Notary Signing Agents Professional Liability Insurance in Delaware

Notary Signing Agents in Delaware at a glance

Commissioning Authority

Delaware Secretary of State, Notary Public Section

Responsible for issuing and regulating all notary commissions in Delaware.

Commission Term

2 years

Delaware notaries must renew their commission every two years.

Attorney Involvement

Required for all real estate closings

Delaware is an attorney-only closing state by Supreme Court ruling.

Journal Requirement

Mandatory

Delaware law requires a permanent journal for all notarial acts.

Delaware Supreme Court Closing Rulings

The Delaware Supreme Court has established that the conduct of a real estate closing constitutes the practice of law, meaning that only a Delaware attorney can lead the process, explain the documents, and handle the funds involved in the transfer of property. For a notary signing agent, this means they cannot independently facilitate a closing for Delaware property. Their role is restricted to that of a witness and notary, usually performing their duties within a law firm or at a location designated by the closing attorney.

Signing agents who attempt to handle a closing without an attorney in Delaware are in violation of state law and could face significant legal consequences. Because of this, the signing agent market in Delaware is largely integrated with the state's legal community. Professionals in this field must be extremely careful not to answer legal questions or provide guidance to borrowers, as doing so would be the unauthorized practice of law in a state that takes these boundaries very seriously.

Frequent Renewals and Oversight

Delaware notaries are commissioned for a term of two years, which is shorter than most other states and requires frequent attention to renewal deadlines. The Secretary of State oversees the commissioning process and enforces the rules governing notarial acts. While Delaware does not require notaries to post a surety bond, the high value of commercial and residential property in the state makes professional liability insurance a necessity for any active signing agent who wants to protect their business.

Errors and Omissions insurance is the only way for a Delaware signing agent to protect themselves from the cost of defending against a lawsuit. Lenders and title companies typically require signing agents to carry significant coverage, knowing that even a minor technical error on a mortgage document can lead to costly delays or litigation in Delaware's court system. This insurance ensures that the signing agent has the resources to defend their professional reputation without exhausting their personal finances.

Recordkeeping as a Defense Strategy

Delaware law requires notaries to maintain a journal of all notarial acts. The journal can be on a tangible medium or in an electronic format, but it must be permanent and tamper-evident to deter fraud. For signing agents, this record is essential for documenting that they verified the identity of the signers and that the signing occurred in the presence of the required parties. The journal serves as a vital piece of evidence if a transaction is ever challenged for fraud or procedural errors.

A well-kept journal also helps the signing agent manage their professional liability over the long term. By recording the specifics of every signing, the agent creates a contemporaneous log that can be used to rebut claims of negligence years later. In a state where real estate transactions are closely scrutinized, the discipline of thorough journaling is a mark of a professional signing agent and a key requirement for remaining in good standing with the Secretary of State's office.

Notary Signing Agents FAQs for Delaware