Prohibited Acts & UPL Flashcards

A Pennsylvania notary is an employee at a large real estate firm and is paid an hourly wage. The firm offers a quarterly bonus to all administrative staff, including the notary, based on the total number of property closings the firm completes. The notary's duties include notarizing deeds and mortgage documents for these closings. Under PA law, is this bonus structure a prohibited conflict of interest for the notary?

Answer: No, because the bonus is not contingent upon the completion of any specific notarial act and is part of a firm-wide incentive.

Pennsylvania law states that a notary may not have a direct or pecuniary interest in a transaction. However, it clarifies that receiving a bonus is not considered a direct or pecuniary interest, provided the bonus is not related to or contingent upon the completion of a specific notarial act. Since the bonus is for all administrative staff and based on the firm's overall performance (total closings), it does not create a prohibited conflict of interest.

A notary advertises their services on a small, business card-sized magnet. Due to the limited space, they omit the mandatory statement, 'I am not an attorney licensed to practice law...' They believe this is acceptable because the magnet is too small. Which of the following is true?

Answer: The notary must prominently display the required statement at the place of business where the notarial act is performed.

RULONA provides an exception for advertisements where the full statement cannot be included due to size. In such cases, the law requires that the statement must be 'displayed prominently or provided at the place of performance of the notary act before the act is performed.' Simply omitting it is a violation.

A client presents a Pennsylvania notary with a complex document written in a foreign language they do not understand and asks for an acknowledgment. The client seems to understand the document and has presented valid identification. What is the most appropriate action for the notary to take?

Answer: Refuse the notarization because the notary cannot understand the document's contents.

While a notary is not responsible for the content of a document, they have the authority to refuse a notarization if they are not satisfied or comfortable with any aspect of the transaction. Notarizing a document whose nature and purpose are completely unknown to the notary, especially in a foreign language, introduces risk and uncertainty. The safest and most professional course of action is to refuse the notarization to avoid potential involvement in a fraudulent or illegal act.

A notary works at a bank. A customer needs a signature guarantee for a stock transfer, a service the bank provides through its brokerage department. The customer, confused, asks the notary to perform the signature guarantee. The notary knows they cannot perform this act. What is the most accurate explanation the notary can give the customer without engaging in UPL?

Answer: "A notary public verifies identity and the voluntary signing of a document, whereas a signature guarantee is a financial certification that warrants the signature's authenticity and the signer's legal authority, which I am not authorized to provide."

This answer correctly and factually differentiates between a notarization and a signature guarantee without providing legal advice. It explains the notary's function and the nature of the requested service, clarifying why they are not authorized to perform it. The other options are incorrect: they misstate the law, incorrectly define a signature guarantee, or offer to perform an inappropriate act.

Which of the following scenarios constitutes a prohibited act for a Pennsylvania notary?

Answer: Backdating a notarial certificate to the previous day because the signer was physically present and signed the document then, but the notary forgot to complete the journal entry and stamping.

Altering, post-dating, or backdating a notarial act is explicitly prohibited and is a serious offense. The date on the notarial certificate must be the date the notary actually performed the act. The other scenarios are permissible: notarizing for a coworker on a personal matter is not a conflict of interest, charging an agreed-upon travel fee is allowed, and refusing service due to suspected duress is a notary's right and responsibility.

A notary is presented with a power of attorney document to be notarized. The notary notices their own spouse is named as one of several co-agents in the document. The notary and their spouse will not receive any direct financial benefit from the execution of this specific document. Can the notary proceed?

Answer: No, because a notary may not perform a notarial act with respect to a record in which the notary's spouse has a direct or pecuniary interest.

Pennsylvania law explicitly prohibits a notary from performing a notarial act on a record where the notary or their spouse has a direct or pecuniary interest. Being named as an agent in a power of attorney constitutes such an interest, regardless of whether immediate financial gain is apparent. The potential to act and make decisions on behalf of the principal is a significant interest.