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Misconduct/Fees

A notary public is named individually as a 'Lessor' in a commercial property lease agreement. They perform the notarization for the Lessee's signature on this same document. Why is this illegal?

A

The notary must use an embosser seal for leases.

B

The notary has a direct financial or beneficial interest in the transaction.

C

Notaries cannot notarize commercial leases.

D

The notary failed to use a subscribing witness.

Official source: 2026 California Notary Public Handbook (2026)

Reference: Gov. Code section 8224

Source checked September 7, 2026

✓

Correct Answer

B. The notary has a direct financial or beneficial interest in the transaction.

Detailed Explanation

Conflict of interest definitions. According to Gov. Code section 8224, a notary public has a direct financial or beneficial interest in a transaction if they are named, individually, as a grantor, grantee, mortgagor, mortgagee, trustor, trustee, beneficiary, vendor, vendee, lessor, or lessee to a real property transaction.

Misconduct/Fees Question #48
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