RI Notary Fees and Liability 3 — Questions and Answers
Question 1: A signer asks a Rhode Island notary to explain which type of notarial certificate their document needs. The notary should:
- Ask the signer to choose or consult the document's issuing agency or an attorney (Correct answer)
- Select the certificate the notary thinks is best
- Refuse to notarize the document entirely
- Charge an extra consultation fee and pick one
Correct answer: Ask the signer to choose or consult the document's issuing agency or an attorney
Choosing the certificate type for a signer is the unauthorized practice of law, so the signer or a qualified professional must decide.
Question 2: Why is advertising notary services in Spanish using the term 'notario publico' risky for a non-attorney Rhode Island notary?
- It can mislead people into believing the notary is a licensed legal professional (Correct answer)
- Spanish-language advertising is banned in Rhode Island
- The term is trademarked by the American Bar Association
- It automatically doubles the notary's liability insurance premiums
Correct answer: It can mislead people into believing the notary is a licensed legal professional
In many Latin American countries a 'notario publico' is a highly trained attorney, so using the term can deceive the public about the notary's authority.
Question 3: A Rhode Island notary performs a notarization correctly but the underlying transaction turns out to be fraudulent. The notary is generally:
- Not liable, because the notary is responsible only for the notarial act, not the transaction (Correct answer)
- Fully liable for all losses from the fraud
- Liable for half of the victim's losses
- Required to repay the fraudster's gains to the state
Correct answer: Not liable, because the notary is responsible only for the notarial act, not the transaction
A notary who properly performs the notarial act is not a guarantor of the transaction's legitimacy and is generally not liable for the parties' fraud.
Question 4: Which practice best protects a Rhode Island notary against future liability claims?
- Keeping a detailed journal of each notarial act performed (Correct answer)
- Charging higher fees to fund potential lawsuits
- Notarizing only for people the notary knows personally
- Refusing to notarize any document over ten pages
Correct answer: Keeping a detailed journal of each notarial act performed
Although not mandatory for traditional acts in Rhode Island, a journal creates evidence of proper procedure that can defeat negligence claims.
Question 5: A Rhode Island notary charges a fee for a notarization but never discloses the amount until after signing. This practice is:
- Improper, because fees should be disclosed and agreed upon before the service (Correct answer)
- Acceptable, since notaries may bill at any time
- Required by state law to avoid influencing the signer
- Legal only for real estate documents
Correct answer: Improper, because fees should be disclosed and agreed upon before the service
Ethical standards call for fees to be communicated and accepted before the notarial act to prevent disputes and overreaching.
Question 6: If a Rhode Island notary is sued for a notarization error and has no E&O insurance, damages awarded would be paid from:
- The notary's own personal assets (Correct answer)
- The state's notary compensation fund
- The Secretary of State's office budget
- The signer's title insurance policy
Correct answer: The notary's own personal assets
Without E&O coverage, a notary found liable must satisfy the judgment from personal funds and property.
Question 7: Which action could lead the Rhode Island Secretary of State to revoke a notary's commission?
- Performing a notarial act on a document with a known false statement of material fact (Correct answer)
- Declining to notarize outside business hours
- Charging no fee for a notarization
- Keeping a journal of notarial acts
Correct answer: Performing a notarial act on a document with a known false statement of material fact
Knowingly participating in a fraudulent or false document is grounds for denial, suspension, or revocation of a commission.
RI Notary Fees and Liability 3
A signer asks a Rhode Island notary to explain which type of notarial certificate their document needs.
The notary should: