RI Notary Fees and Liability 2 — Questions and Answers
Question 1: Under Rhode Island law, how are notary fees for standard notarial acts regulated?
- State law does not set a maximum fee, so any fee charged should be reasonable and agreed upon in advance (Correct answer)
- The Secretary of State sets a mandatory $2 fee for every act
- Notaries must always perform acts free of charge
- Fees are set annually by each city or town council
Correct answer: State law does not set a maximum fee, so any fee charged should be reasonable and agreed upon in advance
Rhode Island statutes do not fix a maximum notary fee, so notaries should charge a reasonable fee disclosed and agreed to before performing the act.
Question 2: A Rhode Island notary wants to charge for driving to a signer's home. What is the best practice?
- Disclose the travel charge separately and obtain the signer's agreement before traveling (Correct answer)
- Add the travel cost to the notarial fee without mentioning it
- Bill the signer only after the notarization is complete
- Travel charges are illegal for notaries in every state
Correct answer: Disclose the travel charge separately and obtain the signer's agreement before traveling
Any travel or convenience charge should be itemized separately and agreed to in advance so the signer is not surprised or misled.
Question 3: If a Rhode Island notary negligently fails to properly identify a signer and someone suffers a financial loss, the notary may be:
- Personally liable in a civil lawsuit for damages caused by the negligence (Correct answer)
- Immune from all liability because notaries are state officers
- Liable only if the loss exceeds $10,000
- Responsible only for refunding the notary fee
Correct answer: Personally liable in a civil lawsuit for damages caused by the negligence
Notaries are personally responsible for damages caused by their negligence or misconduct in performing official acts.
Question 4: Which of the following does Rhode Island require a notary public to purchase before receiving a commission?
- Neither a surety bond nor errors and omissions insurance (Correct answer)
- A $10,000 surety bond
- A $25,000 errors and omissions policy
- Both a bond and an insurance policy
Correct answer: Neither a surety bond nor errors and omissions insurance
Rhode Island does not require notaries to obtain a surety bond or errors and omissions insurance, although E&O coverage is an optional protection.
Question 5: What is the primary purpose of errors and omissions (E&O) insurance for a notary?
- To protect the notary from personal financial loss caused by unintentional mistakes (Correct answer)
- To guarantee payment of the notary's fees by clients
- To reimburse the state for administrative costs
- To replace the need for proper identification of signers
Correct answer: To protect the notary from personal financial loss caused by unintentional mistakes
E&O insurance protects the notary personally by covering damages arising from unintentional errors made while performing notarial acts.
Question 6: A Rhode Island notary who knowingly notarizes a signature without the signer being present may face:
- Commission revocation and potential civil and criminal penalties (Correct answer)
- Only a verbal warning from the Secretary of State
- No consequences if the document was never used
- A mandatory fee refund and nothing more
Correct answer: Commission revocation and potential civil and criminal penalties
Falsely certifying an appearance is official misconduct that can result in loss of the commission plus civil and criminal liability.
Question 7: When may a Rhode Island notary's employer face liability for the notary's improper notarization?
- When the notarization was performed within the scope of the notary's employment (Correct answer)
- Never, because liability always stays with the notary alone
- Only if the employer holds the notary's commission certificate
- Only when the employer is a bank or law firm
Correct answer: When the notarization was performed within the scope of the notary's employment
An employer may share liability when a notary-employee commits misconduct while acting within the scope of employment.
