{"id":96,"date":"2013-11-19T13:43:35","date_gmt":"2013-11-19T20:43:35","guid":{"rendered":"http:\/\/abclegaldocs.com\/blog-Colorado-Notary\/?p=96"},"modified":"2020-07-27T14:18:48","modified_gmt":"2020-07-27T20:18:48","slug":"disqualifying-interest","status":"publish","type":"post","link":"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/disqualifying-interest\/","title":{"rendered":"Notary Disqualifying Interest"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/disqualifying-interest\/#Notary_Disqualifying_Interest\" >Notary Disqualifying Interest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/disqualifying-interest\/#Neutral_Unbiased_Witness\" >Neutral, Unbiased Witness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/disqualifying-interest\/#Granting_Signing_Authority_to_an_Employee\" >Granting Signing Authority to an Employee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/disqualifying-interest\/#Notary_Public_Serves_All_of_the_Public\" >Notary Public Serves All of the Public<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/disqualifying-interest\/#Decline_if_there_is_a_Disqualifying_Interest\" >Decline if there is a Disqualifying Interest<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Notary_Disqualifying_Interest\"><\/span><img decoding=\"async\"  class=\"alignleft size-full wp-image-8720\" src=\"data:image\/gif,GIF89a%01%00%01%00%80%00%00%00%00%00%FF%FF%FF%21%F9%04%01%00%00%00%00%2C%00%00%00%00%01%00%01%00%00%02%01D%00%3B\" data-layzr=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/wp-content\/uploads\/notary-disqualifying-interest-320x200-1.jpg\" alt=\"notary disqualifying interest\" width=\"320\" height=\"200\" \/>Notary Disqualifying Interest<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><strong>Colorado notary law<\/strong>, CRS 24-21-504, <strong>Authority to Perform Notarial Act<\/strong>, prohibits a notary from performing any notarial act for a transaction where the notary has a <strong>disqualifying interest<\/strong> in the transaction.<\/p>\n<p style=\"text-align: justify;\">A notary is disqualified by a disqualifying interest if:<br \/>\n1. The notary or the notary&#8217;s spouse, partner in a civil union, ancestor, descendant, or sibling is a party to or Is named in the record that is to be notarized, or<br \/>\n2. The notary or the notary&#8217;s spouse, or partner in a civil union, may <strong>receive <span style=\"text-decoration: underline;\">directly<\/span><\/strong>, and as a <strong>proximate result<\/strong> of the notarization, any <strong>advantage, right, title, <\/strong><strong>interest, cash, <\/strong>or <strong>property<\/strong> exceeding the notary fee allowed by law.<\/p>\n<p style=\"text-align: justify;\">A notarial act performed in violation of this law is <strong>voidable<\/strong>.<\/p>\n<p style=\"text-align: justify;\"><!--more--><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Neutral_Unbiased_Witness\"><\/span>Neutral, Unbiased Witness<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">The notary must maintain a role as a <strong>neutral, unbiased official witness<\/strong> to the transaction, and not be a named party or <strong>beneficiary<\/strong> of the transaction.<\/p>\n<p style=\"text-align: justify;\">To remain a disinterested, neutral party, and avoid problems, the notary <strong>may not notarize <\/strong><strong>documents for the specified family members.\u00a0 <\/strong>Although the law does not specifically mention ex-spouses, in-laws, aunts, uncles, cousins, half-siblings, step-parents, step-children, or adopted children, it is a <span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/professor-closens-notary-best-practices-guide-book\/\" target=\"_blank\" rel=\"noopener noreferrer\">best practice<\/a><\/strong><\/span> to avoid notarizing for any family members to avoid an appearance of <strong>favoritism<\/strong> or <strong>impropriety<\/strong>.<\/p>\n<p style=\"text-align: justify;\">In his book, <span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/professor-closens-notary-best-practices-guide-book\/\" target=\"_blank\" rel=\"noopener noreferrer\">Professor Closen&#8217;s Notary Best Practices<\/a><\/strong><\/span>, notary author and legal expert <strong>Michael Closen<\/strong> states in section 19.11: <em>The notary should abide by the <strong>ethical duty<\/strong> to refrain from notarizing for any known member of the notary&#8217;s family in any degree of relationship by blood, marriage or adoption.