Notarization Defined

In the legal context, notarization refers to the signing of public documents by a notary public, who effectively verifies the contents of the document and the identity of the parties involved. A notary public’s primary responsibilities include: The core functions of notarization are to deter fraud, wrongful claims, and improper or corrupt practices by public officials. Notaries discourage criminal activities by requiring a person who wants a document notarized to show valid identification and appear in person. A notary public also has the authority to administer oaths and affirmations and certify that the signatures on a document are authentic . Along with a raised seal and an inked signature, the notary public will also apply the certificate date to the document. Not every document requires notarization – only qualifying ones such as a Power of Attorney or Loan Agreement, for example. A notary public is a neutral and impartial figure. He/she is required to check for the authenticity of a document and all parties signing it to prevent any fraudulent activity. The principal role of a notary public is to make sure that all parties involved are willing to carry out their role. He/she must confirm the identity, physical appearance, and understanding of the document by all parties and how the specific rules of the document apply to each party.

Real Property Documents

Real Estate Documents. Notation of home purchases and sales, lease agreements, mortgages, transfer of property rights and claims – all of these real estate documents require notarization under Illinois law. These individuals that dedicate their professional lives to closing real estate transactions are meticulous in requiring an acknowledgment by the parties that are signing the real estate documents. The process is pretty simple, and the benefits are ten-fold. The witness is completed at the time of signing the real estate document and the real estate documents are then recorded with the appropriate government agency as a matter of public record. In most instances, real estate closings occur at real estate like Title Insurance Companies or settlement agencies as real estate professionals have the resources to monitor that proper notarization occurs for all real estate transactions. The recording and filing of these real estate documents with the witness, protects the parties from fraud and fortifies the real estate closing and purchase.

Financial Statements

In the financial realm, there are a plethora of documents that often require notarization. Apostilled loan agreements, promissory notes, closing documents, mortgage documents, deeds, easements, releases, liens, and other financial instruments often require notarization, as do powers of attorney. This is because these documents can alter the terms of an agreement or the bigger issue of ownership of an asset or right. Powers of attorney, which are used for many different purposes such as businesses, health care, and real estate transactions, allow a third party to act on behalf of another. In these contracts and instruments, the ability of the notary to witness the signatures, certify the effectiveness of the agreement, and provide witnesses allows the third party to rely on the sworn statements of the grantor of the document. This is extremely important should any disputes arise pertaining to the authenticity of the document, as well as in instances when the validity of the contract is called into question.

Legal Papers

In addition to the aforementioned documents, certain legal documents also require notarization. Affidavits require the execution by a notary public. An affidavit generally contains facts and statements that someone, with knowledge of the facts, states are true and accurate. Real estate purchases often require that certain affidavits be recorded, such as an affidavit of a marital status and an affidavit of no bankruptcy. Banks cannot lend money or give mortgage financing for real estate purchases if the marriage status is unknown and, if married, whether it is documented that the non-married spouse has signed the deed of trust to evidence they do not have an ownership in the real property. A bankruptcy affidavit that states that the property that is being purchased was not exempt from the bankruptcy process and the bank is able to determine that a foreclosure sale should comply with the purchase contract.
Trust documents and wills cannot be recorded and become effective until the person who created the documents passes away. Sometimes a will or trust requires that documents be executed by the trustee or personal representative in order for them to be recognized as valid for recordation. For those documents to be considered valid, they must be notarized.

Business and Corporation Papers

Businesses and corporations have a more formal structure than your average individual. However, as with private parties, notarization of documents such as business formation documents, minutes of meetings, and agreements between partners may be required.
A business must submit "articles of incorporation" to the Secretary of State’s office. This document states the volunteers of the corporation. Often, this document, or a similar document, must also be submitted to the Internal Revenue Service in order for the corporation to obtain an Employer Identification Number, which is like its Social Security number.
"Articles of Organization" is the terminology used for documents that proprietorships, LLCs, and limited partnerships must file with state authorities for business formalities and tax registrations.
The Secretary of State’s website has information on the specific documents that individual businesses are required to submit. Each corporation’s page may have slightly different requirements.
Agreements between business partners must also be notarized, for the purpose of avoiding fraud and accidental destruction of original documents . If the assets of a corporation are subsequently mortgaged for collateral on a loan, deeds of trust and other real estate agreements must be signed by officers of the company and notarized.
Although notarization is often not legally mandated, it can carry weight in business transactions, and damaged or missing records can result in legal forfeiture of your personal liability shield. This essentially calls into question the benefits that come along with forming or incorporating a LLC or C or S corporation in the first place.
For example, many hand-written agreements between corporations are illegal unless notarized by an attorney. Several minutes books for meetings are also required by law for LLCs and corporations, and these must be maintained and notarized.
Similarly to documents intended for personal use, notarized documents can lend an air of professionalism to a business that can enhance consumer confidence in purchasing the product or service.
When establishing a business, it is essential to be aware of the documentation required by both the state and federal government, and complying with the various requirements that have been set.

International Papers

Beyond domestic use, notarization plays a critical role in providing certainty about execution for international agreements and treaties; adoption documents; education certificates, diplomas, or transcripts for studying abroad; foreign title documents and registration; and other immigration, expatriation, or travel-related documents. In addition to a notary seal, many countries will require an apostille, which authentically confirms the notary’s signature and seal on a document. Once affixed to a document, the apostille will allow a notary-authenticated document to be legally used internationally in dozens of countries.

Not Much Is Known about Notarization

There are numerous myths surrounding notarization of legal documents. One of the most frequent misconceptions is that everyone who calls themselves a Notary is legally authorized to conduct all facets of a real estate closing (and sometimes, even to draft the legal instruments). While many states do permit Notaries with specified credentials to execute real estate closings, a Notary is not a lawyer and cannot draft or provide legal advice regarding the required documentation; nor can the Notary modify the terms of the contract or add or delete information from any of the documents that he or she notarizes. The principal (or signor) must understand and agree to the facts, terms, and circumstances as expressed in the documents before signing them.
Another common misperception is that notarization of any document is sufficient to create a legally enforceable contract or instrument. Notwithstanding notarization, many other requirements must in fact be followed for legal effectiveness and, for recording purposes, administrative matters must be attended to. In addition to notarization, the person signing a deed usually must have an intention to convey the property and act voluntarily, and various execution requirements must be followed depending on state law and the type of document. Further, because deeds can affect title to real property, recording the deed according to customary practices is necessary for it to have priority over claims by subsequent bona fide purchasers for value and without notice of the deed. Also, transfer tax declarations or other required tax forms normally must be filed and stamped by the taxing authority before a deed can be recorded.

Where to Have a Doc Notarized

Fortunately, there are many options for individuals looking to get documents notarized. For starters, most bank branches have a notary public on staff to serve their clients, and some even offer this service to customers who do not have an account with them. Law offices in your area are also likely to have notaries on staff. Check websites or call ahead to ask about this service. Additionally , for a small fee, mobile notaries will come to you, or work out of locations such as grocery stores, office supply stores, churches or community centers. As with all services offered by individual businesses, confirm the availability of the service before you arrive.