Notary Public Definitions Flashcards
Abstract
A summary of the public records of the title to a piece of land.
Acknowledge
To recognize as one’s own. 2. In the notarial act called an acknowledgment, the document signer recognizes before a Notary that a signature on a document is his or her own and indicates that it was made voluntarily.
Acknowledgment
Notarial act in which a Notary certifies having positively identified a document signer who personally appeared before the Noary and admitted having signed the document freely.
Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically based on an index.
Adjustment Interval
For an adjustable rate mortgage, the time between changes in the interest rate charged.
Administer
To give formally, e.g., “administering” an oath or affirmation.
Administrative Penalty
Action taken against the commission of a Notary Public by the commissioning authority. Penalties may include fines and commission denial, suspension or revocation.
Affiant
- Signer of an affidavit. 2. Taker of an oath or affirmation.
Affidavit
Written statement signed before a Notary (or other authorized official) by a person who swears or affirms the statement is true.
Affirm
To make a solemn promise on one’s own personal honor with no reference to a Supreme Being.
Affirmant, Affirmation - Taker
One who makes an affirmation.
Affirmation
Spoken, solemn promise on one’s personal honor, with no reference to a Supreme Being, that is made before a Notary in relation to a jurat or as a notarial act in its own right.
Age of Majority
Age at which persons can exercise all normal legal rights – varying from 18 to 21 years, depending on state law. Also called “legal age”.
Agent’s Commission
Fee for performing as a representative or advocate on behalf of another person.
AKA
Abbreviation for “also known as”; otherwise named.
All - Purpose Acknowledgment Certificate
Acknowledgment certificate wording that is adaptable to any signer’s representative capacity.
Alteration
Method of creating a false identification document by tampering with a valid ID.
Amortization
Literally to “kill off;” the repayment of a mortgage loan by installments with regular payments to cover the principal and interest.
Annexed
Attached or accompanying.
Annual Percentage rate (APR)
The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance and loan origination fee. The annual percentage rate is often higher than the interest rate for the loan.
Apostille
Authenticating certificate required by the Hague Convention on Authentication that replaces a traditional chain of certificates.
Appointment
Written authorization to perform notarial acts issued by a stat’s Governor, Secretary of State, or other empowering official. Called a “commission” in some states and jurisdictions.
Appraisal
The determination of a home’s market value based on recent sales information of similar properties.
Appraised Value
An opinion of a home’s market value, based on a qualified appraiser’s knowledge, experience and analysis.
Appraiser
A person qualified by education, training, and experience to estimate the value of real and personal property.
Assessed Value
The value placed on a home by a public tax assessor for property tax purposes.
Assessment
the procedure of process of placing a value on real property for property tax purposes.
Assignment
The transfer of a mortgage from one person to another.
Assumable Loan
A loan that may be passed on from a seller of a home to the buyer. The buyer “assumes” all outstanding payments.
Attorney in Fact
Person, not necessarily a lawyer, who is given authoity to sign or act on behalf of another individual (the principal) through a document called a power of attorney.
Authentication
Process of proving the genuineness of the signature.
Authority
Legal empowerment to sign form another person, organization, or legal entity, as the case of an attorney in face, trustee, corporate officer, partner and others.
Awareness
Ability to understand a document’s significance.
Backdate
Deceptive and sometimes illegal act of dating a document with a time before the actual signing or execution.
Background Screening
Under the Interagency Guidelines, background screening of employees with responsibilities for or access to customer information is one of eight suggested security measures that financial institutions must consider and adopt, as appropriate, in their information security program designed to protect the personal financial information of customers.
Balloon Mortgage
Usually a fixed-rate loan that has smaller payments for a certain period of time and one large payment for the remaining amount of the principal at a specified date.
Bankruptcy
A court proceeding in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.
Beneficial Interest
Any advantage, not necessarily financial, that results in an actual or potential gain to a Notary.
Beneficiary
The party designated to receive the income from a Deed of Trust, estae or trust.
Bilingual
Able to read, write and speak two languages.
