Instant Notary Bonds for Notary Officials
Notarization is a crucial component of numerous legal procedures, such as home mortgage closings and automobile title transfers, while being critical for detecting fraud and mitigating exploitation. Every day, thousands of Americans count on a notary public to guarantee that their most vital legal papers are genuine and valid, making the notary public an underappreciated yet significant role.
If you want to transfer property (real estate, stocks, bonds) within the United States, they must be signed over in front of a Notary Public. If you are signing on behalf of an estate or are an executor on someone else’s behalf, this includes vital documents like wills and death certificates, it must occur under a notary’s facilitation.
Notary Bond Basics
- Required by notary publics to offer their services
- Ensures ethical and lawful behavior on behalf of notaries
- Is required by the state
What Is A Notary Bond?
A notary bond is a type of court surety bond required by the state for an individual to become a notary public.
The bond serves as a form of financial protection for the public, ensuring that the notary will perform their duties in accordance with state laws and regulations, and will compensate any person who suffers financial loss as a result of the notary’s misconduct or negligence. The notary typically purchases the bond from a surety bond company, and the cost is typically based on a percentage of the bond amount.
In today’s world, many governments require businesses to have a bond before they are allowed to open their doors to the public or begin offering their services to the public at large. As such, order to work as an active notary, you must purchase a bond that guarantees that you will properly carry out your duties as a notary public.
What Does A Notary Public Do?
A Notary Public is responsible for preventing fraud by verifying an individual’s identity that wishes to sign a formal document. The notarization demonstrates that the signer has willingly signed and understands precisely what they agree to.
Notaries ensure that the information on the document is correct, complete, and accurate. They witness all signatures placed on records, then secure a notarial certificate to confirm that everything is in order. These signatures must bear witness, meaning they should be placed on the document at roughly the same time. Finally, Notaries have a legal obligation to ensure that documents are stored safely and securely to prevent loss or damage.
Who Needs A Notary Bond?
Anyone who wishes to become a licensed notary public is required to purchase a bond. This requirement helps protect the public by assuring that the professional who performs notarial services can be trusted to act in an ethical manne
It also protects people for whom the notaries provide their services (such as real estate buyers and sellers) by guaranteeing that the professional will perform their duties correctly and in accordance with the law.
The bond also protects the state and the public by ensuring that the individual is financially able to fulfill their obligations as a commissioned notaries public.
What Is A Notary’s Role In Document Authentication?
The role of a notary public is to serve as an impartial witness while performing their duties. A Notary Public’s primary duty is authenticating documents by administering oaths and affirmations, taking acknowledgments, witnessing the signing of deeds, and inscribing certificates on documents such as affidavits, powers of attorney, and military discharges.
How Do Notary Bonds Work?
A notary bond works as a form of financial protection for the public. It is a contract between the notary, the surety bond company, and the state.
When a claim is made against the bond, the surety bond company will investigate the claim to determine if it is valid. If it is determined that the notary was at fault, the surety bond company will compensate the person who suffered the loss up to the full amount of the bond. The notary is then responsible for reimbursing the surety bond company for any money paid out on the bond.
In case of any violation of the state laws and regulations by the notary, the bond will be used to compensate the person who suffered the loss and the notary will be responsible for reimbursing the surety bond company for any money paid out on the bond.
It’s important to note that a Notary bond is not an insurance policy, and it does not protect the notary from any financial loss, it only protects the public from financial loss caused by the notary’s misconduct or negligence.
Three Parties To A Notary Bond
A notary bond is a contract between three parties: the notary, the surety bond company, and the state.
1. The Principal
The notary, or the principal, is the individual seeking to become a notary public and is required to purchase the bond.
2. The Obligee
The state is known s the obligee, and is the entity that mandates the notary to purchase the bond as a prerequisite to becoming a notary public. The obligee is responsible for enforcing the laws and regulations that the notary must abide by.
3. The Surety
The surety bond company is the provider of the bond, who guarantees the performance of the notary according to the state laws and regulations.
In this tri-party contract, the notary is obligated to perform their duties in accordance with state laws and regulations and to compensate any person who suffers financial loss as a result of the notary’s misconduct or negligence. The surety bond company is responsible for investigating any claims made against the bond and for compensating the person who suffered the loss up to the full amount of the bond. The state is responsible for overseeing the notary’s performance and enforcing any penalties for non-compliance with laws and regulations.
How To Become A Notary Public?
You should meet specific requirements before applying to become a notary public. The first requirement is the most obvious one, your age.
You must be at least 18 years of age to apply, so make sure you’re eligible.
You must have completed high school or college to obtain certification from your state Secretary of State office. This process occurs by filling out and submitting application forms and other required documentation such as proof of citizenship, identification documents, etc.
