When you need a document notarized, it would be convenient to go to a notary public that is a relative, friend or business partner. But would that notarization be legal? Read on to find out what types of conflicts may exist between notaries and their clients.

The main role of a Notary Public is to act as an impartial witness in legal transactions. The key word here is "impartial". The notary public is not barred from notarizing documents for relatives or any other document signer unless the notarization would give a direct financial benefit or any other beneficial advantage to the notary public, thereby making him or her partial to the transaction.

Examples of a notary public having a direct financial benefit or beneficial advantage to a transaction are as follows:

1) If a notary is listed as a principal to any type of financial transaction as an individual, such as a stock transaction or a beneficiary designation for a bank account or trust etc.

2) In a real estate transaction, the signer cannot be listed individually as: a beneficiary; the grantor or grantee of the real property deed; the holder of the mortgage or one receiving the mortgage; the trustor or trustee of a property trust; the seller or buyer; or the lessor or lessee of the property in question.

In other words, if the notary may directly benefit financially in any way from the transaction he or she may not notarize.

A notary would not have a direct financial benefit in a transaction if the notary public is acting as an agent (such as real estate agent) employee (such as for a mortgage broker), an attorney handling the transaction, an escrow holder, an insurer (such as title insurer),or lender for a person having a direct financial or beneficial interest in the transaction.

For example, if a notary is receiving a commission on a transaction such as a mortgage, insurance policy or escrow transaction, that would not be considered a direct financial interest as long as he or she is not also named as one of the principals.

In states with community property laws, such as California, notaries should be careful about notarizing all documents for spouses or domestic partners. A notarization might also later be challenged in court if someone claims the notary had an emotional interest in the transaction (such as a sister notarizing a document for a brother regarding a child custody matter, or someone notarizing a document for business partner that may later designate him as a beneficiary or heir etc.)

Notaries can never notarize documents for themselves.

If there is any doubt about impartiality or whether or not to notarize, the notary should seek the advice of an attorney.

Note: This article was written in reference to California notaries. Laws may differ in other states. Consult the Notary Section in your state's Secretary of State Office or the appropriate state government agency.

Martine Henry is a Notary Public, businesswoman and author. For more information on California notary public forms, certificates, and policies or for more general information on California notaries, visit: http://glendaleburbanknotary.com.