Intro
Notarization of documents verifies authenticity and confirms the signer’s identity, making it vital for legal and financial transactions. Besides in-person notarization, online notaries are increasingly popular thanks to flexibility. However, both methods might come with many mistakes, severely undermining a document’s legal standing and causing rejection.
This blog will explore common notarization mistakes, potential consequences, and effective prevention practices so that everyone can better prepare for their notarization.
Let’s get in right now!
4 Common Mistakes in Notarization of Documents
Notary errors can occur at different notarization stages. Without proper legal assistance, these mistakes often go unnoticed, potentially compromising the document’s validity. Let’s watch out for the following notarization mistakes as the first step toward prevention.
- Missing or incorrect notary seal
The notary seal/stamp and signature are the official marks of the notarization. There are two standard types of seals: physical for in-person notarization and digital for online notary services. If the seal is not applied correctly for the information: the notary’s name, commission expiration date, and jurisdiction of commission, the notarization is not valid. This seemingly small oversight leads to the document being rejected by relevant parties.
- Improper identity verification
A notary’s primary duty is to confirm the signer’s identity. If a notary fails to use acceptable identification methods (such as a valid, government-issued photo ID) or doesn’t compare the signer’s appearance with the ID, the notarization can be challenged. In terms of online notarization, cutting-edge identity verification technology like credential analysis and knowledge-based authentication is essential to prevent this error.
- Incomplete or incorrect notarial wording
Each type of notarial act (e.g., acknowledgment, jurat, or certified copy) in each region and country requires specific legal wording, known as the notarial certificate. Therefore, using the wrong wording or omitting required phrases can render the notarization null. For instance, using acknowledgment wording when a jurat is necessary is a critical error.
- Signer name mismatch
Despite the signer’s name mentioned in the seal error, we need to clarify it specifically. The name on the document needs to match the name on the signer’s identification. Discrepancies, such as nicknames or initials, can cause issues. While minor variations are sometimes acceptable with appropriate notarial notation, significant mismatches raise red flags regarding the signer’s identity and could invalidate your notarized documents.
Legal and Financial Consequences of Incorrect Notarization
Apparently, mistakes always make us suffer from consequences, and notarization is no exception. They can be minor aspects like delays and added costs, or serious setbacks.
- Rejected documents in court or government
Perhaps the most immediate consequence of incorrect notarization is the rejection of the document by authorized departments or institutions. Documents essential for legal proceedings, real estate transactions, or business formation are deemed inadmissible.
When you notarize documents online, you should be mindful of custom notarization laws compared to in-person notarization. These can include KYCs, GDPR, eIDAS for the EU, RON laws (KBA and U.S. eSign Act) for the U.S., and especially cybersecurity standards. Without strict compliance, all of your documents are at high risk of not being authorized.
- Contract disputes
Notarized contracts serve as a protection layer by verifying the identities of the parties involved. If a notarization is faulty, the opposing party may argue the contract is invalid, leading to costly disputes, litigation, and even potentially the voiding of the agreement.
- Lawsuits or fines
Notaries themselves are liable for their errors. An improperly notarized document can lead to lawsuits against the notary and, in some cases, the entity that facilitated the transaction. Individuals or businesses that relied on the documents might also confront fines or legal action if they submitted a flawed document to a governing body or court.
- Business deal delays or cancellations
In commercial settings, incorrect notarization can stall time-sensitive transactions, impact funding rounds, or even lead to the loss of a deal, potentially costing thousands or more.
4 Best Practices to Prevent Notary Mistakes
#1. Choose a reliable notary service
The foundation of successful notarization is choosing a competent and reputable notary. Whether you opt for an in-person or online notary, it’s essential to ensure the provider is licensed, bonded, and experienced. While physical services require coordination based on location availability, online notarization allows for notarizing from virtually anywhere. That’s why many individuals and businesses start to turn to the latter notarization option.
Leading platforms like Legitify, DocuSign, and Notarize have built strong reputations for offering secure, quick, efficient, and legally compliant online notary services. In particular:
- Legitify
It is known as one of the most trustworthy European-based online notary platforms. Legitify specializes in RON for various documents, offers affordable, transparent pricing plans, and ensures quick, legal cross-border transactions. Its site is verified with SOC 2 Type 1 Certification, demonstrating its strong commitment to safeguarding user data.
- DocuSign
While DocuSign is valid and legally binding in most countries, it was not initially built for online notarization but for a robust eSignature infrastructure. Therefore, DocuSign is not recommended for processing complex documents and seems limited to specific sectors.
- Notarize
Tailored for the U.S. market, Notarize is a fully digital platform that supports notarizations accepted across all 50 states. It’s built specifically for online notarization, offering a seamless, real-time video interface and full compliance with the US RON regulations.
#2. Use a notary checklist
Standardizing the notarization process through a checklist can help minimize oversights.
- Document(s) to be notarized are complete (no blank sections)
- Valid, government-issued ID is available and up to date
- Signer is present and aware (for video verification)
- Time and date are scheduled (if required)
- Internet and device setup are ready (for online notary)
- Any required witnesses are available (if applicable)
- Notary platform or individual is licensed and verified
#3. Ask for a record of every notarization
Maintaining a journal or record of every notarization is a best practice for notaries and a safeguard for signers if the validity of the notarization is ever questioned. They should include the date, type of notarization, signer’s information, and method of identification. However, you need to get acceptance from your notary service before making a record.
#4. Standardize and automate document workflow (for businesses)
These days, leveraging legal technology solutions for document notarization is essential. By utilizing document automation tools, companies can ensure that templates are pre-filled correctly and that notarization requests are routed through verified channels. This reduces human error from manual tasks and enhances legal compliance effectively.
Conclusion
Many individuals and businesses ignore a minor slip in document notarization and suffer from far-reaching repercussions, whether they work with an in-person or online notary. However, by strictly following the legal notarization-related regulations and standardized checklists, you can minimize the risk of errors and keep your documents legally binding. Don’t forget to visit our latest news for updated insights on tech, fintech, and blockchain.
