NC Notary Liability and Disciplinary Actions 5 — Questions and Answers
Question 1: A notary in North Carolina charges $15 for a single notarial act. What is the consequence?
- No consequence; fees are unregulated in NC
- The notary may be charged with overcharging, a disciplinary violation (Correct answer)
- The notary must refund only the excess amount
- The notarization is void due to the improper fee
Correct answer: The notary may be charged with overcharging, a disciplinary violation
North Carolina law caps notary fees at $10 per notarial act, and charging above this limit is a disciplinary violation subject to sanctions.
Question 2: Under what circumstances may a North Carolina notary face liability even when acting in good faith?
- Never; good faith is a complete defense to all notary liability
- When the notary fails to follow required statutory procedures, causing harm (Correct answer)
- Only when the notary charges an improper fee
- Only when the notary refuses to perform a notarization
Correct answer: When the notary fails to follow required statutory procedures, causing harm
Good faith does not shield a notary from liability if they fail to follow required procedures and that failure causes harm to a party.
Question 3: A notary receives a complaint filed with the Secretary of State's office. What is the first step in the disciplinary process?
- Immediate suspension of the notary's commission
- An investigation to determine if the complaint has merit (Correct answer)
- A public hearing open to all citizens
- Automatic referral to law enforcement
Correct answer: An investigation to determine if the complaint has merit
Upon receiving a complaint, the Secretary of State's office conducts an investigation before taking any formal disciplinary action.
Question 4: Which of the following is NOT a recognized disciplinary action the Secretary of State can take against a North Carolina notary?
- Issuing a written reprimand
- Suspending the commission
- Imposing a jail sentence directly (Correct answer)
- Revoking the commission
Correct answer: Imposing a jail sentence directly
The Secretary of State can reprimand, suspend, or revoke a commission, but imposing a jail sentence requires criminal prosecution through the courts.
Question 5: A notary's employer pressures the notary to backdate a notarization. If the notary complies, who bears liability?
- The employer alone, because they gave the order
- The notary alone, because they performed the act
- Both the notary and the employer may be held liable (Correct answer)
- Neither party, because backdating is a civil matter only
Correct answer: Both the notary and the employer may be held liable
Both the notary who performed the improper act and the employer who directed it may face civil and criminal liability for the fraudulent backdating.
Question 6: A notary who refuses to notarize a document because of the signer's race or national origin may face liability under which law in addition to notary statutes?
- Only North Carolina notary regulations
- Federal and state anti-discrimination laws (Correct answer)
- The NC Real Estate Commission rules only
- Local county ordinances only
Correct answer: Federal and state anti-discrimination laws
Refusing notary services based on race or national origin violates federal and state anti-discrimination laws in addition to notary statutes.
Question 7: After a North Carolina notary's commission is revoked, how long must they wait before reapplying?
- 6 months
- 1 year
- 5 years
- The Secretary of State determines the waiting period based on the violation (Correct answer)
Correct answer: The Secretary of State determines the waiting period based on the violation
The Secretary of State has discretion to set the terms under which a former notary may reapply after revocation, as there is no fixed statutory waiting period.
NC Notary Liability and Disciplinary Actions 5
A notary in North Carolina charges $15 for a single notarial act.
What is the consequence?