The surety bond that a notary needs to obtain is often misunderstood. Maybe you have been told that you need a name, address, and phone number for everyone who has ever signed your journal when in fact, no such names are necessary.
Perhaps you've been told that the only information required is the name of the company offering each bond or maybe they simply say "surety" without specifying what kind of surety at all. Have you been told anything else? That's pretty much it, which generally leaves most people wondering why anyone in their right mind would put up a large sum of money in order to be a notary public
In order to answer why every applicant must go through this process, we first need to take a look at what a surety bond is.
When applying for a notary commission, state statutes generally require that you purchase a surety bond. The purpose of the bond is to protect the public by ensuring that they will receive all documents properly acknowledged or witnessed. If you harm someone through neglect or bad judgment (by not witnessing a document properly), this insurance will make sure the injured party is compensated for their loss.
"Notaries Public are appointed by an official body called "The Secretary of State". A Notary Public must swear by oath to discharge his duty with integrity and fidelity, but without fear or favor."
By law, when notarizing an instrument (i.e. signing or witnessing a document), you are certifying that the signer appeared in front of you; was identified with sufficient certainty to make you believe he/she is the person he/she claims to be; acknowledged by signature that this document is his/her free act and deed before your notarial acts; and that you have neither made nor received payment for notarizing the document.
"Bonding ensures that consumers dealing with bonded agents can accept all documents signed by them without risk of financial loss due to dishonesty or errors by the agent."
When thinking about whether or not they want to become a notary public there are two which could arise:
1) you are not able to locate the client or their assets in order to complete your notarization.
2) You are unable to sign or acknowledge that document because of your mental state, which is why an acknowledgment affidavit will be needed.
The reason why most clients choose surety bonds is that they are less expensive than other types of insurance policies, such as errors and omissions, malpractice liability, fidelity bonds, etc. They can also be acquired quickly online with no medical exams required for applicants under sixty-five years of age. By providing you with a professional indemnity policy through a surety bond agency you will never have to worry about financial consequences for not doing the job right.
The answer to this question depends on a number of things. The first question that must be asked is what the surety requirement will be for your state? In general, it should cost about 2% or $100. However, many states have minimum requirements between 1 and 4%, so depending on which state you live in it could turn out to be a lot more expensive than others.
Another thing to take into account is whether or not you will need an additional bond other than the standard Notary Public surety bond. If you are looking for a fidelity bond as well as a surety bond then depending on which state you live in it could turn out to be even more expensive. Finally, if those don't apply or aren't enough, you could also be required to purchase errors and omissions insurance, which would cost even more money.
Many people assume that the only person who stands to benefit from a surety bond is the notary themselves, but this is far from true. Surety bonds benefit everyone by making things safer and more secure for the public.
In today's world where there are so many financial transactions taking place on a daily basis, it is important to make sure that all documents are properly handled. By requiring notaries to be bonded it ensures that no matter what happens during their commission they will be able to compensate any party who was wronged by them or through a mistake of theirs.
Although there are costs associated with getting a surety bond, you can rest easy knowing that your investment guarantees protection for you and for those signing documents in front of you. If something goes wrong while you are acting as a notary public, having this bond will ensure that your clients will be able to file claims on the financial security that the surety bond has provided for them.
In the state of Texas, being a notary public is a very important job. Notaries are responsible for taking oaths and affirming documents on behalf of the signer. They also make sure that all transactions are safe, secure, and binding. Along with this extensive list of responsibilities come many different benefits to having a surety bond as opposed to other types of insurance policies or coverage plans.
First and foremost among these is the fact that surety bonds act as financial protection for anyone who relies on your notarization services. If you were to make an error or omission during the course of your job then you wouldn't necessarily be held financially liable for it like you would be if you didn't have this type of bond in place. This financial backstop ensures that you are able to pay for any errors, omissions, or failures of duty.
Another benefit is the fact that you will be covered for legal costs if anyone decides to sue you in connection with your notarization services. Although it may seem counterintuitive, having a surety bond actually makes it easier to perform your job since you won't have to worry about any repercussions if something goes wrong.
Finally, a surety bond acts as a peace of mind knowing that even if anything were to happen during the course of your work you would still be protected from financial harm.