Prohibited Acts and Misconduct Flashcards

A North Carolina notary is a partner in a real estate agency. The notary is asked to notarize a client's signature on a purchase agreement for a property listed by their own agency, from which the notary will receive a commission. Which of the following is the appropriate action for the notary to take?

Answer: Refuse to notarize the signature due to a direct financial interest in the transaction.

North Carolina law disqualifies a notary from performing a notarial act if the notary will receive a direct commission, fee, or other consideration from the transaction that exceeds the statutory notary fee. Because the notary stands to gain a real estate commission, they have a direct financial interest and must refuse to perform the notarization to avoid a conflict of interest.

Which of the following actions by a North Carolina notary constitutes the unauthorized practice of law?

Answer: Advising a signer on the legal implications of the document they are signing.

A notary who is not a licensed attorney is strictly prohibited from giving legal advice. Explaining the legal effects of a document, or advising the signer in any way about the transaction, is considered the unauthorized practice of law. The other options are either permitted or represent responsible notary practice.

A signer brings a document to a North Carolina notary for an acknowledgment. The notary notices that a paragraph containing critical financial terms is completely blank. The signer states they will fill it in after the notarization is complete. How must the notary proceed?

Answer: Refuse to notarize the document until all blank spaces are filled in.

A North Carolina notary is prohibited from notarizing a signature on a document that is incomplete or contains blank spaces. This rule exists to prevent fraudulent alteration of a document after the notarization has been performed. The notary must refuse the service until the document is fully completed.

A North Carolina notary's commission expires at midnight. The next day, before receiving confirmation that their renewed commission is active, a long-time client requests an urgent notarization. Which of the following actions constitutes official misconduct?

Answer: Performing the notarization and using the expired commission information.

It is a Class 1 misdemeanor for a person to perform a notarial act if their commission has expired. A notary's authority ceases the moment their commission expires and does not resume until they have been officially recommissioned and have taken the new oath of office. Using an expired commission is a clear act of misconduct.

A North Carolina notary public is asked to travel to a local hospital to perform a notarization. What is the rule regarding charging a fee for this service?

Answer: A travel fee is permitted, but only if the notary and the signer agree upon the amount in advance of the travel.

North Carolina law allows a notary to charge a fee for travel, in addition to the statutory fee for the notarial act. However, this is only permissible if the notary discloses the fee and the signer agrees to it in writing *before* the notary travels. The fee itself is not set by law but should be reasonable.

Which of the following is an example of a prohibited act for a North Carolina notary public?

Answer: Allowing their non-notary assistant to use the notary's official seal on a document as a matter of convenience.

A notary's official seal is their exclusive tool of office and must be kept secure. A notary is expressly prohibited from allowing another person to use their seal for any reason. Doing so is a serious act of misconduct that undermines the integrity of the notarial act.