Avoiding Lawsuits as a Notary

As a notary, you can face allegations of fraud, coercion, or financial harm and get pulled into a lawsuit or complaint simply because your name and seal appear on a document. The best way to protect yourself is to follow your state’s notary laws and best practices. 

Steps Notaries Can Take to Avoid Complaints and Lawsuits:

Require the Signer to Personally Appear Before You

A notarization should only be performed when the signer personally appears before you in person (or through communication technology when your state authorizes it). If the signer is not present, refuse to perform the notarization—even if the request comes from a close friend or family member.

For example, when someone says, “My husband is at work—can you notarize his signature?” or “My mom already signed it—can you just stamp it?”, explain that the signer must be present to sign (or acknowledge the signature) and then refuse the notarization.

Examine the Signer’s ID Carefully

If you do not personally know the signer, carefully examine their ID. Check the photo, name, signature, expiration date, and any signs of tampering. Compare the person in front of you to the photo on the ID—not just the name on the document and the name on the ID. Does the hair color, eye color, height, and overall appearance reasonably match the signer in front of you? If the ID does not look right, request another acceptable form of identification. In a lawsuit or complaint, you may need to show that you exercised due diligence and explain why you accepted the ID.

Confirm Willingness and Awareness

A notarization may be challenged if a signer later claims they were coerced into signing, were confused, impaired, or were not acting voluntarily at the time of notarization. Before proceeding with a notarization, ask the signer if they understand what is being signed and confirm that they are signing willingly. If someone is rushing the signer, answering for the signer, or controlling the conversation, consider refusing the notarization or suggest rescheduling it when the signer can speak and sign voluntarily.

Make Sure the Document Is Ready

Avoid notarizing documents that are incomplete or contain blank spaces to be filled in later, except when the blanks are clearly reserved to be completed by a government agency or another official office. A notary is not responsible for the document’s content, but an incomplete document can lead to disputes and accusations later.

Example: A document has a blank line for the property address or legal description, and the signer says they will “add the information after it’s notarized.” In this case, require the blanks to be filled in or decline the notarization. Blank spaces on a document can be filled in after the notarization, and if the final version later causes financial harm to another person, you may be named in a lawsuit or complaint alleging negligence for notarizing a document with blank spaces.

Carefully Complete the Notarial Certificate

Mistakes on a notarial certificate can cause a document to be rejected and may later lead to a complaint or lawsuit against you. Check the name, date, and venue on the notarial certificate—even if they are preprinted—to make sure they are correct and match the signer and the notarization details. Complete every blank at the time of notarization and never sign or affix your notary stamp or seal to a blank notarial certificate. If you must attach a loose certificate, attach it securely so it does not become separated from the document.

Document Each Notarization in Your Journal

Your notary journal is your first line of defense if a notarization is ever questioned. Record what your state requires and add enough details to help you recall the notarization later, such as the document type, the number of pages, whether the notarial certificate was included in the document or you attached one, and whether you corrected the venue or the name printed on the notarial certificate.

Never Notarize After Your Commission Expires

Your authority to notarize ends when your commission expires. A notarization performed with an expired notary stamp or seal can create serious problems for the signer and may expose you to administrative penalties and civil liability. Renew early and keep track of your commission expiration date so you do not accidentally notarize after your notary commission expires. Dispose of your expired notary seal and stamp as required by your state’s notary laws and rules to prevent them from being fraudulently used.

Do Not Give Legal Advice

If you are not an attorney, do NOT help a signer draft a document, fill in blanks, or choose a notarial certificate. Doing so may be considered the unauthorized practice of law. Although your intention may be to help, giving advice may increase your risk of a lawsuit or administrative penalty. If the signer has questions about what to write, suggest that the signer speak to the document issuer or an attorney. Your role is to identify the signer and complete the notarization according to your state’s notary laws.

Protect Your Notary Stamp/Seal

Your notary stamp or seal can be used fraudulently if it is lost, misplaced, or stolen. As a consequence, you could be sued. Keep your stamp and seal under your control at all times and store it in a locked drawer or case when not in use. Do not leave it in your car or on your desk and never let anyone “borrow” it. If your stamp or seal is lost or stolen, follow your state’s laws and regulations to report the loss or theft and obtain a replacement.

Avoid Discrimination

Treat all signers equally. Do not refuse service based on age, color, religion, or any other personal factor. If you refuse a notarization, base the decision on a notary-related reason, such as the signer did not personally appear before you, the identification document presented was unacceptable, or the signer could not communicate or understand the consequences of signing the document. When refusing to notarize, keep your tone professional, briefly explain the reason for declining, and make a note in your notary journal about the refusal. An appropriate refusal today can prevent a lawsuit in the future.

Even when you perform every notarization correctly, you may still be named in a lawsuit, and legal defense can cost thousands of dollars. To help protect yourself, consider purchasing a notary errors and omissions (E&O) insurance policy. E&O insurance may help cover legal defense costs and other expenses caused by unintentional notarial mistakes, up to the policy limits. If you notarize frequently or handle high-value documents, E&O insurance can help reduce your financial risk.