Notarial Procedures

Question 1

What are the three types of Bills?

Answer 1

1) Government-
2) Member- opposing party
3) Private- not in benefit for either party

Question 2

Steps for Processing Government Bills

Answer 2

First Reading
Second Reading
Committee 
Report
Third Reading 
royal assent

pg. 21

Question 3

4.01 Trust Accounting Rule

how is money in a trust account segregated?

Answer 3

• segregate trust account $ from personal $
• segregate money from executorships
• segregate each clients money in the trust account
• show an adequate record of in’s and out’s

Question 4

4.02 every notary must maintain at least one:

Answer 4

EVERY notary must maintain at least one trust account. Exceptions to this rule would be a roving notary, a notary acting as an employee of another notary, a notary firm or partnership or a notary who has not yet commenced practice.

• 1 month file a notice to the society making them aware of the new trust account
• pay interest to the society from said trust account
• file an annual report with each bank to ensure CDIC 100 thousand insurance for each client
• no notary shall pay themselves executor fees unless there is a fee agreement, court order or beneficiaries ok.

Question 5

rule 4.03 How much can be deposited to a trust account, and if over how must it be deposited?

Answer 5

no more than $2500 can be deposited in a trust account unless its a bank draft, certified cheques or trust cheques from another notary, or electronic funds transfer

Question 6

rule 4.04 can you pay out monies without it clearing your trust account?

Answer 6

NO, all cheques must be cleared through trust account before passed on.

Question 7

rule 4.05 when must all monies be paid to a trust account?

Answer 7

must pay all monies into trust account out at the latest by the NEXT banking day. Unless it is a mortgage as it cannot be paid out until closing.

Question 8

4.06 how long can you wait to log trust account transactions?

Answer 8

must post/log all transactions in trust accounts no longer than 1 week after the transaction

Question 9

4.07, all trust accounts can only be signed by?

Answer 9

all trust accounts must be signed by the notary, no rubber stamps, and only on behalf of the notary if POA and a law society or Notary society member in good standing

Question 10

4.08 Trust accounts must show?

Answer 10

all banking documents must show

• that the account is a trust account and all cheques other than for fees must be made payable ‘in trust’.
• Cheques must clearly indicate that they are drawn on a trust account.

Question 11

4.09 No money Shall be withdrawn from a trust account except:

Answer 11

• payable to client or on their behalf
• pay member for services
• refund because it was paid to account by mistake
• must retain a copy of all withdrawals for records, PTT return, Transaction receipts

Question 12

4.10: when transferring funds from a trust account to a general account you must:

Answer 12

• All transfers from a trust account to a general account must be for specified clients and for specified amounts. Estimated expenditures and allowances for contingencies are not permitted.
• the transfer to general account for fees and disbursement’s must be done no later than 30 days after the transaction
• can only keep a 500$ balance in a trust account for incidentals

Question 13

4.11: Withdrawal of clients funds for registration can only be done with?

Answer 13

a signed form of consent from the client via signing statement of adjustments, PTT form etc.

Question 14

4.12: Can you withdraw fees and disbursements from a trust account?

Answer 14

Yes, but again only with consent form the client via signed statement of adjustments

Question 15

4.13: sufficient funds in trust accounts:

Answer 15

a member must maintain sufficient funds in all trust accounts to meet the obligations of the trusts within each of the accounts. (not sufficient that shortages in one client trust account are offset by balances in another)
• must notify the Society if the obligation cannot be met for any reason.
• Gross trust Liability includes individual trust deposits not included in pooled trust accounts plus interest accrued on these deposits. Interest is accrued monthly and shown as a receivable to the trust
• must make good any shortage in a client’s trust account upon discovery of the shortage
- shortage is greater than $5,000 the notary must also report to the society.

Question 16

4.14: reconciliations are required when? How long should they be kept?

Answer 16

Reconciliation of Gross Trust Liability and pooled trust accounts are required monthly whether or not transactions occur within an account within the month.
must be kept for 3 years

Question 17

4.15:

Answer 17

all funds must be cleared through trust account

Question 18

4.16: if a member cannot deliver on the trust account funds when due must:

Answer 18

report in writing to the secretary of the society

Question 19

4.17: any transfers to a different trust account must be:

Answer 19

• Authorized in writing by client
• any transfers to and from pooled trust account must be authorized by Notary in writing
• the amount transferred back in to the pooled trust account is inclusive of interest earned

Question 20

4.18: are funds in general accounts that are paid o behalf of clients are still trust funds?

Answer 20

• disbursements for clients have to be remitted when due

- items paid from general accounts are client funds and hence trust funds and must be paid promptly

Question 21

4.19: left over trust funds

Answer 21

If there is an amount left over and cannot locate the client in more than 2 years the amount must be paid to the society with all the information.
any outstanding monies in trust account must be properly reconciled to show the balance each month for the length of the balance.

