Notary Fee: Definition, Example, and FAQs
What Is Notary Fee?
A notary fee is the charge collected by a notary public for their services in witnessing signatures, administering oaths, or certifying copies of documents. These fees are typically fixed or capped by state or local laws and are considered part of transaction costs in various financial and legal dealings. The primary role of a notary public is to deter fraud and ensure the proper execution of legal documents by verifying the identity of the signer and confirming their willingness to sign. Notary fees compensate the notary for their time, expertise, and the legal responsibility they undertake. This service falls under the broader category of legal documents processing within real estate and other financial sectors, ensuring the integrity of a contract or agreement.
History and Origin
The practice of notarization boasts a long and distinguished history, tracing its origins back to ancient civilizations. In ancient Rome, public officials known as "scribae" or "notarius" recorded judicial proceedings and transcribed state papers, serving as trusted impartial witnesses. The role evolved through the Middle Ages, with notaries appointed by ecclesiastical and later royal authorities to authenticate records and legal instruments12, 13.
In the United States, the concept of a notary public was brought over by European settlers, with the first American colonial notary public appointed in 1639 in New Haven, Connecticut11. Over centuries, their duties have adapted from recording broad legal and commercial matters to primarily focusing on verifying identities and witnessing signatures on private and public documents. This historical progression highlights the enduring need for an unbiased third party to ensure the authenticity of important paperwork.
Key Takeaways
- A notary fee is the compensation paid to a notary public for their official services.
- These fees are often regulated by state laws, setting maximum allowable charges.
- Notaries play a crucial role in preventing fraud by verifying identities and ensuring voluntary signatures on documents.
- Notary services are essential in various transactions, including real estate, loans, and legal agreements.
- The fees reflect the notary's legal responsibilities and the importance of their impartial witness.
Interpreting the Notary Fee
A notary fee signifies the cost associated with obtaining official verification of a signature or document. When encountering a notary fee, it implies that a specific document requires notarization to ensure its legal validity and to mitigate the risk of fraud. The fee covers the notary's act of identifying the signer, witnessing their signature, and affixing their official seal and signature, thereby transforming a private document into a matter of public record, often necessary for processes like recording a deed or finalizing a loan.
These fees are typically standardized within a given jurisdiction, meaning there's little room for negotiation. For example, in California, notary publics may charge up to $15 per signature for an acknowledgment or jurat8, 9, 10. Understanding this fee means recognizing that it is a mandated cost for a critical verification service, not a variable charge based on the complexity or value of the underlying transaction.
Hypothetical Example
Suppose Sarah is purchasing a new home, and her mortgage lender requires several documents to be notarized as part of the closing costs. Among these documents are the deed of trust and an occupancy affidavit.
Sarah meets with a notary public. The notary verifies Sarah's identification, observes her signing the deed of trust, and then affixes their seal and signature to the document. For this specific act, which is an acknowledgment, the notary charges a fee. If the state's maximum fee for an acknowledgment is $15 per signature, and Sarah needs two documents notarized, the total notary fee would be $30 (assuming one signature per document). This fee is distinct from other closing expenses, such as legal fees or escrow charges, and directly compensates the notary for their official services in ensuring the integrity of the real estate financial transaction.
Practical Applications
Notary fees appear in numerous real-world financial and legal contexts where the authenticity of signatures and documents is paramount. They are commonly encountered in:
- Real Estate Transactions: When buying or selling property, documents like deeds, mortgages, and certain affidavits often require notarization to be valid for official records. The Consumer Financial Protection Bureau (CFPB) acknowledges notary fees as part of mortgage closing disclosures, highlighting their presence in home loan processes6, 7.
- Loan Agreements: Beyond mortgages, various personal and business loan documents, including promissory notes or security agreements, may necessitate notarized signatures to ensure their enforceability.
- Estate Planning: Wills, trusts, and power of attorney documents often require notarization to confirm the identity and intent of the signers, preventing potential disputes later.
