NotaryExamPrep logo NotaryExamPrep
Notarial Acts/Documentation

Karen is a notary public who also works as a licensed real estate escrow officer. She earns a commission on a transaction she is handling and is asked to notarize one of the escrow documents. May she notarize?

A

Yes. A notary acting in the capacity of an escrow holder for a person with a direct financial interest does not have a direct financial or beneficial interest in the transaction and may notarize.

B

No. Notaries who are also escrow officers must always use a separate notary.

C

No. Any financial compensation from a transaction creates a conflict of interest that bars the notary from notarizing.

D

Yes, but only if she waives her escrow commission before notarizing.

Correct Answer

A. Yes. A notary acting in the capacity of an escrow holder for a person with a direct financial interest does not have a direct financial or beneficial interest in the transaction and may notarize.

AI Explanation

Conflict of interest exceptions for agents and escrow holders. Government Code section 8224 provides a specific exception: a notary does NOT have a direct financial or beneficial interest in a transaction when acting in the capacity of an agent, employee, insurer, attorney, escrow holder, or lender for a person who has a direct financial interest. Karen, acting as an escrow holder, falls within this exception and may legally notarize.

Notarial Acts/Documentation Question #294
🔒

See the Correct Answer & AI Explanation

Instant feedback, law citations, and AI-powered explanations for all 400+ CA notary exam questions — free.

🔒 View Correct Answer & AI Explanation

No credit card required · Interactive quiz simulator