What is a Notary Public and Why You May Want To Be One
Congratulations!
You’ve decided you want to become a notary public. For many, it’s a solid side hustle that can make for a rewarding living. Before we dive into how to get certified, let’s understand the importance of notaries in society.
It is my goal to illustrate the value proposition of getting your commission!
Preamble: The Agreement
Before we even discuss notaries, let’s talk business, literally.
Think about the last purchase you made. Perhaps it was a coffee, cat litter, or a suit. We don’t really think about it but two elements underpin the exchange so that it can work: 1) an agreement and 2) trust.
Demonstrating the first is easy. The exchanging of a good or service at a given price between a buyer and seller is acknowledgement that both parties agree to do business. If this agreement wasn’t in place, the transaction couldn’t happen.
The second element is somewhat harder to convey and may be better explained by asking the following: Would you be more willing to engage in business if there was no system in place to seek resolution in the event of a major dispute? My guess is no. Bad actors could exploit this with impunity.
This is where a legal system is essential.
The Legal Infrastructure
A legal system and infrastructure that grants buyers and sellers these protections engenders confidence that both parties will act in good faith. Otherwise, the hurt party can seek damages through a court.
In business, disagreements are guaranteed and some are more easily resolved than others. I will illustrate two examples, one requiring the legal system and one not.
A Simple Dispute Where The Legal System is Not Used
Your Starbucks coffee doesn’t taste quite right. You kindly raise the issue with an employee. He or she agrees to offer you a refund, replacement, or both.
Conflict resolved, without much hassle.
The cost of resolution is low, which helps explain why the dispute was quickly resolved. To be specific, a replacement drink is a few dollars, at most. Furthermore, it takes little time to remake, implying it costs little of the employee’s time.
Another important takeaway here is that the legal system wasn’t used. It could have been, but the cost to resolve this in this matter would have cost more than the damage sustained, again from the buyer’s perspective, the price of the coffee.
A Complex Dispute Where The Legal System is Relied Upon:
You discover that a close cousin purports that she has control over your grandfather’s bank accounts, per a power of attorney. A review of his statements also shows a withdrawal of $50,000 over the previous two months. You consult your grandfather, who in fact is physically and mentally well, to verify these transactions. You learn that he granted no such permission and is unaware of these withdrawals.
With this news, you confront your cousin, who insists she has the Power of Attorney with your grandfather’s signature proving she was in fact granting that permission. She shrugs off your grandfather’s conflicting story as early signs of senility and dementia. She also indicates that she will not change her position on the matter.
Suspecting that this agreement between your grandfather and cousin is illegitimate, you bring the matter before a court of law.
You present your case to the judge, who requests the Power of Attorney. Your cousin presents the document, with your grandfather’s signature. The judge carefully examines it and immediately rules the document invalid. The judge also orders that your cousin do the following:
- Restore your grandfather’s position for the monies withdrawn.
- Pay your attorney fees for the case.
Conflict resolved.
Why was the judge so quick to rule? It turns out your grandfather’s signature was legally illegitimate, but how?
Enter The Notary Public
Notaries play a vital role in building trust and confidence for parties conducting business. Put simply, they legitimize agreements.
What is a legitimate agreement? Your signature is one element of affirmation, but it may not be enough, especially for important deals, like signing off on a mortgage.
Why is it not enough?
Put simply, your signature on a document does not necessarily prove you signed it. Think about the case above. It appears that the cousin forged the grandfather’s signature to get control of his finances.
So how do you legitimize this?
With a notarized document of course! A notarized document demonstrates that the person who signed the document was in fact that person. It minimizes (but not fully eliminates) the doubt that the signature was forged.
How Does This Process Work?
To get a document notarized, you generally present the unsigned document to a notary public. You present your identification to the notary, who is able to verify that you are the person you claim to be, as demonstrated by your signing of the document. This verification can easily be presented before a judge should the legitimacy of the agreement ever come into question.
Pretty awesome right!?
Why Become A Notary Public?
Help society move forward. People will always rely on notaries to help them with their personal affairs. It can be meaningful work that others will value and thank you for!
Distinguish yourself at your job. Every company benefits from having an on-site notary. It may make you more valued by your employer, which may translate to greater job security.
Boost Your Earning Potential. Believe it or not, you can actually make a solid living off your commission. There’s some serious money to be made as a loan signing agent, which your commission qualifies you to be. There are accounts of people that can turn this into an annual 6 figure income.
Diversification of Risk. I am a firm believer that being an employee is one of the riskiest decisions people make nowadays. A single source of income quickly turns into a liability should it go away. The extra income earned from your practice can help when times are rough.
Independence and Flexibility. You can work as much or little as you want. For me, this is a side hustle for my 9-5 job. For others, it’s a full time commitment.
Self Empowerment. Getting your commission gives you an opportunity to be an entrepreneur, without having to take a tremendous leap of faith by quitting your job. If done right, you will be forced to elevate your game and think like a business owner. This could be the start of a potentially life changing path.
You Get Out What You Put In
If you’re thinking that this is an easy path riches, this is not that. Your notary practice should be treated as a serious business. It will be a grind and ultimately rewarding if done right.
Congratulations. You’ve made it this far! I hope for you, this is the first important step in this exciting opportunity.
Are you ready to take the plunge?