As a business owner, would I have a financial interest in the transactions being notarized for my company's business?

According to Section 117.107(12) of the Florida Statutes, you cannot act as a notary for a transaction in which you have a financial interest or are a party. This regulation, incorporated into notary law in 1992, is a formalization of a long-standing prohibition established by case law dating back to the 1800s and upheld through the 1990s.

Determining if you are a party to a transaction is generally straightforward. For example, if you are purchasing a home, you cannot notarize the mortgage documents or the deed. Similarly, if you are designated as the attorney-in-fact on a power of attorney document, you are not permitted to notarize the signature of the individual executing the document.

What constitutes financial interest? Although the notary laws do not define this term precisely, there are clear examples. If a notary receives a commission from a transaction (e.g., the sale of a car, an insurance policy, real estate, etc.), they are prohibited from notarizing the signatures involved. Additionally, a business owner should refrain from notarizing signatures on documents related to their business transactions.

A salaried employee (unrelated to the document signer) is exempt from this prohibition. However, what about a notary whose spouse owns the business and receives no salary? Aside from the financial interest issue, a notary cannot notarize their spouse's signature. Experts agree that the spouse of a business owner likely has a financial interest in the business transactions and should not notarize in these cases.

An attorney is exempt from this prohibition and can notarize their client's signature on a prepared document, provided they are the attorney-of-record. They are only receiving a fee for their legal or notary services. However, suppose the attorney is a party to the transaction or has an interest, such as being named the executor or administrator of an estate. In that case, they should not notarize their client's signature on those documents.

If you are still determining whether you are a party to or have a financial interest in a particular transaction. In that case, it is always safer to err on the side of caution and decline to notarize the signature. Remember, as a notary, you should be a disinterested third party who can testify about the transaction without bias.

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