Notary Signing Agent: What They Do And Why You Need One

For lenders, the notary signing agent serves as the final link at the end stage of the home loan transaction. Lenders hire notary signing agents to ensure borrowers complete their real estate loan documents correctly.

Loan paperwork can be confusing, so the involvement of notary signing agents in the loan closing process is a real benefit. They understand your state’s notary laws, any applicable federal laws to take into account and many other details regarding mortgage documents and the loan process.

This article will cover what a signing agent is, their responsibilities and why a notary for real estate is so important.

What Is A Notary Signing Agent?

A notary signing agent (NSA) reviews and finalizes a borrower's mortgage loan documents. The notary signing agent serves as a third party in the real estate closing process and plays a crucial role in preventing real estate fraud.

Lenders and title companies hire notary signing agents to review loan documents and witness the borrower signing the paperwork.

Notary Public Vs. Notary Signing Agent

A notary signing agent is an expert notary public specifically trained and certified to assist lenders as borrowers complete their loan applications during closing.

All signing agents must have an active notary commission, which is the certification they receive from the state they work in. Because the appointment covers the entire state, once an NSA receives their notary commission, they are authorized to notarize loan documents anywhere within the state.

A notary public without this certification can only witness signatures for legal documents such as wills, trusts, deeds and affidavits and confirm the agreements.

A notary public and a notary signing agent must have a state-issued commission. And any notary public can become a signing agent by completing state-specific certification requirements.

What Does A Notary Signing Agent Do?

Notary signing agents verify the signer’s identity by closely reviewing the documentation they present at closing. They also confirm the borrower is acting of their own free will and understands the contents of the documents they’re signing.

NSAs are responsible for printing the loan documents, witnessing and verifying the loan signing and then sending the signed, notarized documents to the lender, title company or relevant party.

The signing agent’s signature assures there was no fraud or duress during the transaction. Legal documents, like the paperwork transferring title from seller to buyer, won’t be accepted without a notary signing agent’s signature and stamp.

Notary signing agents play an important role in the closing process, especially for remote closings. They often travel to the home of the seller or buyer and are expected to have a complete understanding of all the documents they review with the client.

The Real Estate Notarization Process

Notary work involves a specific process an NSA must follow. How long it takes to notarize real estate documents also depends on the type of loan, the borrower and the number of pages. But most notary signing agents allow at least 1 hour for notary work.

Here are the basic steps of the notarization process:

• The notary may require you to appear in person. Remote notarization by video conference is possible, but it will depend on state law and your lender.
• The notary will identify the signer. Before the loan is signed, the notary signing agent will confirm the signer’s identity. The signer typically provides a government-issued ID. Other methods of identification include “personal knowledge,” which means the notary either knows the signer or their identity is confirmed by 1 – 2 credible witnesses.
• The documentation is reviewed. The notary signing agent will review the documents to make sure everything is accurate. They will also make sure the name on the documents matches the name on the ID.
• Most notaries create a record of the signing. Many states require a notary to keep a record of all notarizations. The record may be useful if a document or notarization is ever called into question.
• The notary signing agent signs and seals the documents. Once everything has been reviewed and signed, the notary will sign and seal the closing documents, typically the mortgage note, deed of trust and affidavit of owner occupancy. Depending on the lender and the loan, a subordination agreement and signature affidavit may also be notarized.

Why A Real Estate Notary Is Important

The primary function of the real estate notary is to prevent fraud. The notary’s signing services include verification of document accuracy and the formal identification of all borrowers at signing.

A real estate document can be rejected if it isn’t correctly notarized. It can lead to a delay in the closing process. Or worst-case scenario, the transaction could fall through, or the notary could face financial or legal liability.

How To Find A Notary Signing Agent

Your lender or title company will typically hire the notary signing agent, but you can also hire an agent.

Notary services are typically available at parcel shipping stores, the AAA, law offices, real estate firms or accountant offices. You can try the National Notary Association or the notary locator from the American Association of Notaries to find a notary signing agent near you.

Before you hire an NSA, check the notary’s credentials. Notary publics and notary signing agents must have a state-issued notary commission and be properly insured, but NSAs must also pass a background check and an annual exam. Some states have restrictions related to real estate documents and may require additional licenses.

Notary Signing Agent FAQs

Still curious about what a notary signing agent is? Let’s review some frequently asked questions about signing agents and their role in real estate.

How much does a notary signing agent cost?

Each state sets its own notary fees. A notary signing agent can charge any fee up to the state’s maximum. You can check notary fees by state on the National Notary Association website.

Can a real estate agent be a notary signing agent?

Yes, a real estate agent can be a certified notary signing agent. In fact, being a licensed real estate agent and a notary signing agent can help grow an agent's business and open more networking opportunities.

A conflict of interest may arise if a real estate agent is involved in the same real estate transaction as the notary signing agent. If you can’t use your real estate agent to witness the signing of the mortgage loan documents, you’ll need to hire another notary signing agent.

What can notary signing agents not do?

During the real estate closing process, a notary signing agent cannot:

• Advise the borrower about the loan
• Offer an opinion to the signer about any information in the closing documents
• Notarize a signature if they have a vested financial interest
• Notarize their own signature

Learn more about signing agent restrictions by state on the National Notary Association website.

How do you become a notary loan signing agent?

To be a notary loan signing agent, you must be a commissioned notary public first. You will also need to take a loan signing training course and pass an exam and background screening to meet compliance requirements.

Several private organizations offer training, certification and background screening for signing agents based on guidelines set by the Signing Professionals Workgroup (SPW), a professional association for notary publics.

Before promoting your services and working, all notary signing agents should carry a minimum $25,000 notary errors and omissions (E&O) insurance policy.

The Bottom Line: A Notary Signing Agent Can Help You Avoid Unnecessary Mistakes

The notary signing agent serves a critical role in ensuring your loan is completed correctly and gets you into your new home.

A real estate closing could be delayed or even fall through without a notary signing agent. Their education and certification ensure they’re working with the utmost professionalism and integrity, allowing borrowers to confidently take advantage of a wide array of convenient and essential services.

More questions about the home buying process? Connect with a Rocket Homes℠ Verified Agent.