Q. If notary fees just increased $5 per signature in 2017, why is the buyer’s notary fee increasing $20-$50 per signing?
A. It may surprise some to know that each lender’s loan document package is different and a buyer can typically expect to sign anywhere from 1 to 10 loan documents that require notarization when they purchase real estate in California.
If the notary fee is now $15 per signature due to AB2217 (Cal. Govt. Code § 8211), the fees for notarization can add up. For example, for a single buyer signing 5 documents that require notarization, the notary fee that would have been $50 in 2016 is now $75 due to the change in the law.
Check with your Escrow Officer when estimating notary fees into closing costs as some companies have a maximum notary fee of $120 charged on the buyer’s side when signed in-house during business hours with a company approved notary, no matter how many documents in the loan package need notarization. This can amount to savings to the buyer if, for example, your transaction had 2 buyers x 5 documents each = $150 notary fees.
With a $120 maximum for the buyer’s side of a transaction, you can save $30 for this fee alone by using Placer Title, for example. However, for a buyer who signs outside of the title company or after hours, the typical mobile notary charges the buyer a fee that can range from an estimated $125 to $250, depending on the type of signing and the location which is often what the lender will plan for when preparing the LE and CD (Loan Estimate and Consumer Disclosure).
Visit AB 2217 for more information!
