Performing Closings in Utah

According to the website for the Utah Lieutenant Governor’s Office, one of the key facts notaries must remember is that notarizing real estate settlement documents for a title agency when a title escrow agent is not present and one is not a licensed title escrow agent, is illegal. A signing agent who engages in this act is acting as an unlicensed title escrow agent.

However, in a position letter from the Utah Insurance Department written on May 28, 2006, Darrel G. Powell, Director of the Market Conduct Division, addresses the issue to Fran Fish, Director at the Utah Lt. Governor’s Office:

In the past, the Utah Insurance Department has required a notary notarizing a title escrow settlement document to be licensed as a title escrow producer. The Title and Escrow Commission reviewed this practice and determined that the process of obtaining a signature, and the notarization of that signature, on a title escrow settlement document was not part of the duties included in the scope of the title escrow producer license.

Effective immediately, if a notary is only obtaining a signature, and notarizing that signature on a title escrow settlement document, there is no requirement for the notary to be licensed as a title escrow producer. Obtaining and notarizing a title escrow settlement document does not include explaining the content or purpose of a document being signed or the handling of any escrow settlement monies, or any other duties performed by a title escrow producer.

If a notary is asked to do anything other than obtain and notarize a signature on a title escrow settlement document, a title escrow producer license may be required.

An article written by David S. Thun for the National Notary Association’s Notary News in May presented the change in Utah limitations for signing agents. However, the page on the Utah Lt. Governor’s website’s entitled Facts To Remember, last revised May 10, 2006, still shows Item 17 in bright red font: “If you are notarizing real estate settlement documents for a title agency when a title escrow agent is not present and you are not a licensed title escrow agent, you are illegally acting as an unlicensed title escrow agent.”

The Office of Lt. Governor Gary G. Herbert was contacted regarding the inconsistencies between the page and the statement released by the Utah Insurance Department and the National Notary Association. Dorian Ashton, Office Manager for the Lt. Governor, informed The Notary Republic that she was not aware that the website had not been updated and stated that she would direct the matter to the appropriate party.

“It may take a few business days,” she said.

Special thanks to Vice President of Operations Ryan Edwards for the story and Gerri Jones with the Utah Insurance Department for help clarifying the issue.