Notary Public Exam Fees, Bonds and Commission Requirements — Questions and Answers
Question 1: Who sets the maximum fee a notary may charge for a notarial act in most states?
- The notary, based on local market rates
- State law or the commissioning authority (Correct answer)
- The National Notary Association
- The county clerk where the notary lives
Correct answer: State law or the commissioning authority
In most states, maximum notary fees are fixed by statute or by the Secretary of State's regulations. A notary may charge less than the maximum but never more.
Notary fees are a matter of state law. Most states publish a schedule of maximum fees per notarial act (for example, per acknowledgment or per jurat). A notary is free to charge less than the maximum or nothing at all, but charging more than the statutory cap is a violation that can lead to discipline or loss of commission. Some states allow separate, reasonable travel fees if agreed to in advance, while a few states set no maximum at all. Always check your own state's current fee schedule.
Question 2: What is the primary purpose of a notary surety bond?
- To protect the notary from lawsuits
- To pay the notary's commission application fee
- To protect the public from financial loss caused by the notary's misconduct or negligence (Correct answer)
- To guarantee the notary passes the state exam
Correct answer: To protect the public from financial loss caused by the notary's misconduct or negligence
A notary bond protects the public, not the notary. If a notary's error or misconduct causes someone a financial loss, the injured party can make a claim against the bond.
Many states require a notary to file a surety bond before receiving a commission. The bond is a three-party agreement between the notary, the surety company, and the state. If the notary's negligence or wrongdoing causes a member of the public to lose money, the injured person can recover from the bond up to its face amount. Critically, the surety company can then demand repayment from the notary. The bond is therefore a form of consumer protection, not insurance for the notary. Errors and omissions insurance is the product that protects the notary personally.
Question 3: If a claim is paid out on a notary's surety bond, what typically happens next?
- The notary owes nothing further
- The surety company may seek reimbursement from the notary (Correct answer)
- The state cancels all notary bonds
- The claimant must return the money after one year
Correct answer: The surety company may seek reimbursement from the notary
A surety bond is not insurance for the notary. After paying a valid claim, the surety company has the right to recover the amount from the notary personally.
Under a surety bond, the surety promises to pay if the notary fails to perform properly, but the notary remains ultimately responsible. Once the surety pays a claim, it can pursue the notary for indemnification of the full amount plus costs. This is why many notaries also carry errors and omissions (E&O) insurance, which is a separate, voluntary policy that actually protects the notary's own finances against claims of unintentional error.
Question 4: Which of the following best describes errors and omissions (E&O) insurance for a notary?
- A mandatory bond required in every state
- A voluntary policy that protects the notary against claims of unintentional mistakes (Correct answer)
- A government fund that reimburses signers
- A replacement for the notary journal
Correct answer: A voluntary policy that protects the notary against claims of unintentional mistakes
E&O insurance is optional in virtually all states and covers the notary's own liability for honest mistakes. It is distinct from the surety bond, which protects the public.
Errors and omissions insurance is purchased voluntarily by the notary to cover legal defense costs and damages arising from unintentional errors in performing notarial acts. Unlike the surety bond, the insurer generally does not seek repayment from the notary after paying a covered claim. E&O policies typically do not cover intentional misconduct or fraud. Because a surety bond leaves the notary personally exposed, professional organizations commonly recommend that notaries carry E&O coverage even where it is not required.
Question 5: In most states, a notary public commission is valid for what length of time?
- For life
- A fixed term, commonly four years, set by state law (Correct answer)
- Only until the notary changes employers
- One year, renewable monthly
Correct answer: A fixed term, commonly four years, set by state law
Commissions are issued for a fixed term defined by state law. Four years is the most common term, though some states use other periods such as five, six, or ten years.
A notary commission is a time-limited appointment. The term is set by each state's statute; many states use four years, while others use terms ranging from roughly three to ten years. The commission expiration date is typically required to appear on the notary's seal or certificate. A notary who performs a notarial act after the commission has expired is acting without authority, which can invalidate the act and expose the notary to penalties. Renewal usually requires a new application, and in some states a new exam, bond, and seal.
Question 6: A notary charges a signer for travel to the signer's home in addition to the notarial fee. Which statement is generally accurate?
- Travel fees are always prohibited
- Travel fees are permitted in many states if reasonable and agreed to in advance, and are separate from the notarial fee (Correct answer)
- Travel fees replace the statutory notarial fee
- Travel fees must be paid to the state
Correct answer: Travel fees are permitted in many states if reasonable and agreed to in advance, and are separate from the notarial fee
Many states allow a notary to charge a separate travel fee as long as the signer agrees beforehand and it is not represented as part of the notarial fee. Rules vary, so notaries must check their own state's law.
The statutory maximum fee applies to the notarial act itself. Travel to a signer's location is a separate service, and many states permit a reasonable travel charge if the signer is told about it and agrees before the notary travels. Some states cap travel fees or require them to be itemized separately in the journal; a few restrict them further. A notary must never inflate the notarial fee to hide a travel charge. When in doubt, disclose all fees in writing before performing the act.
Notary Public Exam Fees, Bonds and Commission Requirements
Who sets the maximum fee a notary may charge for a notarial act in most states?