Selling your home on your own can be an exciting venture. You get to control the entire selling process, potentially save on commissions, and call the shots on how you want to market your property. However, handling the various documents involved in a real estate transaction can quickly become complicated.
One critical aspect that many sellers overlook is the role of a real estate notary. In this article, we’ll explore what a real estate notary is, why their services matter, and how to find the right one for your FSBO transaction.
Defining a Real Estate Notary
A real estate notary a.k.a. a notary public is a state-appointed official who is authorized to witness the signing of important documents and verify the identities of the people signing them. While notaries can handle a wide range of documentation, in the context of real estate, their primary responsibility is to ensure the legitimacy of real estate transactions.
When a person is commissioned as a notary public, they receive legal authority to perform specific notarial acts, such as administering oaths, affirmations, and certifying signatures. These acts help protect against fraud and ensure that all parties are who they claim to be.
Role of a Notary in Real Estate Transactions
A notary serves as an impartial gatekeeper who can prevent fraud and strengthen the integrity of the entire process. Let’s explore a notary’s core responsibilities and how they execute them in more detail:
Verifying Identities and Signatures
One of the main responsibilities of a real estate notary is to confirm that each signer is who they claim to be. The notary will typically ask for a valid, government-issued photo ID such as a driver’s license or passport before the signing occurs. This helps minimize the risk of identity theft or forgery.
Administering Oaths and Affirmations
In certain real estate documents or related affidavits, signers may be required to swear or affirm that the statements they are making are true. A notary public has the authority to administer these oaths or affirmations, which carry the same legal weight.
If any statements turn out to be false, the signer can face serious legal consequences, including perjury charges. This helps reinforce the integrity of the transaction.
Applying the Notarial Seal
A notary’s official seal (often a stamp or embosser) is more than just a formality. This seal makes the document valid in the eyes of the law and acts as proof that the notary verified the identities and signatures involved. In the event of a legal dispute, a document carrying a valid notarial seal has a higher likelihood of standing up in court.
Types of Documents a Real Estate Notary May Handle
Notaries are responsible for confirming critical details and ensuring that all paperwork is executed correctly for a variety of documents. Let’s get into these types of documents and how a notary’s involvement safeguards everyone’s interests:
Deeds and Title Transfers
Documents such as warranty deeds or quitclaim deeds transfer ownership of a property from one party to another. Notaries ensure these deeds are signed correctly and that the property description is accurate. Any errors in description or ownership details can delay your closing date—an especially stressful scenario if you’re trying to time your sale perfectly. The notary’s involvement adds a layer of verification that protects everyone’s interests.
Mortgage and Loan Documents
While FSBO sellers may not always deal directly with a buyer’s mortgage paperwork, some buyers might finance a portion of the purchase. According to real estate statistics, financed buyers typically borrow about 74% of the home price.
Promissory notes, deeds of trust, or other lender paperwork often require notarization. These documents outline the financing terms and ensure that the borrower is legally obligated to repay the loan. A notary’s role here is to confirm that both borrower and lender are executing the documents voluntarily and with a clear understanding of the obligations.
Affidavits and Power of Attorney
Sometimes, a property seller or buyer may not be physically present to sign documents, or an individual with legal authority may need to act on someone else’s behalf. These scenarios call for power of attorney documents or related affidavits. By notarizing these documents, the notary verifies the authenticity of the transaction.
Where and How to Find a Real Estate Notary
When looking for a notary, you need someone who is readily available, reliable, and knowledgeable. Depending on your location and schedule, one of these options may be the best fit for your needs:
Local Title Companies and Banks
For many first-time sellers, local title companies and banks can be an excellent starting point. These institutions frequently offer notary services as part of their broader suite of financial and real estate products. They may even include some services at a reduced cost when you use their other offerings, such as mortgage refinancing or escrow accounts.
Independent or Mobile Notaries
A mobile notary can travel to your location, whether it’s your home, workplace, or even a coffee shop, so you don’t have to fit another errand into your busy schedule. However, keep in mind that the convenience might come with higher travel fees.
Online Directories and State Resources
State bar associations and official notary listings are reliable resources for finding a qualified professional. These lists often include important details such as the notary’s license status and any specialized experience they may have (like handling real estate transactions). Always verify that the notary’s commission is current and that there are no disciplinary actions pending against them.
