Notary Public Risk Management & Assessment 2 — Questions and Answers
Question 1: A signer appears extremely nervous and repeatedly asks the notary to 'just sign it quickly without reading it.' What risk does this behavior signal?
- The signer is likely late for an appointment
- The signer may be under duress or coercion (Correct answer)
- The signer is unfamiliar with legal documents
- The signer prefers a faster notarization process
Correct answer: The signer may be under duress or coercion
Urgency combined with discouraging careful review is a classic indicator that the signer may be acting under coercion or duress, which invalidates willingness.
Question 2: Which of the following scenarios presents the GREATEST identity fraud risk to a notary?
- A signer presents a current passport with a photo that closely matches their appearance
- A signer presents an expired driver's license and claims their new one is in the mail (Correct answer)
- A signer presents two forms of government-issued ID with matching information
- A signer presents a current state ID issued in the same state as the notarization
Correct answer: A signer presents an expired driver's license and claims their new one is in the mail
An expired ID cannot be accepted as valid identification, and the explanation that the replacement is pending is a common tactic used by fraudsters.
Question 3: A notary receives a request to notarize a document via email with a scanned signature and is asked to affix the notary seal remotely. What is the primary risk?
- The document may contain typographical errors
- This constitutes improper remote notarization without complying with RON laws (Correct answer)
- The notary may not recognize the document type
- The signer may not have paid the fee in advance
Correct answer: This constitutes improper remote notarization without complying with RON laws
Affixing a seal to a scanned signature without complying with Remote Online Notarization (RON) statutes is illegal and exposes the notary to criminal liability.
Question 4: When a real estate attorney directs a notary to complete multiple loan signings per day without verifying signer identity each time, what should the notary do?
- Follow the attorney's instructions since attorneys are officers of the court
- Comply to maintain the business relationship
- Refuse and insist on verifying identity for every signer on every document (Correct answer)
- Verify identity only for the first document in each package
Correct answer: Refuse and insist on verifying identity for every signer on every document
A notary is personally and legally responsible for verifying each signer's identity regardless of instructions from any third party.
Question 5: What is 'notary shopping' and why is it a red flag for fraud risk?
- When a signer compares notary fees across multiple providers
- When a signer seeks multiple notaries until finding one who will notarize without proper verification (Correct answer)
- When a business hires a notary on retainer for bulk documents
- When a notary advertises services at lower rates than competitors
Correct answer: When a signer seeks multiple notaries until finding one who will notarize without proper verification
Notary shopping occurs when fraudulent actors seek a compliant or careless notary who will skip required verification steps.
Question 6: A notary's journal entry for a notarization is later found to be missing. Which risk does this primarily create?
- The notary may lose commission renewal eligibility
- The notary cannot defend against claims that the notarization never occurred or was fraudulent (Correct answer)
- The document's legal effect is automatically voided
- The signer can demand a refund of any fees paid
Correct answer: The notary cannot defend against claims that the notarization never occurred or was fraudulent
A complete journal entry is the notary's primary defense against allegations of improper notarization or fraud.
Question 7: A notary is presented with a power of attorney document and asked to notarize the signature of the attorney-in-fact acting on behalf of a principal. What risk assessment step is most critical?
- Confirming the document was drafted by a licensed attorney
- Verifying the identity of the attorney-in-fact who is physically present and signing (Correct answer)
- Obtaining the principal's notarized permission before proceeding
- Checking that the power of attorney was recorded at the county recorder's office
Correct answer: Verifying the identity of the attorney-in-fact who is physically present and signing
The notary must verify the identity of the person physically present and signing, which is the attorney-in-fact, not the absent principal.
Notary Public Risk Management & Assessment 2
A signer appears extremely nervous and repeatedly asks the notary to 'just sign it quickly without reading it.' What risk does this behavior signal?