- Business Transactions: Contracts, partnership agreements, and corporate resolutions frequently use notarization to add a layer of legal assurance.
- Affidavits and Sworn Statements: Any document where an individual attests to the truthfulness of a statement under oath will typically require a notary's jurat, which includes a notary fee.
These instances underscore the notary's role in safeguarding the integrity of diverse financial and legal instruments.
Limitations and Criticisms
While notary fees are a standard and necessary component of many transactions, certain limitations and criticisms can arise. One primary consideration is the fixed nature of these fees. Since state laws often cap the maximum amount a notary can charge, there is limited flexibility, which might not always fully account for the notary's time or travel, especially for complex or distant assignments. For instance, some states set fees as low as a few dollars, potentially making it less lucrative for mobile notaries who incur travel expenses.5
Furthermore, errors made by notaries, though unintentional, can have significant legal and financial consequences for the parties involved. Such mistakes, whether misidentification or improper execution of notarization, can lead to documents being rejected or even legal challenges. To mitigate this, many notaries carry errors and omissions (E&O) insurance, which helps cover legal defense costs and damages resulting from honest mistakes2, 3, 4. This highlights that despite the seemingly small notary fee, the responsibility assumed by the notary is substantial, and any oversight can lead to significant issues. The debate often centers on balancing affordable public access to notarization with ensuring notaries are adequately compensated and protected against liability.
Notary Fee vs. Closing Costs
The notary fee is a specific charge for the services performed by a notary public, such as witnessing signatures or administering oaths. It is typically a small, fixed amount per signature or notarial act, often regulated by state law.
In contrast, closing costs are a much broader category of expenses incurred at the end of a real estate or loan transaction. These can include a wide array of charges such as lender fees, title insurance, appraisal fees, inspection fees, legal fees, recording fees, and property taxes. The notary fee is merely one small component within the larger umbrella of closing costs. While closing costs can amount to thousands of dollars, the notary fee usually constitutes a very minor portion of that total.
| Feature | Notary Fee | Closing Costs |
|---|---|---|
| Definition | Charge for notary public's specific services | Aggregate of all expenses incurred to finalize a real estate or loan transaction |
| Scope | Narrow, per notarial act or signature | Broad, includes various fees from multiple service providers |
| Regulation | Often capped by state law | Varies by state, lender, and type of transaction; includes regulated and unregulated fees |
| Amount | Typically small (e.g., $5–$25 per act) | Can be thousands of dollars (typically 2-5% of loan amount) |
| Components | Acknowledgment, jurat, copy certification | Lender fees, title insurance, appraisal, legal, recording, notary fees, etc. |
FAQs
1. Who pays the notary fee?
The party benefiting from the notarization typically pays the notary fee. In real estate transactions, it can vary based on local customs or the specifics of the purchase agreement, with either the buyer or seller, or both, covering different notary-related expenses.
2. Are notary fees regulated?
Yes, in most U.S. states, notary fees are regulated by state law, which sets a maximum amount a notary public can charge for specific services. Notaries are permitted to charge less than the maximum or even waive the fee. Different states have different fee schedules for various notarial acts, such as acknowledgments or jurats.
1### 3. Can I get a document notarized for free?
Sometimes. While notaries are permitted to charge a fee, some entities, like banks or credit unions, may offer free notary services to their customers. Additionally, some government agencies or non-profit organizations might provide notarization without charge for specific types of documents or for certain populations.
4. What is the purpose of a notary fee?
The notary fee compensates the notary public for their role as an impartial witness, verifying the identity of the signer, ensuring they sign willingly, and confirming the authenticity of the document. This service adds a layer of protection against fraud and ensures the legal validity of important legal documents and transactions.
5. Is a notary fee included in my mortgage closing costs?
Yes, if any documents within your mortgage closing package require notarization, the associated notary fees will be listed as part of your overall closing costs. These will typically be itemized on your Closing Disclosure.