Does a New York Notary have Liability?

Yes. To answer the question, “Does a New York notary have liability?”  A notary risks liability for misconduct. If a notary exhibits faulty performance, he or she risks liability. Their primary responsibility is to verify the identity of signatories, witness the signing of documents, and administer oaths. Despite their seemingly straightforward duties, notaries can face significant liability if they fail to perform their tasks correctly. Understanding notary liability is essential for notaries to mitigate risks and perform their duties with due diligence

Nature of Notary Liability

Notary liability refers to the legal responsibility that a notary public holds for errors, omissions, or misconduct in the performance of their duties. When a notary makes a mistake or engages in wrongful conduct, they can be held accountable through civil lawsuits or other legal actions. The nature of this liability can vary depending on the jurisdiction and specific circumstances of the case.

Let’s say you notarized a document without the signer present. Or, you fail to verify the identity of the signer. You could also make yourself liable because you failed to execute proper notarial procedures. Another area that puts you in the cross-hairs is: You know that a document contains a false statement. Yet, you continue to notarize the instrument anyway. Understand that official misconduct carriers both civil and criminal liability. You may want to read our article on Notary Discipline.

So what if a notary makes a simple mistake? You may be liable for any damages your mistake causes. If you notarize a high volume of documents, it is wise to get Errors and Omissions Insurance. We will address this insurance in our next blog.

Common Grounds for Liability

Several factors can lead to notary liability:

• Errors and Omissions: A notary can be held liable if they make errors or omissions in notarizing documents. For example, if a notary fails to correctly verify the identity of a signatory or makes an error in the notarization process, it could lead to legal complications and potential financial loss for the parties involved.
• Failure to Properly Authenticate Documents: Notaries are responsible for ensuring that documents are properly executed and meet legal requirements. If a notary fails to authenticate a document correctly, it can lead to disputes or legal challenges.
• Improper Administration of Oaths: When administering oaths, notaries must follow strict procedures. Any deviation from these procedures can result in the oath being considered invalid, which can impact legal proceedings or document validity.
• Fraud and Misconduct: Notaries must act with integrity and avoid any form of fraud or misconduct. Engaging in fraudulent activities, such as falsifying documents or knowingly allowing a person to sign a document under false pretenses, can result in serious legal consequences.

In addition, your employer may be held liable for any notarial acts you perform. One possible problem arises when your employer wants to take advantage of your notary status. He or she asks you to authenticate a signature outside the parameters of the law. It may seem a simple favor at the time, but it can come back to haunt you. It is extremely important that both you and your employer understand that improper notarization is not allowed. The best advice is always follow the law. All of these situations, and more, are detailed in our New York notary Test Preparation Course.

Consequences of Notary Liability

The consequences of notary liability can be severe, including:

• Legal Action: Affected parties may file lawsuits against notaries for damages resulting from errors or misconduct. Legal action can result in significant financial liabilities, including compensatory damages and legal fees.
• Administrative Penalties: Notaries may face disciplinary action from regulatory bodies or licensing agencies. Penalties can include suspension or revocation of the notary commission, fines, and other administrative sanctions.
• Loss of Reputation: A notary found liable for errors or misconduct may suffer damage to their professional reputation. This can impact their ability to secure future work or maintain a positive standing in their profession.

Again, a New York Notary does have liability. But if you execute the responsibilities of your office with diligence, it is unlikely that you will commit misconduct. You can obtain a copy of the New York Notary license Law from the New York State Department of State.

So, simply put, the best way to avoid exposure to liability is to obey the law.