Key Takeaways
- Commission revocation can occur for serious violations
- Civil liability may require the notary to pay damages
- Criminal penalties can include fines and imprisonment
- The surety bond provides public protection up to \$5,000
- Notaries can be sued personally for negligent acts
Last updated: January 2026
Penalties and Liability
Arizona notaries face serious consequences for misconduct. Understanding potential penalties helps you appreciate the importance of following proper procedures.
Types of Penalties
| Type | Authority | Examples |
|---|---|---|
| Administrative | Secretary of State | Commission revocation, suspension |
| Civil | Courts | Lawsuits, monetary damages |
| Criminal | Prosecutors | Fines, imprisonment |
Administrative Penalties
The Secretary of State can:
| Action | Cause |
|---|---|
| Revoke commission | Serious violations |
| Suspend commission | Investigation pending |
| Deny renewal | Pattern of violations |
| Issue warning | Minor infractions |
Grounds for Revocation
| Violation | Result |
|---|---|
| Notarizing without signer present | Revocation |
| Fraud or deceit | Revocation |
| Failing to maintain records | Revocation |
| Criminal conviction | Revocation |
| Violating notary laws | Revocation or suspension |
Civil Liability
You can be sued by anyone harmed by your notarial acts:
| Scenario | Potential Liability |
|---|---|
| Notarizing forged signature | Damages to fraud victim |
| Not verifying identity properly | Damages from identity theft |
| Notarizing incomplete document | Contract damages |
| Negligent notarization | Professional liability |
The Surety Bond
Your $5,000 surety bond provides:
| Protection | Details |
|---|---|
| For whom | The PUBLIC (not you) |
| Amount | Up to $5,000 |
| Coverage | Damages from notary misconduct |
| Your obligation | Reimburse surety if claim paid |
Important: If a claim is paid on your bond, the surety company can require you to repay them.
Criminal Penalties
Serious violations can result in criminal charges:
| Offense | Classification | Potential Penalty |
|---|---|---|
| Notarizing with knowledge of fraud | Felony | Prison, fines |
| Forgery (notarial certificate) | Felony | Prison, fines |
| Perjury (false journal entries) | Felony | Prison, fines |
| Unauthorized practice of law | Misdemeanor | Fines, probation |
Specific Arizona Penalties
| Violation | Penalty |
|---|---|
| Failure to report lost/stolen seal within 10 days | $1,000 fine |
| Failure to change address within 30 days | $25 fee |
| Failure to surrender records within 3 months of expiration | $50-500 fine |
Protecting Yourself from Liability
| Best Practice | Why It Helps |
|---|---|
| Always verify identity | Prevents fraud claims |
| Keep detailed journal | Documents proper procedure |
| Never skip steps | Shows due diligence |
| Refuse questionable notarizations | Avoids liability |
| Consider E&O insurance | Additional protection beyond bond |
Errors & Omissions (E&O) Insurance
While not required in Arizona, E&O insurance provides:
| Benefit | Details |
|---|---|
| Coverage | Negligent acts, errors |
| Protection | For YOU (unlike bond) |
| Legal defense | Covers attorney fees |
| Typical cost | $25-75 per year |
On the Exam
Liability questions focus on:
- Bond protection: Protects public, not notary
- Revocation causes: Fraud, not verifying identity
- Criminal exposure: Knowingly notarizing fraud
- Civil suits: Anyone harmed can sue
- Specific fines: Know the amounts ($1,000 for seal, etc.)
Test Your Knowledge
Who does the Arizona notary surety bond protect?
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Test Your Knowledge
What is the fine for failing to report a lost or stolen notary seal within 10 days?
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