NC Notary Liability and Disciplinary Actions 2 — Questions and Answers
Question 1: Under NCGS Chapter 10B, which of the following acts by a NC notary is a Class I felony?
- Charging $11 instead of the $10 maximum fee
- Performing a notarization while the commission has expired
- Knowingly performing a notarization with a false statement in the certificate (Correct answer)
- Failing to update the NC SOS of a change of address within 30 days
Correct answer: Knowingly performing a notarization with a false statement in the certificate
Under NCGS §10B-60(i), knowingly making a false statement in a notarial certificate is a Class I felony in North Carolina. This is one of the most serious violations in Chapter 10B.
NCGS §10B-60(i) provides that a notary who knowingly makes a false or misleading statement in a notarial certificate commits a Class I felony. A Class I felony in NC is punishable by imprisonment. This reflects the serious consequences of notarial fraud — notarial certificates are relied upon by courts, government agencies, and businesses as authentic evidence of identity and willingness to sign. Lesser violations (like minor fee overcharges or administrative failures) are civil or misdemeanor-level offenses.
Question 2: A NC notary is sued by a signer who claims the notary failed to properly verify their identity and they suffered financial loss as a result. The notary may be found liable if:
- The notary charged more than $5 for the notarization
- The notary failed to exercise reasonable care in the identity verification process (Correct answer)
- The signer can prove the document was fraudulent
- The notary's commission had been renewed less than 6 months earlier
Correct answer: The notary failed to exercise reasonable care in the identity verification process
Under NC law, a notary can be found liable for negligence if they failed to exercise reasonable care in verifying the signer's identity and this failure caused the plaintiff's loss. The standard is reasonable care, not perfection.
A NC notary owes a duty of reasonable care in performing notarial acts. Under NCGS §10B-99, liability flows from negligence — the failure to exercise the care a reasonably prudent notary would use under the same circumstances. In an identity verification context, this means carefully examining the signer's ID, checking for signs of tampering, matching the physical description, and using common sense. A notary who barely glances at an ID before notarizing could be found negligent if the ID was fake and resulted in harm.
Question 3: Under NCGS Chapter 10B, the NC SOS may take which disciplinary action against a notary who commits a violation?
- Criminal prosecution only — the SOS cannot impose administrative penalties
- Suspension, revocation of commission, or reprimand (Correct answer)
- Imposing fines up to $100,000
- Permanent bar from any state employment
Correct answer: Suspension, revocation of commission, or reprimand
Under NCGS §10B-60, the NC Secretary of State may administratively suspend a notary's commission, revoke the commission, or issue a written reprimand. These are the administrative remedies available to the SOS.
NCGS §10B-60 gives the NC Secretary of State authority to: (1) revoke a notary commission, (2) suspend a commission for a period of time, or (3) issue a written reprimand. These are civil/administrative remedies. Criminal prosecutions for notary crimes are handled by the NC Attorney General or district attorneys. The SOS does not have authority to impose large monetary fines — any civil damages are pursued through the courts, not SOS administrative proceedings.
Question 4: A NC notary commits notarial misconduct and their commission is revoked. The notary appeals the decision. Under NCGS Chapter 10B, appeals of the NC SOS's commission revocation decision are heard by:
- The NC Supreme Court directly
- The NC Superior Court through the Administrative Procedures Act (Correct answer)
- A special notary review board appointed by the Governor
- The county register of deeds where the notary filed their bond
Correct answer: The NC Superior Court through the Administrative Procedures Act
Under NCGS §10B-60, a notary whose commission is revoked may appeal the decision through the NC Office of Administrative Hearings and ultimately the NC Superior Court under the Administrative Procedures Act (APA).
The NC Administrative Procedures Act (NCGS Chapter 150B) governs appeals of administrative agency decisions, including notary commission actions by the NC SOS. A notary who disagrees with a suspension or revocation decision may request a contested case hearing before an Administrative Law Judge in the NC Office of Administrative Hearings. If unsatisfied with that result, they may appeal to Superior Court. The NC Supreme Court would only be involved in exceptional circumstances after lower court review.
Question 5: Under NC law, a notary who performs a notarial act for a person they know to be under duress may face which consequences?
- Only a warning letter from the NC SOS for a first offense
- Commission revocation and potential criminal liability (Correct answer)
- A mandatory training requirement to be completed within 30 days
- Only civil liability to the victim
Correct answer: Commission revocation and potential criminal liability
Performing a notarization for a person known to be under duress is a serious violation. Under NCGS §10B-60, the NC SOS may revoke the commission. Additionally, depending on circumstances, the notary could face criminal liability for facilitating fraud or coercion.
NCGS §10B-60 lists performing a notarial act when the principal is under duress as grounds for commission revocation. This is not a mere technical violation — it strikes at the core of the notary's role as an impartial witness ensuring voluntary signatures. Beyond commission revocation, if the coercion was part of a larger fraud scheme, the notary could face criminal charges as a co-conspirator. The notary could also face civil liability to the person who was coerced. A warning letter alone would be wholly inadequate for such a serious violation.
Question 6: A NC notary inadvertently notarizes a document without filling in the date on the notarial certificate. Under Chapter 10B, this error:
- Automatically voids the notarization
- Is a technical defect that may not void the notarization if substantial compliance is met (Correct answer)
- Requires the notary to be reported to the NC SOS
- Can be corrected by the notary adding the date at a later time without the signer present
Correct answer: Is a technical defect that may not void the notarization if substantial compliance is met
Under NCGS §10B-68, a notarization that substantially complies with the requirements of Chapter 10B is not void solely due to a technical irregularity. A missing date may be a curable defect if other certificate elements make clear when the act occurred.
NCGS §10B-68 provides that substantial compliance with Chapter 10B saves a notarization from being declared void solely due to a technical defect. A missing date, while improper, may not void the notarization if the date can be determined from other evidence (e.g., document date, recording date). However, the notary cannot unilaterally add a date after the fact without the signer present — that could constitute falsification. Best practice is to complete all required fields at the time of notarization to avoid any question about validity.
NC Notary Liability and Disciplinary Actions 2
Under NCGS Chapter 10B, which of the following acts by a NC notary is a Class I felony?