The work of a notary signing agent involves many legal documents.
As a notary signing agent, you should be aware of the documents so that you are prepared while dealing with them. You might already know that a notary signing agent deals with mortgage and loan documents. The process of notarizing such documents involves many forms and legal paperwork.
Some of the most common forms and documents that a notary signing agent encounters are as follows:
1. General Warranty Deed
A general warranty deed suggests the interest and title to a property by the grantor. Moreover, it also conveys that if the title is defective or has any tax lien, mortgage claim, etc. then the grantor is liable to correct the defect with a substantial reason. The deed also conveys that the grantor has ‘seisin’, i.e. actual ownership of the property. In case the title of the property is disputed in the future, the grantor agrees to pay the expenses to fight against the dispute.
2. Compliance Agreement
A compliance agreement is found in the closing loan document package. As per this document, the mortgagor concurs to rectify the typographical or clerical errors on the request of the lender post the closure of the loan. It is usually notarized through a jurat or acknowledgment and is often referred to as ‘Errors and Omissions Compliance Agreement.’
3. Notice Of Right To Cancel
Some of the mortgages have a provision for the right to rescission wherein the borrower is given three business days after the signing of the loan document package to go through the terms and conditions of the package and cancel it in case of any discrepancy. This right is offered to the borrower through the document called the notice of right to cancel. The period starts on the first business day after the date of signing and ends at the end of the third business day.
4. Occupancy Affidavits
An occupancy affidavit conveys that the property being financed is the principal residence of the homeowner. It essentially means that the homeowner will occupy the financed property for residential purposes. This document exists because occupied properties are offered a lower interest rate by the lender. This is because the risk of maintenance does not exist when the property is occupied by the homeowner for residential purposes.
5. Signature and Name Affidavit
The purpose of this document is to protect the title company and lender from some kinds of fraud. The document confirms that the borrower is signing the document with his correct legal name. Moreover, it also confirms that the borrower’s signature used for the loan documents is correct. It is also called Signature Statement or Affidavit of Common Identity.
The important documents are not limited to the above five ones. There are more documents like TILA-RESPA form, USA PATRIOT Act CIP form, etc. that are also important but are not as common as the above ones. As a notary signing agent, it becomes your responsibility to understand the reason behind these documents so that you can explain the same to your clients.