At one point or another, you may find yourself in need of a power of attorney. When that time comes, you may have some questions. What is a power of attorney? When do I need one? How do I get one? To make matters more complex, there are, in fact, different types of power of attornies. In this article, we will cover everything from the curious durable power of attorney to the perplexing medical power of attorney.

What is Power of Attorney?

Before we dive into the specifics of a durable power of attorney (POA), let’s learn about a standard power of attorney. First of all, a power of attorney is not a person, but a document. A properly executed POA will legally give another person the right to act on your behalf. Powers of attorney are accepted nationwide. However, specific rules and requirements vary from state to state.

The person selected to act on your behalf is referred to as your “agent” or “attorney-in-fact”. Whoever is granting the POA, is the “principal”. A power of attorney has levels. For example, say you are selling a car and are unable to be present at the time of the transaction. Boom! A power of attorney can solve this problem. You will be able to legally give someone you trust the legal right to sign off on the sale. On the other hand, a POA can give someone absolute power in decision making. This tends to be a common choice in medical situations. Particularly in the event that someone cannot make their own decisions, from a physical or mental standpoint. A POA can last indefinitely, or for a pre-determined amount of time.

What is a Durable Power of Attorney?

Prior to the establishment of a durable power of attorney, there were four cases in which POA would be considered null and void:

1. You, the principal, choose to revoke the POA
2. The POA surpasses its pre-determined expiration date
3. Death of the principal
4. If the principal loses their mental capacity or becomes incapacitated

However, with the establishment of a durable POA, only three of those cases would cancel the power of attorney.  If you select to draft a durable power of attorney, the document will remain legally valid even after the principal is deemed mentally incompetent.

Define Incompetent

Legally speaking, mental incompetence occurs when a person is mentally unable to make informed decisions. Additionally, this definition also includes instances where a person is physically incapable of communicating decisions.

A common example of incompetence is mental illness. Unfortunately, mental illness can sometimes be tricky to define and prove.  Lawyers and doctors may have to get involved.

To clarify, a person should not be considered mentally incompetent simply for disagreeing with you. POA’s are involved in situations dealing with the exchange of money and/or power. Therefore, sometimes greedy people jump at the opportunity to deem a principal unfit to manage their affairs.

Furthermore, people can be deemed incompetent for more physical reasons. Such as injury, disease, comas, or unconsciousness.

Types of Power of Attorney

Hooray! We now know what a durable power of attorney is. However, that is just the tip of the POA iceberg. There three other types of power of attorney: limited, medical, and springing.

1) Medical Power of Attorney

Medical and financial reasons are typically involved in POAs. So naturally, you can draft a power of attorney based solely in medical need.  A medical POA may also be referred to as a healthcare power of attorney, or a durable power of attorney for healthcare. Therefore, the medical power of attorney is also considered a durable POA by nature. A medical power of attorney gives the agent the right to make medical decisions on behalf of the principal. Specifically, in the event the principal is medically considered unable to make their own decisions. For example, if the principal is in a coma.

Medical Power of Attorney vs. Living Will

As morbid as it may sound, it is a good idea, at any age, to consider drafting a living will. Don’t worry, you do not need to go around your house putting sticky notes with family members names on furniture. The purpose of a living will is not to assign post-mortem ownership of your assets. Instead, a living will detail your medical desires should you become incapacitated. Accidents happen. You and your loved ones can avoid certain legal and medical drama by being prepared. A living will is also be referred to as a healthcare directive, advanced directive, or an advanced medical directive.

In a living will, you will detail your medical preferences in the event of certain trauma. A common example is when an accident results in a person being braindead. For many people, this state of “life” is not living at all. Therefore, they may make the choice to state in a living will that they would want their family members to “pull the plug”.

A living will is more limited in scope than a healthcare power of attorney. However, it is not uncommon for people to have a living will and a medical power of attorney.

2) Springing Power of Attorney

A springing power of attorney, as the name suggests, is designed to “spring” into effect upon the meeting of predetermined circumstances. You may also hear a springing POA referred to as “conditional”. This type of POA works in tandem with general or healthcare power of attornies.