In addition to these requirements, states require notaries must also complete a Notary Public laws and procedures course before applying for their commission certificate. The course content typically includes information about state law regarding notarization, types of transactions that require an acknowledgment or jury, etc.
Once approved by the authorities, the individual becomes qualified under the law; they can purchase their surety bond through Simpli Surety or any surety agency working with bonding companies.
With Simpli Surety, if approved, you’ll have your notary surety bond arrive to your inbox within minutes of submitting your application. In many cases, this process can take days or weeks to have your notary bond issued. We are the #1 instant online surety bond provider on the web, exclusive dedicated to instant issue surety bonds.
Notary Bond Benefits
Notary bonds provide several benefits for the public, the notary, and the state. Some of the main benefits include:
- Protection for the public: Notary bonds serve as a form of financial protection for the public, ensuring that the notary will perform their duties in accordance with state laws and regulations and will compensate any person who suffers financial loss as a result of the notary’s misconduct or negligence.
- Professionalism and credibility: By obtaining a notary bond, notaries demonstrate their commitment to professionalism and credibility, which helps to build trust with the public and clients.
- State oversight: The bond requirement serves as a way for the state to oversee the notary’s performance and ensure compliance with laws and regulations.
- Legal recourse: Notary bonds provide a legal recourse for individuals who suffer financial loss due to the notary’s misconduct or negligence.
- Personal protection: Notary bonds also protect the notary from any personal loss or liability if the notary is falsely accused of misconduct or negligence.
- Cost-effective: Notary bonds are typically purchased by the notary from a surety bond company, and the cost is typically based on a percentage of the bond amount, making it an affordable option for notaries and their clients.
How Much Does A Notary Bond Cost?
The cost of a notary bond is based on the individual’s annual income as a Notary Public. The minimum amount required for an individual notary surety bond in most states is $15,000, and it usually costs around 0.35% to 0.75% of that figure or between $50 and $150 per year.
Notaries who work for companies with five commissioned officers must typically have a corporate surety bond claim at least six times the value of their annual salary but no more than $100,000 depending on state law requirements.
This means that this type of bond coverage will range from 0.02% to 0.06%. Suppose you are bonding yourself to get your commission as a notary. In that case, it is essential to factor in the bond premium cost when calculating your expected annual income.
Notary Bond FAQs
Can anyone issue a bond?
No, only an insurance company can issue a bond.
Many bonding companies are insurance companies, but not all insurance companies offer surety products. Only those companies that offer surety products can issue these bonds.
This means that you will want to work with a surety company that specializes in underwriting and providing bonds to applicants.
Additionally, there are a variety of types of bonds available – some for protecting the government and others for businesses and the general public – so you’ll want to choose a surety company that specializes in notary bonds.
Will I have to take a training class before I can become a notary?
Yes, most states require that applicants take a class before they are issued a commission as a commissioned Notary Public. The class is designed to educate the applicant on the proper procedures to follow when performing the duties of a commissioned Notary Public.
Some states also require that a background investigation be conducted on the applicant before they can be issued a commission. In many states, these classes may be offered for free or at a reduced rate by the state, so it is important to check with your local Secretary of State office to find out what classes are available in your area.
I was convicted of a crime in the past. Does this disqualify me from becoming a notary?
It depends on the crime you were convicted of and the type of crime it was. In general, if the crime was a misdemeanour and not related to fraud or dishonesty, your conviction should not disqualify you from being a commissioned Notary Public.
However, if the court imposed a fine as part of the sentence or if the court placed you on probation for the offence, you may have a problem getting bonded for your commission. For a full explanation of each state’s criminal background requirements, contact your local Secretary of State office or visit the National Notary Association’s website.
What about errors & omissions insurance?
While the surety bond protects the public, notaries are expected to practice at a high professional standard but must also protect themselves as well. This includes taking all reasonable steps to avoid mistakes and protect against any losses that may occur due to an error or omission on the part of the notary.
That’s why notaries are typically required to carry error and omission insurance, which helps protect them from any legal action taken by their clients due to an error or omission on the notary’s part. E&O insurance can help notaries pay for damages, legal fees, and other costs associated with defending themselves in court. It’s an important protection that gives notaries peace of mind when doing their job.
Is a notary bond the same as insurance?
Notary bonds protect the public from harm from the notary’s negligence or misconduct. It’s a surety bond which means it covers the public financially in case of default and ensures compliance with state law.
Notary Insurance is separate, covering the insured notary from everything except the negligent performance of official duties. It also protects the notary from liability for wrongful or forged notarizations.
When does the notary bond expire?
A notary public bond expires on the date that the notary’s commission expires. If you renew your commission, you will need to renew your Bond.
The cost of a Notary bond usually does not increase when renewed, but the premium may be subject to change from year to year. If you purchase with us, we will keep you informed of renewals and any changes.
