IL-Notary Identifying and Avoiding Prohibited Acts and Conflicts of Interest Flashcards

An Illinois notary is asked to notarize a deed in which she is named as the grantee (recipient of property). What must she do?

Answer: Decline because she has a direct financial interest in the document

Illinois law prohibits a notary from notarizing any document in which they have a direct financial or beneficial interest.

Which of the following best describes an Illinois notary's obligation when a signer requests legal advice about the document being notarized?

Answer: Refuse to give legal advice and refer the signer to an attorney

Notaries are prohibited from practicing law; giving legal advice—including explaining document terms—constitutes the unauthorized practice of law in Illinois.

A notary's spouse asks her to notarize his signature on a home equity loan agreement. The notary has no financial interest in the loan. Under Illinois law, what is the best course of action?

Answer: Decline due to the appearance of a conflict of interest and lack of impartiality

Illinois notaries must be impartial and avoid situations where their objectivity could reasonably be questioned, including notarizing for a spouse.

Under Illinois law, which action by a notary constitutes an unauthorized practice of law?

Answer: Selecting which notarial act—acknowledgment vs. jurat—is appropriate for a signer's document

Choosing the correct type of notarial act for a legal document requires legal judgment; only a licensed attorney may advise on this for a client.

A notary is also a commissioned real estate agent. He is asked to notarize a purchase agreement in a transaction from which he will earn a commission. This is:

Answer: A disqualifying conflict of interest because he has a financial interest in the transaction

Earning a commission on the transaction gives the notary a direct financial interest, disqualifying him from notarizing documents related to that deal.

An Illinois notary charges $25 per notarial act. The Illinois maximum fee is $5 per signature. The notary's overcharging is:

Answer: A prohibited act that can result in suspension or revocation of the commission

Illinois law caps notarial fees at $5 per signature; charging more is a prohibited act subject to disciplinary action.

A notary who is also a paralegal fills in blank spaces on a legal contract at the client's direction before notarizing the client's signature. This conduct is:

Answer: Prohibited because completing blank spaces in legal documents is the practice of law

Completing substantive blank spaces in legal documents constitutes the unauthorized practice of law, which is prohibited for notaries.