Liability and Disciplinary Actions Flashcards
6 cards from real NC NOTARY practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Liability and Disciplinary Actions flashcards as text
A North Carolina notary performs a notarial act but fails to properly identify the signer, resulting in a fraudulent transaction causing financial harm. Beyond the potential for criminal charges and commission revocation, what specific liability does the notary face?
Answer: Liability for all damages proximately caused by the official misconduct.
According to North Carolina law and general notary principles, a notary is liable in a civil lawsuit for all damages proximately caused by their official misconduct, such as failing to properly identify a signer. This financial liability is separate from any administrative penalties from the Secretary of State or criminal charges.
Which of the following actions constitutes a Class 1 misdemeanor for a North Carolina notary?
Answer: Taking an acknowledgment without the principal personally appearing before the notary.
North Carolina General Statute 10B-60(c)(1) explicitly states that a notary is guilty of a Class 1 misdemeanor if they take an acknowledgment without the principal personally appearing before them. Failing to report a lost seal is a separate violation, overcharging is an infraction, and refusing service due to suspected coercion is a required and proper action.
A notary's commission expires. Two weeks later, before receiving their renewed commission, the individual notarizes a document for a friend as a favor. According to G.S. 10B-60, this person could be found guilty of what offense?
Answer: A Class 1 misdemeanor.
G.S. 10B-60(b)(2) specifies that performing a notarial act when the person's commission has expired or been suspended is a Class 1 misdemeanor. It is a serious offense to act as a notary without a valid, active commission.
A notary's employer, who is also a real estate agent, pressures the notary to backdate a deed by one day to meet a contract deadline. The employer threatens the notary's job if they refuse. If a third party knowingly influences a notary to commit official misconduct, what is their legal culpability?
Answer: They are guilty as an aider and abettor and subject to the same punishment as the notary.
Under G.S. 10B-60(j), any person who knowingly solicits, coerces, or in any material way influences a notary to commit official misconduct is guilty as an aider and abettor and is subject to the same level of punishment as the notary who committed the misconduct.
If a North Carolina notary knowingly takes an acknowledgment of a signature on a document with the intent to commit fraud, what is the most severe criminal penalty they could face?
Answer: A Class I felony.
According to G.S. 10B-60(d), a notary who takes an acknowledgment without the principal appearing, with the intent to commit fraud, is guilty of a Class I felony. This is one of the most serious offenses a notary can commit, reflecting the severe breach of public trust.
A notary resigns their commission while under investigation by the Secretary of State for alleged misconduct. What is the consequence of this resignation on the investigation?
Answer: The investigation continues to a conclusion and may become a matter of public record.
Per G.S. 10B-60(h), the resignation or expiration of a notarial commission does not terminate or preclude an investigation into a notary's conduct by the Secretary of State. The Secretary may pursue the investigation to its conclusion, and the findings can be made public.