Biweekly Payment Mortgage
A mortgage that requires payments to reduce the debt every two weeks, instead of the stand monthly payment schedule.
Bond, Notary
Written guarantee that money up to a limit will be paid by a surety to a person financially damaged by a Notary’s misconduct in the event the Notary fails to do so.
Bound Pages
Pages securely fastened together to deter their unauthorized removal or replacement.
Calendar Integrity
The practice of keeping appointments, arriving for appointments on time and, in general, maintaining one’s personal schedule with honesty.
Cap
A set percentage amount by which an adjustable rate mortgage may be adjusted each adjustment period.
Capacity
Specific role of a representative signer – attorney in fact, trustee, corporate officer, partner or other – when signing for another person, organization or legal entity.
Cash-Out Refinance
A refinance transaction in which the amount
Certificate of Authority
Paper stating the signature and seal on an attached document belong to a legitimate Notary or other offical.
Certificate of Prothonotary
Certificate of authorityissued by a prothonotary – the equivalent of a county clerk in some states.
Certificate, Notary
Wording completed, signed and sealed and sealed by a Notary that states the particulars of a notarization and appears at the end of a signed document or on a paper attached to it.
Certificed Copy
Document certified by an official, such as a Notary, ot be an accurate reproduction of an original.
Chain Certification
Traditional authentication procedure that requires sequential attachment of certificates of authority, each validating the genuineness of the preceding one.
Chain of Personal Knowledge
Knowledge of identity linking the Notary with the signer through a credible identifying witness to establish the signer’s identity. The Notary personally knows and can identify the credible witness, and the credible witness personally knows and can identify the document signer.
Chronological
In the sequence of occurrence.
Civil Lawsuit
Legal action taken by a private person, corporation or other legal entity to recover losses caused by a Notary’s alleged misconduct.
Civil Penalty
Payment of funds by a Notary resulting from a lawsuit to recover financial losses that were claimed to have been caused by the Notary’s misconduct.
Clear Title
A title that is free of liens or disputed interests.
Closing
A meeting at which a sale of a property is finalized by the buyer signing mortgage documents and paying closing costs. Also called a “settlement.”
Closing Agent
An individual or firm handling the closing and legal transfer of title and ownership from the seller to the buyer in a real property transaction.
Closing Costs
Fees paid by the borrower when property is purchased or refinanced.
Cloud on Title
Any conditions revealed by a title search that adversely affect the title to a property.
Collateral
An item of value, such as a car or a home, that guarantees the repayment of a loan.
Collections
The process of claiming a payment as due and receiving payment.
Commission Revocation
Voiding the notarial powers of a Notary.
Commission Suspension
Voiding the notarial powers of a Notary for a specific period of time.
Commission
To authorize to perform notarial acts; written authorization to perform notarial acts issued by a state’s Governor, Secretary of State or other empowering official. Called an appointment in some states and jurisdictions.
Community Property
A form of ownership under which property acquired during a marriage is owned jointly.
Common Law
Legal system of English, its former colonies and the United States that evolved out of custom and unwritten law.
Confidentiality
Restricted access to information that is classified, sensitive and personal.
Conformed Copy
Reproduction of an original documetn whose unreproduced parts are filled in on the copy by hand.
Conforming Loan
Generally, a mortgage loan under the maximum dollar amount of loans established by Fannie Mae and Freddie Mac.
Conservator
Guardian; person with the lawful power and duty to manage the affairs of another individual.
Conspiracy
Association of persons to commit a crime; unlawful plot.
Construction Loan
A short-term loan for funding the cost of construction.
Consulate
The office of an official, called a consul, appointed by his or her home country to reside in a foreign nation and care for the interests of that government’s citizens through notarization, authentication of documents and other functions.
Conventional Loan
A mortgage neither insured by the Federal Housing Administration (FHA) nor guaranteed by the U.S. Department of Veterans Affairs (VA).
Conversion
The right of a borrower to convert an adjustable-rate loan or balloon loan into a fixed-rate loan.
Conveyance
Transfer of title or ownership.