<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"background-color: #ffff00;\"><strong>Note<\/strong><\/span>: Before Colorado notary laws changed to <strong>RULONA<\/strong> on July 1, 2018, the old notary law did not prohibit notarizing for a spouse or family member. Some states prohibit notarizing for a spouse or other family members, some states allow it.<\/p>\n<p style=\"text-align: justify;\">The law does not prohibit notarizing for friends, neighbors, co-workers, bosses, business partners, clients, or customers.<\/p>\n<p style=\"text-align: justify;\">Many businesses have workplace <strong>notary employees<\/strong> for the convenience of the business or customers.\u00a0 Workplace notaries may notarize documents for their co-workers, managers, executives, or customers only if they are <strong>not related<\/strong> by marriage. civil union, or familial status.<\/p>\n<p style=\"text-align: justify;\">A real estate agent or commissioned <strong>salesperson<\/strong> who is also a notary must avoid notarizing a document for a transaction where the agent or salesperson will receive a <strong>sales commission<\/strong> when the transaction closes.\u00a0 To avoid a conflict of interest, another person in the office, such as an office assistant, or a disinterested notary, could notarize the document.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Granting_Signing_Authority_to_an_Employee\"><\/span>Granting Signing Authority to an Employee<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><img decoding=\"async\"  class=\"alignleft size-full wp-image-7923\" src=\"data:image\/gif,GIF89a%01%00%01%00%80%00%00%00%00%00%FF%FF%FF%21%F9%04%01%00%00%00%00%2C%00%00%00%00%01%00%01%00%00%02%01D%00%3B\" data-layzr=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/wp-content\/uploads\/checkmark-box-green.jpg\" alt=\"checkmark box green\" width=\"50\" height=\"50\" \/><strong>Tip<\/strong>: It may be useful for the President or CEO of a business or <strong>family business<\/strong> to delegate or grant <strong>signing authority<\/strong> to a trusted employee or an independent contractor.\u00a0 For oversight, the authority can be delegated or granted on a case-by-case basis, requiring written approval.<\/p>\n<p style=\"text-align: justify;\">This may be useful if the President is out of the office, traveling, sick, or hospitalized, or if the contract needs to be notarized by a notary employee who is a <strong>family member<\/strong>, related to the President, and the notary is <strong>disqualified<\/strong> under state notary law from notarizing for a family member.<\/p>\n<p style=\"text-align: justify;\">Signing authority might be delegated or granted to a trusted employee such as an executive assistant, office manager, sales manager, project manager, foreman, supervisor, bookkeeper, secretary, or treasurer.<\/p>\n<p style=\"text-align: justify;\">If no other suitable employee is available, another possibility is to hire a <strong>virtual assistant<\/strong> or a <strong>nominee officer<\/strong> as an <strong>independent contractor<\/strong> and pay a service fee for signing contracts when authorized by the President.<\/p>\n<p style=\"text-align: justify;\">The corporation <strong>bylaws<\/strong> or LLC <strong>operating agreement<\/strong> must include provisions and restrictions for delegating or granting of signing authority by the President or CEO.<\/p>\n<p style=\"text-align: justify;\">Sample language for <strong>signing authorization<\/strong>: <em>Employee\/job title\/contractor shall have the authority to enter into a written contract binding upon the business, only when specifically authorized in writing, signed by the President\/CEO of the business.\u00a0 All contracts shall be in writing, no verbal contracts are authorized.<\/em><\/p>\n<p style=\"text-align: justify;\">A detailed service contract, prepared or reviewed by an <strong>attorney<\/strong>, should be used when hiring a virtual assistant or a nominee officer.