Commonly, this type of POA is used in the event that the principal is deemed mentally unfit. Although, a springing POA can be used in a number of other situations. For example, active military men and women often choose to utilize a springing power of attorney form. Therefore, in the event of deployment, their spouse or relative can have the ability to access and control necessary finances while they are away.

3) Limited Power of Attorney

It should come as no surprise that a limited power of attorney limits the power of the agent. The principal will detail with great specificity the authority the agent will have. Often times, the principal will use a limited POA for the agent to carry out a specific task. For instance, in the event of a transaction where the principal cannot be present to sign a contract. Furthermore, a principal may grant a trusted investment adviser limited power of attorney to make portfolio decisions.

In addition to finite power, a limited POA is likely to have an expiration date. Moreover, a limited power of attorney form can include a revocation clause. Therefore, giving the principal the opportunity to void the POA at any time.

Power of Attorney Form

Specifics of POA forms vary from state to state. Additionally, the language in the document depends on the type (see above) of POA drafted. However, some basic elements in a POA are:

• Date of execution
• The signature of the principal (or a witness chosen by the principal who signs in their presence)
• A proper notarization

Furthermore, a proper POA will typically list the powers afforded to the agent. Some transactions where the principal may utilize an agent may include:

• Buying or selling property (such as cars or houses)
• Various financial decisions (banking, managing investments, taxes)
• Insurance matters
• Legal business
• Estate planning
• Matters pertaining to business operations
• Personal affairs (social security, retirement, family matters)
• Medical decisions

Naturally, this list just skims the surface. Be sure to consult your lawyer before drafting a power of attorney. Anyone can download a POA form online, but you want to be sure you have the appropriate language to deal with your specific matters appropriately.

Durable Power of Attorney Form

Specific language is required for a POA to be considered durable. The specifics of this language may vary based on state law. To reiterate, a durable power of attorney remains effective no matter the mental competence of the principal.

There are two general types of language that can make a power of attorney durable. The difference lies in the moment of effectiveness.

1. Immediate effectiveness – “This power of attorney shall not be affected by my subsequent disability, incapacity, or incompetence.”
2. Effective only in the event of mental incompetence – “This power of attorney shall become effective upon the date of my disability, incapacity, or incompetence.” (this language is also indicative of a springing POA)

Remember, specific verbiage and other necessary requirements may differ by state. Be sure to check with your local lawyer to draft a proper POA for your state and situation.

How to Choose an Agent

Choosing a suitable agent is vital in the POA process. This is an incredibly important role. An agent has immense power. The amount of said power is, however, entirely up to the principal to dictate.

Things to ask yourself when selecting an agent:

• Do you trust this person with valuable financial information?
• Will this person be able to manage this responsibility? Be sure to discuss your offer with them, as opposed to simply assigning it to someone
• Do you trust this person to handle your legal affairs wisely?
• How does this person manage financial and legal matters of their own? This can be a good indication of their ability to wisely (or poorly) handle yours

Keep in mind that an agent is typically a spouse, parent, or family member. However, in certain matters, you may hire a lawyer or an accountant to act as your agent. Therefore, you may have to pay them a fee for this service.

Additionally, it may be a good idea to have a second agent on your POA. This decision can be helpful in the event your original agent can no longer perform their duties (be it from illness, death, or refusal to do so).

Power of Attorney Fraud

Cleary, POA’s are incredibly influential legal documents. Giving someone the ability to legally make decisions on your behalf is a big leap of faith. Unfortunately, sometimes that leap turns into a hard fall. Sadly, power of attorney fraud is a not-so-uncommon issue. Financial abuse and identity theft are common examples of POA fraud. Evan’s Law specializes in fraud cases and details several examples of power of attorney fraud.

Signs of Power of Attorney Fraud

The best way to prevent POA fraud is by assigning someone you fully trust as your agent. However, it is useful to know the signs of power of attorney fraud. Such as:

• Hesitation to communicate by the agent
• Reluctance or refusal for the agent to share financial records with the principal
• Sudden changes bank accounts, finances, or other personal matters
• Pushy or demanding behavior from the agent (especially in regards to signing something)

If you are experiencing any of the aforementioned red flags, terminate your POA immediately. Remember, as the principal you have the power to retract the POA at any time.

