AR Notary AR-Notary Prohibited Acts and Conflicts of Interest 2 — Questions and Answers
Question 1: Under Arkansas law, a notary public is prohibited from notarizing a document in which the notary is:
- A named party to the transaction (Correct answer)
- An employee of one of the parties
- A neighbor of the signer
- A member of the same church as the signer
Correct answer: A named party to the transaction
Arkansas notaries may not notarize documents to which they are a party or in which they have a direct financial or beneficial interest.
Question 2: An Arkansas notary is asked to notarize a deed that grants property to the notary's own name. What must the notary do?
- Refuse to perform the notarization (Correct answer)
- Notarize it but note the interest in the journal
- Charge a reduced fee
- Have a witness co-sign the certificate
Correct answer: Refuse to perform the notarization
A notary who is a grantee or beneficiary of a document has a disqualifying interest and must decline.
Question 3: Which act is an Arkansas notary NOT authorized to perform?
- Preparing legal documents for others as a non-attorney (Correct answer)
- Administering an oath
- Taking an acknowledgment
- Witnessing a signature
Correct answer: Preparing legal documents for others as a non-attorney
Preparing legal documents or giving legal advice as a non-attorney constitutes the unauthorized practice of law.
Question 4: A signer asks an Arkansas notary, 'Which type of deed should I use?' The notary should:
- Decline to answer and suggest consulting an attorney (Correct answer)
- Recommend a quitclaim deed
- Explain the pros and cons of each deed
- Choose the deed the notary uses most often
Correct answer: Decline to answer and suggest consulting an attorney
Advising which document to use is legal advice, which non-attorney notaries may not give.
Question 5: An Arkansas notary may lawfully refuse to notarize a document when:
- The signer cannot be satisfactorily identified (Correct answer)
- The signer belongs to a different political party
- The document is written in a language the signer speaks fluently
- The signer is not a customer of the notary's employer
Correct answer: The signer cannot be satisfactorily identified
A notary must refuse when identity cannot be verified, but may not refuse for discriminatory or arbitrary reasons.
Question 6: Which situation creates a disqualifying conflict of interest for an Arkansas notary?
- The notary will receive a commission from the transaction being notarized (Correct answer)
- The notary works for the title company handling the closing
- The notary knows the signer socially
- The notary previously notarized for the same signer
Correct answer: The notary will receive a commission from the transaction being notarized
A direct financial benefit from the transaction, beyond the notarial fee, disqualifies the notary.
Question 7: An Arkansas notary who is a shareholder of a corporation is generally permitted to notarize corporate documents if:
- The notary is not individually a party and gains no direct benefit from the document (Correct answer)
- The notary owns less than 50% of the shares
- The board approves in writing
- The document is filed with the Secretary of State
Correct answer: The notary is not individually a party and gains no direct benefit from the document
Employees or shareholders may notarize for their company as long as they are not personally a party and receive no direct benefit from the specific document.
AR Notary AR-Notary Prohibited Acts and Conflicts of Interest 2
Under Arkansas law, a notary public is prohibited from notarizing a document in which the notary is: