- A notary public verifies that a person signing a document is who he says he is. Each state has its own requirements, but many notaries are registered with the Secretary of State. Notaries are required to use their stamp or seal to witness signatures for a variety of legal documents. People signing must appear in person before the notary and present proof of their identities. For this reason, notaries are frequently used in real estate transactions to help prevent fraud in obtaining loans and appearing as buyer or seller.
- Real estate transactions can be complicated and expensive. The last step in the process is the closing, where all documents are signed and completed to finalize the deal. To alleviate confusion during the closing, the U.S. Department of Housing and Urban Development requires a standardized settlement statement to be used throughout the country. Known as the HUD-1, it breaks down charges and credits for the buyer and the seller, detailing the total that the seller must present at the time of closing. Sections on the HUD-1 include loan information, escrow costs, miscellaneous charges and recurring and non-recurring expenses.
- One feature of a closing is the number of signatures and initials needed to complete the paperwork. Many forms seem redundant and each one is explained by the closing agent or notary. To make the transaction official, some documents must be notarized, such as the loan note to obtain the mortgage on the property. Although the HUD-1 is signed, it does not require a notary seal to close the transaction.
- To prepare for your closing meeting, you should ask for the HUD-1 beforehand and review it for accuracy. Bring your driver's license and another picture ID to show the notary to prove that you are who you represent. Have a cashier's check prepared for the exact amount on the HUD-1 if you are the buyer. Don't sign anything that you do not understand or that is different than what you have previously agreed upon, such as the terms of the loan.
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