Power of Attorney by State

As previously mentioned, POA rules and regulations can vary from state to state. For your convenience, we have listed a few states below as examples. If your state is not listed, US Legal provides a helpful breakdown of the power of attorney rules by state.

Power of Attorney California

In California, the principal must be at least 18 years old and of sound mind in order to legally sign off on a power of attorney. In matters pertaining to finances, the principal must sign in the presence of a notary, or at least two witnesses. Regarding real estate transactions, notarization is mandatory. Two witness signatures are required on medical POAs. However, the witnesses cannot be your healthcare provider or their employees, nor your agent.

The specifics of California power of attorney laws can be found in the California Probate Code.

Power of Attorney Texas

Any legal adult (18+) can have a power of attorney in the state of Texas. According to Legal Zoom, the Texas state-mandated power of attorney language is as follows:

• For an immediately effective durable POA: “This power of attorney is not affected by subsequent disability or incapacity of the principal.”
• For a springing durable POA: “This power of attorney becomes effective on the disability or incapacity of the principal.”

Furthermore, the Texas legislature provides state-approved power of attorney forms online. Using these pre-approved forms will make your POA more official in the eyes of the state. Finally, notarization will make the POA official.

Power of Attorney Florida

It can be quite tricky to get a power of attorney in Florida. Unlike most other states, Florida does not accept provide a state financial POA or accept springing POAs.

If you desire a durable POA, the following language is required:

• “This durable power of attorney is not terminated by subsequent incapacity of the principal except as provided in Chapter 709, Florida Statutes”

We have established the terms “healthcare power of attorney” and “medical power of attorney” earlier in this article. In Florida, however, these documents are called a “Designation of Health Care Surrogate”. Special requirements for this type of Florida POA are detailed in Florida Statutes.

A power of attorney must be signed by two witnesses and a notary to be official in Florida.

All legal specifications can be found in the Florida Power of Attorney Act.

What is a Notarization?

Power of attorney laws and regulations clearly vary greatly across the nation. However, whether or not your state requires it, you should get any and all POA documents notarized. If you are unfamiliar with that term, a notarization is when an unbias third party witnesses the signing of important documents. The purpose of notarization is to prevent fraud and make documents more official in the eyes of the state. A notary is a person who witnesses signatures. Notaries are official representatives of the secretary of state.

Steps of a Notoriztion

What happens exactly during a notarization? Like POAs, there are different types of notarizations, with different rules across the country. However, most notarizations involve the following steps:

1. Identification – The foundational element of notarization is properly identifying the signer. The notary will ask you for an accurate photo i.d. The most widely accepted forms of i.d. are a valid drivers license or passport
2. Understanding and Consent – Once the notary has confirmed your identity, they will ask you if you understand the document in full and are choosing to sign at your own free will
3. Signing – Some states do not require the actual signing to occur in the presence of the notary. However, it is a good idea to wait to sign your document in front of the notary. Better safe than sorry!
4. Notary Journal – Specifics of this will vary by state, but essentially the notary will document the transaction in their notary journal. Some notaries may require that you sign and stamp a thumbprint in the journal for their records
5. Notary Stamp – The final and official mark of a proper notarization is a seal (or stamp) on the document. These stamps vary in appearance, but should all include the notary’s name, state of certification, and date of expiration

Be sure to check with your local secretary of states office about the rules of your state.

Where to Locate a Notary

Fortunately, there are millions of notaries easily available nationwide. Hours, pricing, and availability are dependent entirely on where you live. Some ideas of where to start your search:

• Public library – Your local library houses more than literature! That’s right, you can often find free or affordable notary services at the public library
• Local government offices – Your city or town hall, courthouse, or county clerks office will likely have a notary available for public use
• Financial Institutions – If you have an account at a bank, you may qualify for complimentary notary services. Otherwise, smaller banks and local credit unions typically offer a notary at an affordable rate
• Your workplace – Many larger companies require the services of a notary regularly, so they keep one on staff! Talk about work perks!
• Car dealerships, real estate offices, and insurance agencies – Check with your local businesses about their notary pricing and availability
• Mobile Notary – These days, anything can get delivered to your door – and a notary is no exception! Skip the traffic and have a notary come to you. This is a very convenient option for people living in thriving cities, with little spare time.