Copy Certification by Document Custodian
Alternative to a Notary-certified copy. The custodian of a document signs a declaration that a copy of that document is identical to the original; the Notary uses a jurat to notarize the custodian’s signature on this declaration.
Copy Certification
Notarial act in which a Notary certifies that a copy of a document is a true and accurate reproduction of the original.
Corporate Officer
Agent appointed to act for a corporation.
Corporation
Legal entity with many of the rights of an individual that may own property and sign contracts through its officers and agents.
Counterfeit
False document made from scratch in imitation of an authentic one, in contrast to a false document made by altering an existing authentic document.
County Auditor
County recorder, in some states.
County Clerk
Official whose duties may include keeping a file of the bonds and signed oaths of office of Notaries and accepting custody of journals surrendered by those Notaries upon retirement. See also “Prothonotary”.
County Recorder
Official who registers deeds and certain other documents in the public record.
Court Reporter
Person whose training in stenography qualifies him or her to transcribe spoken words into such form as a deposition.
Credible Identifying Witness
Person who identifies a document signer to the Notary after taking an oath or affirmation. The credible identifying witness should know the document signer personally and also should be personally known by the Notary.
Credible Witness
Credible identifying witness.
Credit Report
A report documenting the credit history and current credit standing, including late payments, defaults or bankruptcies.
Crime
Law violation punishable, in the case of a misdemeanor, by a fine and/or confinement in a jail; or, in the case of a felony, usually by confinement in a penitentiary.
Criminal Penalty
Action taken against a person for violation of a criminal law. Penalties generally include fines and/or imprisonment.
Custodian
Keeper of a document.
Custodian/Certified Copy
Document verified to be an accurate reproduction of an original by the original’s permanent custodian.
Customer Identification Program (CIP)
Under the USA PATRIOT Act, financial institutions must establish a CIP to identify all new account holders, maintain account holder identification information and check this information against lists of known terrorist or terrorist agencies provided by the government.
Date of Documents
Date of signing or, in the case of multiple signers, of the most recent or final signing.
Deed of Trust
A legal instrument pledging a property to a neutral third party as security for payment of a debt. The document used in some states instead of a Mortgage.
Deed
The legal document that conveys title to real property.
Default
Failure to meet legal obligations in an agreement, including the failure to make the monthly payments on a mortgage loan.
Defendant
Person accused of causing damages and from whom compensation is sought in a lawsuit.
Deponent
Person who, under oath or affirmation, gives oral testimony that is transcribed for use in legal proceeding.
Depose
To make a deposition; to testify under oath or affirmation orally or in writing.
Deposition
Written statement used in a lawsuit that is transcribed from words spoken by a person (deponent) under oath or affirmation and that is usually signed by this person.
Direct Work
A loan document signing assignment received through a lender, broker, or closing agent without going through a middleman.
Disability
Physical, intellectual, or legal condition rendering one incapable of performing certain functions such as writing, communicating and handling one’s own affairs.
Discretion
Freedom to act or judge on one’s own; freedom of choice.
Dishonor
Refusal to pay the sum of money promised or requested.
Disqualifying Interest
Advantage or potential advantage resulting in ineligibility to perform a notarial act.
Document Custodian
Permanent keeper of an original document.
Down Payment
The difference between the purchase price and that portion of the purchase price being financed.
Duress
Compulsion, coercion or threat of injury to force compliance.
Easement
A right of way giving persons other than the owner access to or over a property.
Emancipated Minor
Person under the age of majority who has been freed from the control and responsibility of his or her parents.
Embosser Seal
Plier- or press-like device that imprints a raised image into a paper surface to form a notarial seal.
Encumbrance
Anything that affects or limits the fee simple to title to a property, such as mortgages, leases, easements or restrictions.
Endorsement
Public expression of approval.
Equity
The difference between the fair market value of real estate and any outstanding mortgage loan(s) against the property.
Errors and Omissions Insurance
Contract between a Notary and an indemnity company whereby, in the event of a lawsuit against the Notary resulting from certain acts in performing a notarization, the insurance company absorbs the Notary’s costs and financial liabilities up to an agreed limit.