Question 22

4.20: When can an audit of trust accounts be done?

Answer 22

An audit can be done anytime, this section gives wide reaching authority for the audit of all trust account matters and compels the notary to make available all books and records required for the audit.

Question 23

4.21: audit infractions

Answer 23

• if the notaries books do not comply the
• notary will be responsible for the cost
  if there are infractions they are 1000.00 per infraction

Question 24

4.22: self audit

Answer 24

must be completed by each notary at the beginning of may each year.

Question 25

4.23: Audit information must:

Answer 25

Be made available at the request of the auditor. Any information and records the auditor requests.

Question 26

4.24:

Answer 26

Provides for resolution of any contraventions of the Act, the Bylaws or Rules respecting the auditor’s report.

Question 27

4.25: if a self audit report is not filed

Answer 27

• the member will be fined and suspended if the fine is not paid within 30 days
• the member will be terminated if they do not pay the fine and file past July 1

Question 28

4.26: each month each member must deliver what to the secretary?

Answer 28

• deliver a completed Trust Administration Fee Remittance Form on or before the last day of the month following the month of remittance declaring the total number of trust transactions which they received funds
• trust fund fee per transaction is 15.00

Question 29

4.27: A member’s audit report must receive a mark of ….. to pass?

Answer 29

Satisfactory, if they receive an unsatisfactory a re-audit is done at their expense. if the member receives 2 unsatisfactory marks in a row it does to the discipline committee.

Question 30

Statutory Declaration is?

Answer 30

When are used to allow a person to declare something is true to satisfy a legal requirement.
Example:
To Wit,
I, Jeff Smith, Businessman of 123 Martin Street, Penticton BC do SOLEMLY DECLARE THAT,
- I am the authorized person on account # 123455
- I did not authorize a withdrawal of $2000
I made this solemn declaration believing it to be true and knowing it is the same force and effect under oath.
Put in Jurat

Question 31

What is a Jurat?

Answer 31

clause appearing at the end of an affidavit or Stat. Dec. stating when, where and before whom it is sworn.
Example:
Sworn before me, on the 2nd day of July, 2015
Jenn OD
A notary Public for the Province of bc

Question 32

What is an Affidavit?

Answer 32

An Affidavit is an affirmation of a statement of fact.
Example:
Affidavit,
I, Jeff Smith, A businessman of 123 Martin Street Penticton BC, make an oath, or solemnly affirm that:
- I am the sole owners of bank account 1234
- I did not authorize any withdrawals
put Jurat at the end.

Question 33

What is a certificate of Identity and who may apply?

Answer 33

Travel document issued to a landed immigrant
who may apply: a person residing in Canada but not a legal citizen, who for political or other reasons is unable to obtain a valid passport from the government in the country of origin.

Question 34

When should a document be signed as a commissioner?

Answer 34

on a document or matters pertaining to BC

Question 35

When should a document be signed as a Notary?

Answer 35

On documents on matters pertaining outside BC

best practice is to sign as a notary under seal unless otherwise instructed by the form.

Question 36

When sending a Stat. Dec to Quebec, US, and all other Countries what is the authentication process?

Answer 36

First it goes to the society for authentication, and then if further authentication must go to Victoria and must authenticated by the Attorney General.

Question 37

What is Notary Negligence?

Answer 37

is the conduct that departs from the conduct of a competent notary

Question 38

Describe the Notaries Act, what does it do, how can it be changed?

Answer 38

The Notaries Act sets out what Notaries can do, and the common law decisions made based on the act by the court can limit powers.
- can only be changed by the government through - 1st reading, 2nd reading, committee, report, 3rd reading, royal ascent.

Question 39

Describe the Notaries Constitution and Bylaws, what does it do, how can it be changed?

Answer 39

Bylaws are how you go about doing notarial work. The bylaws can be changed through the society members with a % vote and the acceptance and approval of the Attorney General.

Question 40

What is PEPC: Principles for Ethics and Professional Conduct, what does it do and how can it be changed?

Answer 40

PEPC contains the oath of a notary, and guides the conduct of members.
An ethical principle often related to a rule. The Code of conduct can be changed by the society.

Question 41

What are the Society Regulations, what do they do and how can they be changed.

Answer 41

Regulations flow with the Notaries Act, but are more broad and explain the rules in action.
They can be changed by the government however, it is easier and more applicable to amend the regulations rather than change the act.

Question 42

What are the Society Rules, what do they do and how can they be changed?

Answer 42

The purpose of the rules are to govern what a notary must do, and how to become a notary. The guidelines make the powers and applies a set of parameters for the protection of the public.
Need powers to make rules.
The rules can be amended by the board of directors by the recommendations by committees.

Question 43

What is the name given the agreement for sale when it appears on title?

Answer 43

RP - right to purchase, and is registered as a charge on title