Clearly, you should have no trouble finding a notary near you. However, save yourself time by doing research on your areas pricing and availability.

Notary vs. Attorney

It is important to understand that a notary is not an attorney. Notaries cannot give legal advice to their clients. Therefore, a notary cannot explain the content of the document to the client. Notarization does not validate the legality of the contents of a document.

A power of attorney is a very influential legal document. You should strongly consider having a lawyer look over yours. Moreover, you should have your lawyer translate the document to you. Legal jargon is notoriously confusing. It is imperative that you understand any document that you are signing.

Durable Power of Attorney: In Conclusion

In America, we are fortunate enough to have the ability to exercise free will and make our own decisions. Having a durable power of attorney is often necessary, but should be executed with great care. Transferring your power to make important medical, financial, and personal decisions should not be taken lightly. Keep in mind that laws and regulations vary widely depending on your state of residence. Consult a trusted lawyer in your area to determine the best type of POA for you and your situation.

Sources

https://www.legalzoom.com/articles/what-is-a-durable-power-of-attorney

https://ctlawhelp.org/en/power-of-attorney

https://www.legalzoom.com/articles/power-of-attorney-requirements-in-california

http://www.caregiverslibrary.org/caregivers-resources/grp-legal-matters/hsgrp-power-of-attorney-guardianship/what-is-power-of-attorney-article.aspx

https://www.nationalnotary.org/knowledge-center/about-notaries/what-is-notarization

https://www.nationalnotary.org/notary-bulletin/blog/2015/04/5-steps-proper-notarization

https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/power_of_attorney/

https://www.nationalnotary.org/knowledge-center/about-notaries

https://www.thebalanceeveryday.com/where-to-notarize-affidavit-896914

https://www.legalzoom.com/articles/power-of-attorney-requirements-in-florida

https://www.rocketlawyer.com/article/when-to-use-a-springing-power-of-attorney-.rl

https://www.evanslaw.com/practice-areas/financial-elder-abuse/power-of-attorney-fraud/

https://www.legalzoom.com/articles/what-is-a-medical-power-of-attorney-form

https://info.legalzoom.com/definition-limited-power-attorney-20259.html

https://help.legalnature.com/articles/the-basics-power-of-attorney

https://www.legalzoom.com/articles/power-of-attorney-requirements-in-texas

https://www.rocketlawyer.com/article/how-to-choose-an-agent-for-your-power-of-attorney.rl

Legal documents are famously drenched in confusing jargon. It is not uncommon for some of the lingo to be puzzlingly similar. Guarantee, guaranty, guarantor come to mind. What is the difference between these words? How to do they affect the legality of my document? Consider this article your comprehensive guide to all the iterations of the legal term guaranty.

What is Guaranty?

Legally speaking, a guaranty is a formal agreement between two parties used when money or services has exchanged hands. A guaranty is a contract outlining a promise from one party to either pay a debt or perform a service or duty as promised. Specifically, a guaranty is a promise to fulfill the duties of another in the event that fail to do so.

A guaranty is often drafted after several attempts have been made to receive outstanding payments or services.

When Would I Use a Guaranty?

To reiterate, a guaranty is often a promise to execute the unfulfilled duties of another party. The most common example of this is when someone cosigns for something. For example, if a student is applying for a loan for college tuition. They will likely need a parent or guardian to cosign it for them. Additionally, when someone buys a car, rents an apartment, or opens a credit card, they may be required to have someone cosign for them.

Someone may need a co-signer in the following instances:

• They have a poor credit score (or they don’t have any credit at all)
• Not meeting a minimum income requirement
• Having a poor debt-to-income ratio (i.e. they are making less money than they currently owe already)
• They are self-employed and/or have an irregular stream of income
• Being between jobs or unemployed

Whoever cosigns a transaction will sign a guaranty that they will take over the financial responsibility promised in the event that the primary can no longer do so.

Things to Consider before Cosigning

It is important to understand the financial risks involved with cosigning on a loan. Below are some things to consider before you cosign.

Why they Need a Co-signer

When someone asks you to cosign a loan, it is because they do not qualify by themselves. Sometimes, this could just be because your child does not have a credit history yet. Therefore, you can help them start one and set them up for future financial success. On the other hand, if an older friend or relative seeks you out as a co-signer, be sure to do your due diligence. Do they make enough money to cover the payments themselves? Are they trustworthy enough to make the payments? Do they put more money on a credit card than towards paying off debts? The bank or lending institution is requiring a co-signer because they do not trust the client has the ability to pay on their own.

No Personal Benefit

Whatever you are cosigning on is often of no benefit to you personally. The primary party will live in the apartment, buy groceries with the credit card, or drive the vehicle they are buying. The primary benefit to you would be the satisfaction that you are helping someone you love. Which is a great reason! Just keep in mind what is at stake for you, financially speaking.

Co-signing Affects Your Credit Score

In the eyes of a bank, a co-signer is just as responsible for payments on a loan as the primary account holder. Meaning, if the principal is late on a payment, it is reported on their credit score and yours. Worse still, it may take several months before you are aware of the late or missed payments. Therefore adding up negative credit information in your name, without you even knowing it. Be sure you keep in contact with the principal on the loan to check in on their payments.

Conversely, cosigning a loan can actually improve your credit score. If the principal makes all of their payments in full and on time, this will positively affect both of your credit scores. Depending on the length of the loan period, this is still a risky investment – especially if you already have great credit.

You May Go Into Debt

We mentioned the debt-to-income ratio earlier in this article. Specifically, in reference to someone having trouble getting a loan alone if they have a poor debt-to-income ratio. Well, when you cosign a loan you are taking responsibility for the debt of the principal signer. For example, let’s say your cousin owes $27,000 on a car purchase that you cosigned. Now, in the eyes of credit standings, it now looks like you have a debt of $27,000. If your income is substantially more than that, your debt-to-income radio will likely be fine. However, if the ratio is too high, you may have trouble taking out your own loans.

You May Have to Take Over the Payments

The very foundation of a co-signer is that they take financial responsibility for the loan if the principal defaults. Translation: if they cannot pay, you have to. As previously mentioned, you may not be aware of late or missed payments until months later. When that happens, debt collectors may target you and even sue you for the outstanding payments. Worse yet, you can have a judgment entered against you. A judgment is bad credit juju, and one of the worst things for your financial health.

Furthermore, let’s say the principal files for bankruptcy. They will get the shared debt discharged from their financial ledger. You, however, will be solely in charge of paying the debt and maybe even forced into bankruptcy of your own.

Relationship Strain

It should go without saying that money is one of the leading causes of relationship trouble. Cosigning on a loan is a big commitment, that often lasts for years to come. In the event that the principal defaults on the payments and ruins your credit, how would you feel? Would your relationship be adversely affected? What if you grow apart before the terms of the loan are met? Be sure to consider the potential strain this type of arrangement could put on your relationship.

Backing Out is Not Easy

Once you have decided to cosign a loan, it is quite difficult to make out should you change your mind. First of all, the principal would have to close the account and re-apply as a single entity. However, their financial situation would need to drastically improve for them to qualify on their own.

Backing out is not impossible, it is just complicated. Truly understand that when you cosign a loan, you are most likely in it until the loan is paid back in full.

Guaranty vs. Guarantee

In the eyes of the law, guaranty and guarantee can sometimes mean the same thing. Both are detailing a promise made to another party. Essentially, the primary difference lies within the intended grammatical use. For example, guaranty, as detailed in the section above, is only used as a noun. Guarantee, on the other hand, can be used as either a verb or a noun.

Guarantee Definition

Let’s dive deeper into the grammatical variations of guarantee.

When used as a verb, guarantee can mean:

1. Affirming that a promise made will, in fact, be kept. The client guarantees payment by October 1st of this year. 
2. Agreeing to absorb unpaid debts or obligations on someone else’s behalf. My mother guaranteed my apartment lease.  (i.e. The mother would cover the rent if their child could not make defaulted on payments)
3. Stating something with extreme confidence. I guarantee you will love this restaurant. 

Conversely, guarantee can also be used as a noun. Defined as:

• A promise that a service will be provided, debt will be paid, or a condition will be met. I submitted a written guarantee to my bank ensuring my debts will be paid in a timely manner. 

Guarantor Definition

A guarantor is a person who takes responsibility for someone else’s debt in the event that they cannot pay. For example, a co-signer on a mortgage would be considered a guarantor. Not only does a guarantor take financial responsibility of a loan, but they use their own personal assets as collateral. However, the guarantor has no legal claim to the asset acquired by the principal within the loan terms.

A guarantor can also be responsible for verifying someone’s identity. For example, when someone is applying for a passport.

Who Can be A Guarantor?

First of all, a guarantor must be a legal resident of the country where the loan is taking place. Furthermore, one must be 18 years or older with a history of good credit to qualify. When applying for a loan, a guarantor must prove they have sufficient income to cover the payments if the principal defaults.

Interestingly enough, a principal applying for a loan can sometimes act as their own guarantor. When this happens, the principal will put up an asset of their own as collateral. For example, a principal may offer their car as collateral in a loan agreement. This means that if they cannot keep up with their payments, the lender can seize the car and sell it to cover the debt owed.

Guarantor vs. Co-signer

To clarify, a guarantor is not the same thing as a co-signer. When someone co-signs for something, they will legally own said asset. On the other hand, a guarantor has no legal rights to the asset acquired. A guarantor simply promises to take over payments in the event the principal fails to pay.

It is usually at the discretion of the lender to choose whether to request a guarantor or a co-signer. A co-signer is preferred if the borrower’s income falls short of the requirement set by the lender. In this case, a co-signers income with likely make the borrower meet, or exceed, the requirement. A guarantor, on the other hand, may have satisfactory income but a mediocre credit score.

Should I Use a Notary?

As with any important document, you should use a notary. A notary is an official representative of the secretary of state. The primary role of a notary is to prevent fraudulent signatures on documents of great importance. This process is referred to as a notarization.

In terms of guarantees, loans, and any other document regarding financial commitments, it is always a good idea to get the relevant documents notarized. There have been a number of cases where a principal has forged someone’s signature as a guarantor or co-signer. If and when they default on the loan, the person whose signature they forged could face some rather unexpected and nasty debts. Furthermore, that person’s credit score will likely be ruined. Proper notarizations help protect your delicate financial health, as well as your assets.

What Happens During a Notarization?

Notary laws and regulations vary from state to state. However, notarizations go something like this…

1. Identification – The cornerstone of a successful notarization is the proper identification of all parties signing the document. This is done with the aid of valid a valid form of photo identification, such as a drivers license or passport
2. Consent – A thorough identification involves more than checking i.ds. In fact, a notary will go one step further and confirm that the signing party is volunteering to sign at their own free will. Furthermore, the notary will ask the signer if they understand the document in its entirety
3. Oath or Affirmation – Certain types of documents call for a jurat notarization. The distinctive element of a jurat is the requirement for the signer to verbally accept an oath or affirmation. An oath, as you are probably familiar, is a promise made before God. In the case a jurat, the signer is promising that the contents are true and complete. An affirmation carries the same weight but promises truth on the signer’s honor instead of to a higher power
4. Sign and Stamp – Finally, all required parties and the notary themselves will sign the document. Then, the notary will use their unique notary seal (stamp) to complete the notarization

Notary vs. Attorney

Let’s take a step back to number two in the last section, “consent”. Here, we detail that a notary ensures each signing party understands the document they are signing. It is vital to note that it is not the role of a notary to answer questions if the signer doesn’t understand something within the document. In fact, a notary cannot legally act as an attorney regarding a document they are notarizing.

Therefore, if you have any lingering questions about the document, consult a lawyer before getting the document notarized. This is especially important regarding documents involving finances.

What to Bring to a Notary Appointment

Congratulations! You have consulted your lawyer and you have the final draft of your document. Now what? Here is a list of everything you need to bring with you to your appointment.

Proper Photo Identification

As previously mentioned, accurate confirmation identity is vital to a proper notarization. Essential elements of an acceptable form of ID include:

• A recent, distinguishable photo
• The issuing authority (i.e. Texas if you have a Texas drivers license)
• An accurate physical description (eye/hair color, height, etc.)
• Your signature

Commonly accepted forms of identification include:

• A valid passport
• State-issued driver’s license or identification card
• Green card (resident alien identification card)
• Military identification card

Conversely, unacceptable forms of identification include:

• Social security cards
• birth certificates (long form or short form)
• School or university ID cards
• Credit or debit cards (even ones with photos on them)

Please note that acceptable forms of identification can vary by state.

