Updated 1-30-23. Making a mistake during a notarization can have serious financial and legal consequences for California Notaries — and deliberately breaking the law leads to even more severe penalties. This guide will help familiarize Notaries with the Golden State’s Notary laws and penalties for misconduct.
Penalties for Notary misconduct in California
If a Notary commits misconduct, penalties under California law fall into four main categories:
Disciplinary action by the Secretary of State: The Secretary of State can refuse to appoint any person as a Notary, or suspend or revoke a Notary’s commission for many violations listed under Government Code 8214.1.
Civil Penalties: In addition to disciplinary action taken against a Notary’s commission, Government Code 8214.15 authorizes the Secretary of State to fine a California Notary up to $750 for negligent misconduct. If the Notary willfully committed misconduct, the maximum fine increases to $1,500 (see “Negligence Vs. Willful Misconduct” below).
Criminal penalties: If the Notary’s misconduct constitutes a misdemeanor or felony under the law, the Notary may be sentenced to jail time or other criminal penalties in addition to any disciplinary action and civil penalties.
Lawsuits: If the Notary’s misconduct harmed a private individual, the Notary may be sued in a civil lawsuit.
It’s important to understand that misconduct can result in a Notary facing multiple penalties. For example, if a Notary was found negligent for failing to properly complete and seal an acknowledgment on a real estate document, the Secretary of State could impose a civil penalty, and suspend or revoke the Notary’s commission as well if deemed appropriate. On top of that, if the Notary’s error resulted in a financial loss for the signer, the signer could also sue the Notary to recover any damages resulting from the faulty notarization.
Negligence vs. willful misconduct
Intentionally breaking state Notary laws (“willful misconduct”) carries significantly harsher punishments than if the Notary’s violation was unintentional (“negligence”).
For example, a negligent violation of performing a notarial act when the Notary has a direct financial or beneficial interest in the transaction (GC 8224) would be a $750 fine. A willful violation of that same section would be a $1,500 fine. So, if the Notary knew they were named in the document and knew it was a disqualification to notarize in that circumstance, they'd be potentially liable for a $1,500 civil penalty.
Also, while an errors and omissions insurance policy will cover you against claims of negligence, an E&O policy will not cover willful acts or fraud.
Examples of misconduct
One of the biggest issues facing Notaries — especially inexperienced ones — is that many don’t realize until it’s too late that a seemingly harmless action violates state Notary laws and can result in serious consequences. Here are some examples:
Failure to secure your journal and seal. California Notaries are required to store their seals and journals in a locked, secure area when not in use. Carelessly leaving a seal out unattended could result in it being stolen or used to commit fraud, while leaving a journal unsecured could give someone access to sensitive private information. Failing to keep a seal under your control is a misdemeanor offense (Government Code 8228.1[a]).
Ignoring identification requirements. Sometimes a family member, friend or coworker may bring you a document and ask, “I don’t have my ID, can we just proceed without it?” The answer is: Don’t do it. All notarizations require following California’s identification rules. Willfully failing to discharge faithfully any of the duties required of a Notary is punishable by up to a $1,500 civil penalty (Government Code 8214.15[a]). Depending on the type of identification violation, the civil penalty could skyrocket to $10,000 (Civil Code 1185). If the Notary willfully failed to identify the individual for an acknowledgment and then willfully signed and sealed an acknowledgment certificate stating the Notary identified the individual when he or she did not, that could be an additional civil penalty up to $10,000 (Civil Code 1189[a][4]). And, as we have seen, making that false certification in an acknowledgment could be forgery as well.
Failing to obtain a required thumbprint for your journal entry. The thumbprint is an important fraud deterrent, and California Notaries are required to obtain a signer’s thumbprint in their journal entry when notarizing a deed, quitclaim deed, deed of trust, power of attorney or any document affecting real property. Failing to obtain a required thumbprint for your journal entry can result in a civil penalty of up to $2,500 (GC 8214.23[a]).
Unauthorized practice of law. Notaries who are not attorneys are prohibited by law from offering legal advice or answering questions on legal matters. What many inexperienced Notaries don’t realize is that seemingly innocuous actions like choosing which notarization to perform on a signer’s behalf or telling a signer what document they need for their needs are violations of state law. Giving unauthorized advice can result in loss of a Notary’s commission as well as additional penalties (Government Code 8214.1[g] and Business and Professions Code 6126).
5 steps to avoid Notary misconduct in California
1. Never skip or ignore required laws, such as personal appearance by a signer, or presenting proof of identity when notarizing.
2. Be sure that any certificate wording is complete and all information is correct. Never agree to requests to backdate a certificate or enter false or incorrect information.
3. Be sure that you record all required information in your journal entry for each notarization.
4. Always secure your seal and journal in a locked, secure area when not in use.
5. Never provide unauthorized advice on legal matters or choose a notarial act for a signer.
David Thun is the Assistant Managing Editor at the National Notary Association.
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