Most people see a notary stamp and assume everything is in order.
That assumption can create real risk in real estate transactions, where signatures control ownership rights, mortgages, partnership agreements, and the direction of entire deals.
Notarization is designed to offer protection. A notary is supposed to verify identity, witness a signature, and certify that the document was signed voluntarily. It sounds simple. In practice, it can go sideways in surprising ways.
Below are real scenarios that show how notarization can break down and why caution is paramount.
A Signature She Never Made
One client owned two properties with her husband.
After he passed away, she learned that a mortgage had been placed on one of the properties without her knowledge. When foreclosure began, she saw the paperwork for the first time and immediately said the five words no lawyer ever dismisses lightly:
“That is not my signature.”
Yet the signatures on the mortgage were notarized.
Two possibilities emerged:
- The notary failed to verify identity and simply stamped the document.
- Someone impersonated her, and the notary did not catch it.
In either case, the notary seal became part of the problem rather than the protection.
A Notarized Deed Without a Signature
In another matter, a widow believed her late husband had signed a deed transferring property into both of their names.
When the Deed was produced, it was obvious that the husband never signed it. But it was notarized. The issue wasn’t forgery. It was worse. The deed contained a notary acknowledgment, but no signature that was being notarized.
This was not a subtle oversight. It was a complete breakdown of what notarization is supposed to prevent. A notary had certified a signature that didn’t exist.
Notarization Can Also Protect You
Not all problems arise from bad notarization. In a partnership dispute, notarization would have saved time, stress, and significant cost. The Agreement was witnessed, but the witness was a family member of the non-contesting party and not a notary.
A notary might have gone further toward preventing a contest of the document, which was raised by the contesting party. A notary is bonded and is required to follow certain protocols (which, as we have seen, might not always be followed). A notary is expected to either look at an ID that identifies the signer or has to acknowledge that they know the signer. A witnesses’ acknowledgement does not rise to the same level.
Because the document was not notarized, we had to bring in:
- A handwriting expert
- The witness
- Testimony from the other partner
Had the document been notarized, we could have brought in the notary instead of the handwriting expert. They would have been expected to testify that they knew or had identified the signer, that they saw the signer sign, that the document they were testifying as to was the one they had seen the party or parties sign and that it contained their notarization.
We prevailed, but it took far more effort and far more expenses than necessary. Had the signatures been notarized, the dispute would likely have ended much sooner.
How Notary Failures Happen
Problems tend to fall into three categories:
- Fraudulent or careless notaries
- Failing to check ID
- Not watching the signing
- Notarizing incomplete documents
- Participating in fraud
- Fraudulent signers
- Impersonation
- Presenting false ID
- Relying on a distracted or inexperienced notary
- Sloppy procedures
- Documents signed elsewhere and notarized later
- Acknowledgments that don’t match what occurred
- A notary seal applied in the absence of a signature
Any of these issues can cloud title and spark litigation.
Remote Online Notarization: Helpful, With Limits
Remote online notarization (RON) uses digital identity checks and video verification. It can be valuable when parties are not in the same location, but it comes with drawbacks:
- Higher cost
- More time consuming
- Requires scheduling to allow for the interview and signing.
For many agreements, a careful in-person notary remains the better choice.
Protecting Yourself in Real Estate Transactions
These safeguards go a long way:
- Do not rely on the seal alone. Read the document carefully
- Use reputable notaries who work regularly with real estate documents
- Have partnership or co-ownership agreements notarized at closing
- Raise concerns immediately if something looks off
- Seek legal guidance early if you suspect a problem
Notaries can be excellent gatekeepers, but only when they follow proper procedure.
The Minchella & Associates Difference
With over 40 years of experience in Illinois real estate law, Erica Minchella has represented thousands of home sellers and buyers, landlords, and commercial and investment property owners.
For more information, schedule a consultation today.