Signer(s) of the Document

More often than not, documents will require the signature of more than one person. If that is the case, you can save time and money by bringing all involved parties to the same notary appointment.

What if the necessary parties all live in different states? Or perhaps your schedules simply cannot sync up to attend the same appointment. Fortunately, you can have multiple notarizations on the same document. In fact, different notaries can even perform each signature’s notarization. However, this adds considerable time and expense to the notarization process. Furthermore, it is vital that the same original copy makes the rounds for the necessary signatures. Should any amendments be made along the way, a new notarization would be required to ensure every signing party saw and accepted the changes.

The Document

Just a friendly reminder to bring the document itself! This may seem obvious, but we have all locked our selves out of our houses when forgetting something as obvious as our keys.

You can save time at the appointment by filling out any necessary fields prior to your notary appointment. However, save the fun of signing until you are in the presence of the notary. Signing in front of the notary is not always legally mandatory. However, it is a good idea to do it anyway, just in case.

Notary Fee

While some places offer complimentary notary services, you will more than likely have to pay a fee. Notary fees vary based on a variety of factors, such as:

• Type of document
• State of signing
• Number of signatures
• Additional fee options (such as travel for mobile notaries)

Typically, a notary will charge on a per-signature basis. Most states have a legal cap that a notary can charge. For example, in California, the max allowable notary charge is $10 per signature.

Where to Locate a Notary

Now that you know what to expect during a notarization, where can you get one done? Fortunately, you should have to look far to find a notary near you. There are approximately four million notaries in the United States alone. Naturally, rates and availability will vary depending on where you live. When beginning your local search, here are some good places to look:

• Banks or Credit Unions – Almost everyone out there has a bank account. If you are one of those people, your bank may offer complimentary notary services for account holders
• The Public Library – That’s right, your local library holds more than stories. Many libraries have a low-cost notary available for public use
• Hotels – A convenient option for frequent travelers, many hotels offer a notary service. Conversely, if they do not, the concierge can likely point you in the direction of one
• Police Stations – A handful of police departments offer notary services
• AAA Branches – AAA does more than fix your flat tires! Some local offices provide notary services
• Insurance Agencies – Check with your insurance provider about their notary services
• Local Government Offices – Check with your local town or city hall or county clerk’s offices about their notary services
• Universities – Many campuses provide notary services to students and faculty
• Mobile notaries – The ultimate in luxury notary services – have the notary come to YOU! Why race around town when you can have notary services brought right to your doorstep. This option is more commonly available in larger metropolitan areas

Bear in mind that notaries are public servants. Therefore, even if you are not a client/customer/account-holder at any of the above establishments, they can not deny you of notary services if they offer them.

Guaranty: In Summary

With any matters dealing with finances, extra care and consideration should always be given. If you are asked to guaranty or co-sign a loan, understand the risks involved. Consider the proposition from all angles, and make sure you have a solid, trusting relationship with the principal of the loan. A guaranty is a legally binding document in which you are held accountable for the actions of another. If you decide to guaranty a loan on someone else’s behalf, you are putting your finances and assets on the line. To further protect yourself and your financial well-being, get all financial documents notarized.

Sources

https://definitions.uslegal.com/g/guaranty/

https://www.credit.com/loans/loan-articles/cosigner-what-you-need-to-know/

https://www.investopedia.com/terms/g/guarantor.asp

https://www.thebalanceeveryday.com/where-to-notarize-affidavit-896914

https://www.superiornotaryservices.com/blog/identification-notary-public/

https://www.thebalance.com/why-you-shouldn-t-co-sign-for-someone-else-960995

Guarantee vs. Guaranty – What’s the Difference?

https://abovethelaw.com/career-files/lawprose-lesson-121-whats-the-difference-between-guarantee-and-guaranty/

https://www.coveringcredit.com/business_credit_articles/Laws_and_Regulations/art845.shtml