Conflict of Interest Exceptions (Government Code §8224)

Government Code §8224 prohibits a notary from notarizing any document in which they have a direct financial or beneficial interest — meaning they are individually named as a party to a financial transaction, or as a grantor, grantee, trustor, trustee, beneficiary, mortgagor, mortgagee, vendor, vendee, lessor, or lessee on a real property transaction.

The same statute explicitly provides that no prohibited conflict exists when the notary acts in the capacity of an agent, employee, insurer, attorney, escrow holder, or lender for a party who has the financial interest. The notary's employer or client may benefit from the transaction — what matters is whether the notary personally has a direct stake.

Receiving a notary fee does not create a conflict of interest. A bank employee who notarizes a mortgage where the bank is the lender is not in conflict — the bank holds the interest, not the individual notary.

Exam Tip: A persistent misconception holds that any connection to a transaction disqualifies the notary. That is wrong. The prohibition is narrow: the notary must be individually named as a principal. Notarizing for your employer who benefits from the deal is generally fine.