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Notary_Public_Serves_All_of_the_Public\"><\/span>Notary Public Serves All of the Public<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">If a notary employee serves <strong>customers<\/strong>, the notary should also serve <strong>non-customers<\/strong>.\u00a0\u00a0A notary public is a <strong>public official<\/strong>, and should not deny notary services because a person is not a customer or client.<\/p>\n<p style=\"text-align: justify;\">A person should not be required to buy products or services or open an account as a <strong>prerequisite<\/strong> to receiving notarial services.\u00a0 Showing preferential treatment does not maintain <strong>neutrality<\/strong>, and the notary is serving as a private notary, not a public notary.<\/p>\n<p style=\"text-align: justify;\">As a public official, a notary may not accept a gift, bonus, tip, gratuity or anything of material value, other than the authorized fee for <strong>services rendered<\/strong>.\u00a0 States have <span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/bribery-corrupt-influence-notary-public\/\" target=\"_blank\" rel=\"noopener noreferrer\">gift ban<\/a><\/strong><\/span> laws or clauses in the state constitution to prevent <span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/coercion-duress-undue-influence-notarizing\/\" target=\"_blank\" rel=\"noopener noreferrer\">undue influence<\/a><\/strong><\/span> of public officials.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Decline_if_there_is_a_Disqualifying_Interest\"><\/span>Decline if there is a Disqualifying Interest<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Notaries must <strong>recuse<\/strong> themselves and avoid notarizing in situations where they have a <strong>disqualifying interest<\/strong>.\u00a0 It is a best practice to make a note of the recusal and the reason in the <span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/keeping-notary-journal\/\" target=\"_blank\" rel=\"noopener noreferrer\">notary journal<\/a><\/strong><\/span>.<\/p>\n<p>[Updated 2020-07-27] updated for RULONA laws<\/p>\n<p style=\"text-align: justify;\">Disclaimer: This information is not legal advice. Contact an attorney for legal advice.<\/p>\n<p style=\"text-align: justify;\">Visit our website for <a href=\"https:\/\/abclegaldocs.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Colorado Springs Mobile Notary<\/strong><\/a> services or <a href=\"https:\/\/abclegaldocs.com\/Colorado_Notary_Training.htm\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Colorado Notary Training<\/strong><\/a> classes.<\/p>\n<p style=\"text-align: justify;\">\u00a9 Copyright 2013 ABC Legal Docs, LLC All rights reserved. Do not copy. Citations welcome. Terms of Use apply.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Notary Disqualifying Interest Colorado notary law, CRS 24-21-504, Authority to Perform Notarial Act, prohibits a notary from performing any notarial act for a transaction where the notary has a disqualifying interest in the transaction. A notary is disqualified by a disqualifying interest if: 1. The notary or the notary&#8217;s spouse, partner in a civil union, ancestor, descendant, or sibling is a party to or Is named in the record that is to be notarized, or 2. The notary or the notary&#8217;s spouse, or partner in a civil union, may receive directly, and as a proximate result of the notarization, any <\/p>\n","protected":false},"author":1,"featured_media":8720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[12,11],"tags":[1925,348,17,103,377,72,3033,3036,3037,1276,2969,1444,100,3039,1275,5,349,3035,99,3040,3034,101,521,3038,22,102],"class_list":["post-96","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-notary-law","category-notary-terms","tag-beneficiary","tag-bylaws","tag-colorado","tag-customers","tag-disqualified","tag-disqualifying-interest","tag-family","tag-family-business","tag-family-member","tag-gift-ban","tag-impropriety","tag-michael-closen","tag-neutral","tag-nominee-officer","tag-non-customers","tag-notary","tag-operating-agreement","tag-partner","tag-proximate","tag-recuse","tag-spouse","tag-unbiased","tag-undue-influence","tag-virtual-assistant","tag-witness","tag-workplace","has_thumb"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - 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