As a Notary Signing Agent, I make my living in the gray area of being both an impartial witness AND a signing agent for the title company/lender. I have long since decided to "reconcile" this by informing the borrowers that I am there to do 2 things -- and to explain briefly what a Notary does and what a Signing Agent does. This is part of my introductory spiel that I use to move us from chit-chat into the actual signing process and it also gives me the chance to let them know that I am not an attorney and cannot give legal advice or legal opinions, so they should make use of their 3 day right-to-cancel to consult an attorney if they have any legal questions about the transaction.

This is not that different from how I initially became a Notary Public back in the 90s -- I was a legal secretary and my attorney-boss wanted me to be able to notarize docs where he was one of the signers. All the paralegals and most of the legal secretaries at that firm were notaries (as were all but a few of the attorneys) and you could argue that none of us were totally disinterested parties as the firm always represented one side or the other in disputes. However, here in Tennessee, the Legislature has at least partially acknowledged this gray area by specifically stating that additional fees can be charged by the notary if they did additional work on the matter before them - such as drafting the legal document or providing stenographical or other related services.

So, I have always taken the line that what counts is whether I have a direct interest in the transaction. If it does not matter financially or otherwise to me personally, I am able to make the distinction and be impartial. If my only involvement is an employee of one side and I will be paid the same whether the transaction goes through or not, I am disinterested. (This is also reflected in my fees as an NSA -- once I arrive at the home, I expect to be paid the same for a completed signing as for one that crashes and burns, unless I did something to cause it to crash.)

However, I would NEVER notarize for a relative. Most states I have heard about assume that you have a vested interest in any transactions that your relatives make. Whatever your parents, siblings, kids, grandparents, grandkids, or other close relatives do could affect your own finances either now or in the near future, so it is not unreasonable to steer clear of any appearance of being an interested party by having your relatives get their docs notarized by someone outside the family.


Of course, all of this is based on the practise and my understanding of the laws and regs here in Tennessee. Your state may vary from that (and please do not assume that the National Notary Association or any other "national" group can tell you what your state has in the way of laws and regs -- you need to consult an attorney in your state for this legal advice and legal opinions).

-- Tim Gatewood
Traveling Notary Public, Certified Notary Signing Agent & Field Inspector
Notary Memphis
http://notarymemphis.com


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