Notary Liability and Legal Consequences

Notaries who fail to perform their duties properly face serious legal consequences. Understanding the types of liability helps you appreciate the importance of following proper procedures every time.

Types of Liability

1. Civil Liability

A notary can be sued by individuals who suffer financial harm due to the notary's negligence or misconduct.

Common Civil Claims:

• Negligent identification — Failing to properly verify a signer's identity, allowing an impostor to notarize a document
• Negligent certificate completion — Errors in the notarial certificate that render a document unrecordable or unenforceable
• Failure to administer oath — For jurats, skipping the oath can invalidate sworn statements
• Breach of duty — Any failure to follow required notarial procedures

Damages: Civil liability can include:

• Compensatory damages — Payment for actual financial losses suffered
• Punitive damages — Additional payment as punishment for egregious misconduct (in some states)
• Attorney's fees — The victim's legal costs
• Court costs — Filing fees and other expenses

2. Criminal Liability

Certain notarial violations are crimes that can result in prosecution:

3. Administrative Liability

The commissioning authority (Secretary of State) can impose administrative sanctions:

• Commission revocation — Permanent loss of the notary commission
• Commission suspension — Temporary loss of authority to notarize
• Fines — Monetary penalties
• Mandatory retraining — Required to complete additional education
• Denial of renewal — Refusal to renew the commission
• Public censure — Official reprimand made public

The Chain of Consequences

A single negligent notarization can trigger multiple consequences simultaneously:

1. The injured party sues the notary (civil liability)
2. The surety bond pays the claim (but the notary must reimburse)
3. The state investigates and may revoke the commission (administrative)
4. If fraud is involved, criminal charges may be filed
5. The notary's professional reputation is damaged
6. Future employment as a notary may be impossible

Protecting Yourself

The best defense against liability is following proper procedures every time:

1. Always identify the signer using acceptable methods
2. Always administer the oath for jurats — never skip it
3. Always complete the certificate fully and accurately
4. Always record in your journal — detailed entries are your best defense
5. Always refuse when required — protecting yourself is more important than completing the notarization
6. Obtain E&O insurance — It provides a financial safety net for honest mistakes
7. Stay current on the law — Take continuing education, read updates, follow NNA resources

On the Exam

Liability questions test your understanding of consequences:

• Three types of liability: Civil, criminal, administrative
• Civil = lawsuits for financial harm caused by negligence
• Criminal = prosecution for fraud, forgery, perjury, UPL
• Administrative = commission revocation and other sanctions
• Surety bond compensates victims — but notary must reimburse
• Best protection: Follow proper procedures every time