NC Notary - North Carolina Notary Liability and Disciplinary Actions Questions and Answers 1 — Questions and Answers
Question 1: 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?
- A civil penalty not to exceed $500, payable to the Secretary of State.
- Liability for all damages proximately caused by the official misconduct. (Correct answer)
- A mandatory one-year suspension of their driver's license.
- No further liability, as criminal charges are the exclusive remedy.
Correct 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.
Question 2: Which of the following actions constitutes a Class 1 misdemeanor for a North Carolina notary?
- Charging a travel fee in excess of the federal mileage rate.
- Failing to report a lost seal to the Secretary of State within 10 days.
- Taking an acknowledgment without the principal personally appearing before the notary. (Correct answer)
- Refusing to notarize a document for a person who appears to be coerced.
Correct 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.
Question 3: 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?
- A Class G felony.
- Official negligence, resulting in a formal warning.
- The unauthorized practice of law.
- A Class 1 misdemeanor. (Correct answer)
Correct 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.
Question 4: 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?
- They are immune from prosecution as long as they did not physically alter the document.
- They are guilty as an aider and abettor and subject to the same punishment as the notary. (Correct answer)
- They face a civil fine from the real estate licensing board, but no criminal charges.
- They are only culpable if they financially benefited from the misconduct.
Correct 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.
Question 5: 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?
- A Class 3 misdemeanor.
- Permanent revocation of their commission with no criminal charges.
- A Class I felony. (Correct answer)
- A civil penalty of up to $10,000.
Correct 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.
Question 6: 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?
- The investigation is immediately terminated and the records are sealed.
- The notary can reapply for a new commission after a 30-day waiting period.
- The investigation continues to a conclusion and may become a matter of public record. (Correct answer)
- The investigation is paused until the individual's five-year commission term would have naturally expired.
Correct 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.
NC Notary - North Carolina Notary Liability and Disciplinary Actions Questions and Answers 1
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?