IL Notary IL-Notary Identifying and Avoiding Prohibited Acts and Conflicts of Interest 2 — Questions and Answers
Question 1: An Illinois notary is asked to notarize a deed in which she is named as the grantee (recipient of property). What must she do?
- Notarize it since she is not the grantor
- Decline because she has a direct financial interest in the document (Correct answer)
- Notarize it only if a supervisor approves
- Notarize it and disclose the conflict in a separate letter
Correct 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.
Question 2: Which of the following best describes an Illinois notary's obligation when a signer requests legal advice about the document being notarized?
- Provide basic guidance but disclaim it is not legal advice
- Answer only if the notary has a law degree
- Refuse to give legal advice and refer the signer to an attorney (Correct answer)
- Explain the document fully as part of good notarial service
Correct 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.
Question 3: 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?
- Notarize it freely because she has no financial interest
- Notarize it only if another witness is present
- Decline due to the appearance of a conflict of interest and lack of impartiality (Correct answer)
- Notarize it but charge double the normal fee as a conflict disclosure
Correct 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.
Question 4: Under Illinois law, which action by a notary constitutes an unauthorized practice of law?
- Refusing to notarize a document with blank spaces
- Selecting which notarial act—acknowledgment vs. jurat—is appropriate for a signer's document (Correct answer)
- Administering an oath to a witness
- Certifying a copy of a driver's license
Correct 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.
Question 5: 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:
- Permissible as long as he discloses his role as agent
- A disqualifying conflict of interest because he has a financial interest in the transaction (Correct answer)
- Acceptable because real estate professionals routinely notarize their own deals
- Permitted only if the buyer waives the conflict in writing
Correct 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.
Question 6: An Illinois notary charges $25 per notarial act. The Illinois maximum fee is $5 per signature. The notary's overcharging is:
- Permissible if both parties agree in writing
- A prohibited act that can result in suspension or revocation of the commission (Correct answer)
- Fine as long as the notary is a private employee not working for a government agency
- Acceptable for after-hours or weekend notarizations
Correct 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.
Question 7: 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:
- Allowed because the client authorized it
- Prohibited because completing blank spaces in legal documents is the practice of law (Correct answer)
- Fine as long as the notary notes the additions in the notarial certificate
- Permitted only for simple fill-in-the-blank forms
Correct 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.
IL Notary IL-Notary Identifying and Avoiding Prohibited Acts and Conflicts of Interest 2
An Illinois notary is asked to notarize a deed in which she is named as the grantee (recipient of property).
What must she do?