notary or signing service directly... but to compensate the escrow/title for any charges they incur as a result of or prior to canceling the loan, namely, paying out to certain non-loan related vendors (such as courier and notary services).

Reply by Lee/AR on 8/21/13 3:35am
Msg #481349

Interesting, yes, and snarky, too. What they are basically saying is that the notary is not going to be paid in the event the loan cancels. The wording used does NOT create a valid enforceable contract for the B to pay the notary, yet absolves the hiring party from paying--so, yes, I think you DO have to worry about it.

About 6-7 years ago, a certain RM/HECM lender/tc had this wording in a document that had to be signed by the B and, upon checking this out with an attorney and being told it was unenforceable, I had to get an agreement from the hiring co. that I would be paid regardless of outcome...each and every time.

Eventually, this company dropped this 'B pays' form. Sorry, I don't remember who the lender/tc was.

Reply by Marian_in_CA on 8/21/13 4:00am
Msg #481351

Yes, but nothing the borrower signs can interfere with or negate the business agreement between two other parties, unless they've somehow agreed to it as well. As a general rule, the notary isn't hired by the borrower, and the fee agreement between the notary and their hiring party has nothing to do with the borrower.

Reply by VT_Syrup on 8/21/13 5:27am
Msg #481353

The notary could decide the clause reflects upon the creditworthiness of the hiring entity, and decline to extend credit to the hiring entity.

Reply by jba/fl on 8/21/13 10:09am
Msg #481366

The flaw in that is that the notary has no idea until AFTER s/he arrives, having spent time, effort, printing, gas, tolls, etc. and now is faced with that. I'm with Lee on this, and my confirmation to the confirmation states I will be paid in full no matter what and I am not there to sell their loan in any manner.