IA Notary - Iowa Notary Notary Liability and Ethics Questions and Answers — Questions and Answers
Question 1: An Iowa notary is asked to notarize a property deed for a transaction in which the notary's spouse is the seller. The notary is not a party to the transaction and will not receive any direct financial benefit other than what is shared in their marital assets. What is the correct action for the notary to take?
- Notarize the signature but refuse to accept a fee to avoid a conflict.
- Proceed with the notarization since the notary is not a direct party on the deed.
- Refuse to notarize the document due to a conflict of interest. (Correct answer)
- Ask the spouse to sign the document in front of another witness before notarizing.
Correct answer: Refuse to notarize the document due to a conflict of interest.
Iowa Code §9B.4(2) prohibits a notarial officer from performing a notarial act with respect to a record to which the officer's spouse is a party or has a direct beneficial interest. Such a notarization would be a conflict of interest and is voidable.
Question 2: A signer brings a document to an Iowa notary and asks, "Which type of notarization do I need for this power of attorney? Should it be an acknowledgment or a jurat?" What is the notary's most appropriate and ethical response?
- Advise the signer that powers of attorney almost always require an acknowledgment.
- State that they cannot provide legal advice and that the signer must choose the notarial act. (Correct answer)
- Offer to attach both an acknowledgment and a jurat certificate to the document.
- Examine the document's text to determine the intent and select the correct certificate.
Correct answer: State that they cannot provide legal advice and that the signer must choose the notarial act.
A notary public who is not an attorney is prohibited from giving legal advice or otherwise engaging in the unauthorized practice of law. Choosing the type of notarial act for a signer constitutes legal advice. The notary may describe the different acts, but the signer must make the choice.
Question 3: An Iowa notary fails to properly verify a signer's identity on a vehicle title transfer. The signature turns out to be forged, resulting in a financial loss for the rightful owner. Under Iowa law, what is the potential liability for the notary?
- The notary is only liable for the fee they charged for the notarization.
- The notary is immune from civil liability as long as the misconduct was not intentional.
- The notary can be held liable for the damages proximately caused by the official misconduct. (Correct answer)
- The Secretary of State is liable for the damages, and the notary will only face a commission suspension.
Correct answer: The notary can be held liable for the damages proximately caused by the official misconduct.
According to Iowa Code §9B.23 and §9B.24, a notary is liable for damages to persons harmed by their official misconduct. Failing to properly identify a signer is a breach of duty and constitutes official misconduct, making the notary responsible for the financial losses that result.
Question 4: Which of the following actions constitutes the unauthorized practice of law for an Iowa notary public who is not an attorney?
- Charging a fee for traveling to a signer's location.
- Informing a signer of the maximum fee allowed by state law.
- Notarizing a document written in a language the notary does not understand.
- Independently selecting the correct notarial certificate for the signer's document. (Correct answer)
Correct answer: Independently selecting the correct notarial certificate for the signer's document.
A notary public is strictly forbidden from practicing law, which includes selecting a notarial certificate on behalf of a signer. Doing so is considered giving legal advice, as the type of certificate has legal implications. The signer or the entity that created the document must make this choice.
Question 5: An Iowa notary works for a company and is asked to perform notarial services for the company's clients. The company wants to require that individuals have an active account with the business before they can receive a notarization. According to Iowa law, this practice is:
- Permitted, as the employer can set conditions for services provided on their premises.
- Permitted, but only if the notary does not charge a fee for the service.
- Prohibited, as a notary cannot require a person to be a client of their employer. (Correct answer)
- Prohibited, unless a sign is clearly posted stating the company's policy.
Correct answer: Prohibited, as a notary cannot require a person to be a client of their employer.
Iowa Code §9B.8(3) explicitly states that a notarial officer's employer shall not condition the performing of a notarial service upon the requirement that the person served be a customer or client of the establishment. A notary serves the public and cannot be forced to limit services in this manner.
Question 6: A core ethical principle for an Iowa notary public is to act as an impartial witness. Which of the following best demonstrates this principle?
- Refusing to notarize a document for a known political opponent.
- Charging a lower fee for friends and family members.
- Performing a notarization for a person despite a personal disagreement, provided all legal requirements are met. (Correct answer)
- Offering an opinion on the fairness of the contract being signed.
Correct answer: Performing a notarization for a person despite a personal disagreement, provided all legal requirements are met.
Impartiality requires the notary to be a neutral third party and not allow personal feelings, biases, or relationships to influence their official duties. As long as a notarial act is lawful and the signer meets all requirements, the notary should perform the act without regard to their personal opinion of the signer.
IA Notary - Iowa Notary Notary Liability and Ethics Questions and Answers
An Iowa notary is asked to notarize a property deed for a transaction in which the notary's spouse is the seller.
The notary is not a party to the transaction and will not receive any direct financial benefit other than what is shared in their marital assets.
What is the correct action for the notary to take?
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