NSA - Notary Signing Agent Preventing Unauthorized Practice of Law Questions and Answers

Question 1

A married couple signing a Deed of Trust asks the Notary Signing Agent, "We're listed as 'community property,' but our friend said we should be 'joint tenants.' What is the legal difference and which one is better for us?" What is the appropriate response from the NSA?

Accepted Answer

Explain that they cannot give legal advice and must direct the question to their lender, title company, or an attorney.

Answer

Explaining, interpreting, or advising on different ways to hold title to a property (vesting) is considered the unauthorized practice of law. The NSA's role is to be an impartial witness, not a legal advisor. The only correct action is to refer the borrowers to a qualified professional, such as their lender or an attorney, for clarification before they sign.

Question 2

Which of the following actions by a Notary Signing Agent constitutes the unauthorized practice of law (UPL)?

Accepted Answer

Advising a borrower that waiving their three-day right to cancel would be a good idea to expedite the loan funding.

Answer

Advising a borrower on the advisability of a decision, such as waiving a legal right, is a clear example of providing unauthorized legal and financial advice. An NSA may identify a document, point to where a signature is needed, and refer questions, but must not influence the borrower's decisions.

Question 3

During a signing, a borrower points to the prepayment penalty clause in the Promissory Note and asks, "Can you help me understand what this means for me financially if I sell my home in two years?" What is the NSA's most appropriate course of action?

Accepted Answer

State that they cannot interpret loan terms and advise the borrower to contact their loan officer for an explanation.

Answer

Interpreting legal clauses and explaining their financial implications is a form of legal and financial advice, which NSAs are strictly prohibited from giving. The correct and professional response is to halt the signing on that document and have the borrower get clarification directly from the lender or another authorized party.

Question 4

A document in the loan package contains a blank line where the borrower is expected to write in a date, but the instructions are unclear. The borrower asks the NSA what date they should use. How should the NSA proceed?

Accepted Answer

Instruct the borrower to stop and contact their lender or the title company to get the correct information.

Answer

A Notary Signing Agent must not provide or suggest substantive information to be entered into a document, as this constitutes UPL. Instructing a signer to leave a material line blank is also improper. The only correct action is to have the borrower obtain the necessary information from the contracting company (lender or title) to ensure the document is completed accurately.

Question 5

To avoid engaging in the unauthorized practice of law, a Notary Signing Agent must refrain from which of the following activities?

Accepted Answer

Expressing a personal opinion on whether the loan's interest rate is fair.

Answer

An NSA must remain impartial and cannot offer personal opinions or advice regarding the loan terms, as this crosses into the unauthorized practice of law. The other three options—verifying identity, ensuring correct dating, and using the proper notarial certificate—are all core, required duties of a notary public and signing agent.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA - Notary Signing Agent Preventing Unauthorized Practice of Law Questions and Answers