The notary is named individually as a principal to the financial transaction.
The notary is named individually as the grantor in a real estate transaction.
The notary is acting in the capacity of an agent or escrow holder for a person who has a direct financial interest.
The notary is named individually as a beneficiary in a deed of trust.
Official source: 2026 California Notary Public Handbook (2026)
Reference: Gov. Code § 8224
Source checked September 7, 2026
Correct Answer
C. The notary is acting in the capacity of an agent or escrow holder for a person who has a direct financial interest.
Detailed Explanation
Definition of conflict of interest and statutory exemptions. According to CA Gov. Code § 8224, a notary has no direct financial or beneficial interest in a transaction if the notary acts merely in the capacity of an agent, employee, insurer, attorney, escrow, or lender for a person who does have a direct financial or beneficial interest.
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