Escrow Company
Neutral third party that handles all funds in a real estate transaction. Escrow pays the real estate broker’s commission, pays off any loans or liens against the property, pays real estate taxes and any other fees associated with the transaction and sends the balance of the money to the seller.
Ethics
Principles of good conduct; moral values.
Fair and Accurate Credit Transactions (FACT) Act of 2003
A federal law which enables consumers to request and obtain a free credit report once every twelve months from each of the three nation wide consumer credit reporting companies. The FACTA also contains provisions to help reduce identity theft.
Fair Market Value
The highest price a buyer, willing but not compelled to buy, would pay; and the lowest a seller, willing but not compelled to sell, would accept.
False Certificate
Notarial wording that contains incorrect information.
Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac)
A stockholder-owned corporation chartered by Congress to create a continuous flow of funds to lenders to support homeownership and rental housing.
Federal Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage.
Federal National Mortgage Corporation (FNMC, Fannie Mae)
A congressionally chartered, shareholder-owned company that is the nation’s largest supplier of home mortgage funds.
Federal Register
A daily publication of the United States Government that provides notice to the public of a federal government agency’s proposed new or amended rules.
Fee Simple
A term used to describe the most complete ownership that a person can have over a property.
Felony
A serious crime typically imposing the punishment of imprisonment, fine or both.
FHA Mortgage
A mortgage that is insured by the Federal Housing Administration (FHA).
Finance Charge
The total dollar amount a loan costs the borrower.
Financial Interest
Monetary consideration of benefit to the Notary which would limit the Notary’s impartiality to perform a notarial act.
First Mortgage
A mortgage that is the primary lien against a property.
Fixed-Rate Mortgage
A mortgage where the interest rate does not change for the life of the loan.
Foreclosure
The act of enforcing payment of a debt secured by a Mortgage or Deed of Trust by depriving the owner of its possession and selling the property.
Foregoing
Preceding.
Forgery
False signature, writing, document or other creation made to imitate a genuine thing; the act of making such a false creation.
Fraud
Deception aimed at causing a person unknowingly to surrender money, property, rights or advantages without compensation.
Fraudulent
Deliberately falso or deceptive.
FSBO
For sale by owner.
Gramm-Leach-Bliley Financial Services Modernization Act (GLBA) of 1999
A federal law enacted to protect the privacy of customer information held by financial institutions.
Grantee
The person to whom an interest in real property is conveyed.
Grantor
The person conveying an interest in real property.
Guardian
Person with the lawful power and duty to manage the affairs of another individual; conservator.
Hague Convention
Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents is a treaty signed by more than 80 nations, including the United States, that simplifies authentication of notarized documents sent between nations.
Hand
Signature.
Hazard Insurance
A form of insurance that protects the insured from certain losses, such as fire, vandalism, storms and certain other natural causes.
Holographic
Handwritten.
Homestead
A legal form signed by the owner to exempt property used as a home from forced sale to settle a judgment.
HUD-! Settlement Statement
A document that provides an itemized listing of the funds that are payable at closing.
HUD
The U.S. Department of Housing and Urban Development.
Identification Document (ID Card)
Document or card that establishes the bearer’s identity. Examples include passports, driver’s licenses and nondriver’s IDs.
Identification
Knowing who a person is without doubt or suspicion; positive identification.
Illiteracy
Inability to read and write.
Immigration Consultant
One who advises and assist another in the legal process of immigrating to the United States, especially in preparing the necessary paperwork. Also called an immigration specialist, immigration expert and immigration counselor.
Immigration
Entering a country to become a legal resident, whether permanent or temporary.
Impartial Witness
Observer without bias; one who has no financial or beneficial interest in the transaction.
Impersonation
Acting as a Notary Public without a valid commission.
Impostor
Person with a false identity.
Imposture
Pretending to have another identity.
Impounds
That portion of a borrower’s monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments and other items as they become due.
Improper Influence
The act of attempting to influence a person to sign or not to sign, act or not to act or to proceed or not proceed in any lawful transaction requiring a notarial act.
Independent Contractor
A person who earns a livelihood other than as a salaried employee.
Independent Contractor’s Agreement
An agreement defining the business relationship between a signing service or a closing agency and a Notary Signing Agent.
Index
A published interest rate not controlled by the leader to which the interest rate on an Adjustable Rate Mortgage (ARM) is tied.
Information Security Program
A main component of the GLBA that financial institutions must implement to ensure the privacy of the personal financial information of customers.
Inking Seal
Device that imprints ink on paper to form a photocopiable notarial seal.
Installment
The regular periodic mortgage payment a borrower pays to a lender. Installments can be made either monthly or biweekly.
Instrument
Document.
Intellectual Disablility
Mental condition, resulting either from lack of education (illiteracy) or intellectual incapacity, that can make signing or understanding a document impossible.
Interagency Guidelines
Joint rules and standards promulgated in 2001 by the Office of the Comptroller of the Currency, Department of the Treasury; Board of Governors of the Federal Reserve System; Federal Deposit Insurance Corporation (FDIC); Office of Thrift Supervision (OTS), Department of the Treasury; National Credit Union Administration; the Securities and Exchange Commission and the Federal Trade Commission to implement the Gramm-Leach-Bliley Act.
Interest Rate
The periodic charge, expressed as a percentage, for use of credit.
Interpreter
Person who explains or translates orally for parties conversing in a different language.
Invoice
An itemized list of services a Notary SIgning Agent renders to a closing agent, lender or signing service for payment of services.
IRS Form 1040 Schedule C (or C-EZ)
Attachment to an individual’s federal income tax return in which the totals for income and expenses receive frmo self-employment appear.
IRS Form 1040 Schedule SE
Attachment to an individual’s federal income tax return in which the individual figures the smount due for self-employment taxes.
IRS Form 1099-MISC
A federal income tax form received by a Notary SIgning Agent who has earned $600 or more in income from a closing agent, lender, or signing service for provding loan document signing services.
Joint Tenancy
A form of co-ownership giving each tenant equal interest and equal rights in the property, including the right of survivorship.
Journal of Notarial Acts
Detailed, chronological record of the official acts of a Notary Public.
Journal Shortcuts
Methods for speedily entering information in the Notary’s journal.
Judicial Official
Public officer who uses considerable judgment or discretion in the performance of official duties.
Jumbo Loan
A loan that exceeds Fannie Mae’s mortgage amount limits. Also called a “non-conforming” loan.
Jurat
Notarial act in which a Notary certifies having whached the signing of a document and having administered an oath or affirmation in which the signer declares the document to be truthful and accurate.
Jurisdiction
Geographic area in which a Notary is authorized to perform notarial acts.
L. S.
Abbreviation of the Latin term locus sigilli, meaning “place of the sear.” Traditional element marking where the seal imprint is to be placed.
Legal Age
Age of majority.
Legal Description
A property desciption, recognized by law, sufficient enough to locate and identify the property without oral testimony.
Legal Disability
Legal status, including being under legal age or proven legally insane, that can restrict or disqualify persons from signing on their own behaves.
Legalization
Authentication
Lender
The bank, mortgage company or mortgage banker that originates a loan and lends money.
Liability
Obligation to suffer the penalties for misconduct.
Lien
A voluntary or involuntary encumbrance
Line of Credit
An agreement by a financial institution to extend credit up to a certain amount for a certain time to a specified borrower.
Loan-to-Value Ratio
The relationship between the amount of the mortgage loan and the sales price or appraised value of the property expressed as a percentage.
Lock-in
A written agreement guaranteeing the homebuyer a specified interest rate provided the loan is closed within a set period of time.
Loose Certificate
Notary certificate wording on a separate sheet of paper that is attached to a document when no Notary wording or incorrect Noatry wording is present.
Margin
An amount, usually a percentae, which is added to the index to determine the interest rate for adjustable rate mortages.
