How Many Forms of ID Should a Notary Request? Key Guidelines and Copy Requirements

In real estate transactions, a notary’s responsibility goes far beyond simply witnessing signatures. One of the most crucial aspects of a notary’s role is ensuring that the identity of each signer is thoroughly verified. However, when it comes to verifying identity, not all transactions are created equal. The number and type of identification documents required can vary significantly depending on the instructions provided by the hiring company—whether it's the lender, title company, or signing service—and what’s established in the USA Patriot Act Form.

So, how can notaries determine how many forms of ID they should collect? In this article, we’ll break down the importance of understanding specific ID requirements, why it’s vital to adhere to the guidelines set by hiring companies, and how these requirements relate to compliance with the USA Patriot Act. Additionally, we’ll discuss why it’s essential to include copies of the IDs collected in the scanbacks to the hiring company. We’ll also provide best practices for notaries to ensure they collect and submit the right identification every time.

The Role of the USA Patriot Act in Identity Verification

The USA Patriot Act passed in 2001, has had a lasting impact on many sectors, including real estate and financial services. One of the Act’s primary purposes is to help financial institutions prevent fraud, money laundering, and terrorist financing by implementing strict identity verification processes. This means that during any real estate transaction, lenders and title companies must adhere to the regulations established in the Act and verify the identities of all parties involved.

For notaries, this translates into playing a key role in verifying that all signers present the correct and sufficient identification documents. Depending on the nature of the transaction and the hiring company’s requirements, a notary may be asked to collect one, two, or even more forms of ID. These requirements are often specified in the USA Patriot Act Form that’s included in the closing package, and failure to follow them could lead to compliance issues or even voided transactions.

Why Knowing the ID Requirements is Crucial for Notaries

1. Understanding the specific ID requirements for each signing is crucial for notaries, as it ensures the transaction is compliant and legally binding. The number of IDs requested can vary depending on the following factors:

2. Hiring Company Instructions: The hiring company—whether it’s the lender, title company, or signing service—will provide notaries with detailed instructions on how many forms of ID they need to collect from each signer. These instructions are often outlined in the closing documents or communicated directly to the notary in writing. It’s vital to read and understand these guidelines before arriving at the appointment.

3. USA Patriot Act Form Specifications: In many real estate closings, the USA Patriot Act Form will specify the number of forms of ID required. This form acts as a checklist to ensure that the signer’s identity has been thoroughly verified. Some transactions may only require one form of ID, such as a driver’s license, while others may mandate two forms, such as a driver’s license and a passport or Social Security card.

4. Type of Transaction: Different types of transactions may have varying ID requirements. 

Why Providing Copies of IDs is Critical

While verifying and collecting the required number of IDs is essential, it’s equally important for notaries to provide copies of these IDs to the hiring company along with the signed documents. Here’s why this step is critical:

• Compliance Verification: Including copies of the IDs collected ensures that the hiring company can verify that the notary adhered to their instructions and the requirements set forth by the USA Patriot Act. This is especially important in cases where two forms of ID are required, as the hiring company can cross-check the documents for compliance purposes.

• Audit Trail and Record-Keeping: Having copies of IDs on file provides an audit trail for the transaction, which can be invaluable if any questions or disputes arise later. It also allows the lender or title company to maintain complete records, ensuring that they have all the necessary documentation should they be subject to an audit or review.

• Preventing Fraud and Identity Theft: By having copies of the IDs used during the signing, the hiring company can more easily detect fraudulent activity or attempts at identity theft. If there are any discrepancies, such as a signer using an invalid ID, the hiring company can catch these issues more quickly and take the necessary actions.

• Streamlined Processes and Faster Closings: Providing ID copies along with the scanbacks can expedite the review and funding process. It ensures that the hiring company has all the documentation they need right from the start, reducing the chances of delays due to missing information or incomplete files.

Best Practices for Providing ID Copies

Given the importance of including ID copies, how can notaries ensure they’re submitting these documents correctly? Here are a few best practices:

• Follow the Hiring Company’s Instructions: If the hiring company requests copies of the IDs, make sure to include them with the scanbacks as instructed. If there is any ambiguity, reach out to confirm what’s required.

• Ensure Legibility and Clarity: When making copies of IDs, ensure that they are clear and legible. Blurred images, dark shadows, or cropped portions can render the copies useless. It’s best to scan the IDs at a high resolution and double-check that all information is visible and readable.

• Maintain Confidentiality: ID copies contain sensitive personal information. Be mindful of how you handle and store these documents. Use secure methods to transmit the copies and avoid keeping them longer than necessary to prevent unauthorized access.

• Include Only What is Necessary: When submitting ID copies, only include what is specifically requested. For example, if the hiring company only needs the front side of a driver’s license, there’s no need to include the back. Always follow the guidelines to prevent overwhelming the hiring company with unnecessary documentation.

Common Scenarios: When to Ask for and Provide One or Two Forms of ID

To further illustrate the importance of knowing how many IDs to collect and when to provide copies, let’s explore a few common scenarios:

• Single Form of ID Required: For many straightforward real estate transactions, the USA Patriot Act Form and the hiring company may only require a single form of government-issued ID, such as a driver’s license or passport. In this case, make a copy of the single ID and include it with the scan backs.

• Two Forms of ID Required: For larger transactions or those involving higher risk factors (e.g., out-of-state buyers or foreign nationals), the hiring company may require two forms of ID. This could include a primary form of ID like a driver’s license, accompanied by a secondary form such as a Social Security card, birth certificate, or utility bill. Be sure to provide copies of both IDs to meet compliance requirements.

• Special Situations: There may be instances where the hiring company’s instructions do not specify the number of IDs required but do request ID copies. In these cases, it’s best to err on the side of caution and collect two forms of ID if possible. Notaries should also communicate with the hiring company for confirmation to avoid any issues.

The Consequences of Failing to Follow ID Requirements and Provide Copies

Failing to follow the specified ID requirements or neglecting to include ID copies can have serious consequences. Not only could it result in delays or complications in the transaction, but it may also jeopardize the legality of the closing. If a notary collects fewer IDs than required or fails to verify the IDs correctly, the transaction could be challenged later on, potentially leading to legal disputes.

Moreover, non-compliance with the USA Patriot Act’s ID verification requirements or failing to submit ID copies could have severe repercussions for the lender or title company, as it could be considered a violation of federal law. This is why it’s critical for notaries to follow instructions to the letter and ensure that they are collecting and providing the correct number of IDs as outlined in the USA Patriot Act Form and the hiring company’s guidelines.

Your Key to Successful, Hassle-Free Real Estate Closings

Knowing how many forms of ID to collect during a real estate closing and providing copies of those IDs is not just a matter of following instructions—it’s about ensuring compliance and maintaining the integrity of the transaction. By understanding the ID requirements set by the USA Patriot Act and the specific instructions from the hiring company, notaries can provide a higher level of service and prevent issues that could arise from inadequate verification or incomplete documentation.

For a seamless and professional real estate closing experience, you need a reliable notary service that gets these details right. Trust The Closing Signing Service to handle your real estate closings with the precision and compliance needed to ensure every document is signed accurately and on time. Contact us today to schedule your next appointment and experience the highest standard of professionalism!