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Notarial Acts/Documentation

A notary public may NOT perform a notarial act if they have a direct financial or beneficial interest in a transaction. In which of the following scenarios is the notary legally PERMITTED to notarize the document?

A

The notary is named individually as a principal to the financial transaction.

B

The notary is named individually as the grantor in a real estate transaction.

C

The notary is acting in the capacity of an agent or escrow holder for a person who has a direct financial interest.

D

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.

Notarial Acts/Documentation Question #6
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