New York State Notary Practice Exam

Is a notary public's notarization valid if they have a pecuniary interest in the transaction?

1. Yes, it is valid

2. No, it is invalid

3. Only with consent from all parties

4. Only if the interest is disclosed

The correct answer is: No, it is invalid

A notary public must remain impartial and unbiased to ensure the integrity of the notarization process. If a notary has a pecuniary interest in the transaction they are overseeing, it introduces a conflict of interest, which undermines the trust and neutrality that is fundamental to the role of a notary. Therefore, the notarization would be deemed invalid because the notary cannot impartially serve the interests of all parties involved. Maintaining an unbiased stance in all transactions preserves the credibility of the notarial act, and any vested financial interest could potentially influence the notary's actions or decisions, leading to questions about the validity and authenticity of the notarization. As a result, any notarization performed under such a conflict is not recognized as valid.