Costs and Considerations for FSBO and First-Time Sellers
Selling your home on your own involves careful financial planning. In particular, notary fees, and the need for expert guidance can add unexpected layers to your budget. Below, we’ll explore how these costs vary and why they’re worth factoring into your FSBO strategy:
Typical Notary Fees
Notary fees vary significantly by state and document type. Some states place strict caps on what notaries can charge per signature, while others allow a broader range. If you’re using a mobile notary, expect to pay extra for their travel fees. For FSBO sellers looking to keep budgets tight—especially since the typical FSBO home sold for about $380,000 compared to $435,000 for agent-assisted sales—being aware of these costs ahead of time can help you plan effectively.
Budgeting Notary Services into Your Closing Costs
Closing costs include a variety of fees such as title searches, transfer taxes, and, of course, notary fees. If you’re selling on your own, make sure to incorporate notary expenses into your budget. Gathering quotes from multiple providers and understanding any potential add-on fees (like the mobile notary’s travel surcharge) is a good strategy.
Keep in mind that while many FSBO sellers handle marketing tasks themselves—e.g., putting up a yard sign (12%) or listing on online classifieds (3%)—professional notary work is not something to cut corners on.
Value of Professional Guidance
Roughly 10% of FSBO sellers find “understanding and performing paperwork” to be the most difficult aspect of selling their home. Hiring a reputable notary can help you avoid costly missteps. Even though the fee might seem like an extra expense, it’s a small price to pay compared to the potential legal or financial fallout from poorly notarized documents.
Ensuring a Smooth Notarization Process
A little preparation goes a long way toward preventing costly notarization mishaps. Let’s look at how reviewing documents in advance, confirming credentials, and communicating special circumstances can streamline the process:
Preparing Documents in Advance
A little prep work can go a long way. Review all your documents for errors or omissions before the notary arrives. This includes double-checking the spelling of names, addresses, and legal descriptions.
If a detail is incorrect or missing, it could invalidate the document or create delays. Additionally, ensure everyone who needs to sign has valid, government-issued IDs on hand.
Verifying the Notary’s Credentials
Always make sure your chosen notary has an up-to-date commission from the state. Some states also require notaries to carry errors and omissions insurance or a surety bond. If you have concerns, it’s okay to ask about their experience with real estate forms. A seasoned notary will be familiar with common pitfalls and able to guide you through the process smoothly.
Communicating Any Special Circumstances
If you’re working with a power of attorney or have signers who are elderly, disabled, or need interpretation services, let the notary know well in advance. By informing the notary of these special requirements early, you can avoid last-minute scrambling and ensure the process remains transparent and valid.
Potential Pitfalls and How to Avoid Them
Even minor oversights can derail a real estate transaction once documents are notarized. Let’s discuss how to avoid common pitfalls such as incorrect information and notary conflicts of interest, and state-specific requirements:
Incomplete or Incorrect Information
Whether it’s the property’s legal description or the signer’s name, a small error can lead to big problems down the line. Always proofread or consult a professional to confirm that every line is correct. Remember, once documents are notarized and recorded, fixing mistakes can be more complicated and costly.
Notary Conflicts of Interest
A notary must remain impartial, which means they cannot notarize documents for immediate family members or if they stand to benefit from the transaction. This principle is in place to prevent ethical conflicts and ensure that all signers are treated fairly.
Failing to Meet State-Specific Requirements
Every state has its own rules about notarial acts, such as whether witnesses are required or whether documents can be notarized online. Not adhering to these can result in having your documents rejected by the county recorder’s office or, worse, invalidating the entire transaction. Double-check local guidelines before scheduling your notary appointment.
Conclusion
While a real estate notary ensures legal credibility by confirming identities and stamping your documents, you still need to navigate everything else that comes with a FSBO sale—from pricing to marketing. Give your home sale the streamlined approach it deserves with Propbox.
We specialize in automating and organizing every stage so you can sell faster, at a lower cost, and with less mental load. By eliminating the 6% realtor commission and leveraging our AI-enhanced valuation tools, you’ll stay in command of your sale. It’s a one-stop solution that offers control, transparency, and peace of mind—everything you need to protect your interests and see a bigger return when you close.