A notary who is individually named as a grantee on the deed being notarized
A notary who is individually named as the trustor on the deed of trust being notarized
A notary who is acting as the lender's attorney for a loan transaction and is asked to notarize the borrower's signature on the deed of trust
A notary who will personally receive a direct financial benefit as a named principal to a financial transaction
Official source: 2026 California Notary Public Handbook (2026)
Reference: Government Code section 8224
Source checked September 7, 2026
Correct Answer
C. A notary who is acting as the lender's attorney for a loan transaction and is asked to notarize the borrower's signature on the deed of trust
Detailed Explanation
Conflict of interest exceptions. Government Code section 8224 lists the exceptions to the conflict of interest rule: a notary acting as an agent, employee, insurer, attorney, escrow holder, or lender for a party with a financial interest does NOT have a disqualifying conflict. A notary acting as the lender's attorney fits this exception. Being named individually as a grantee, trustor, or principal does create a disqualifying interest.
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