Notary vs Medallion Signature Guarantee
During a person’s lifetime, it is very common to have signatures witnessed or notarized for various reasons. Many documents will require an actual handwritten signature. However, electronic signatures that follow the proper formalities may also suffice for many documents. As of July 1, 2020, Florida allows for e-notarization of certain documents, including Wills, Trusts, and Deeds. Recently, we have had more financial institutions asking for Medallion Signature Guaranteed signatures. Medallion Signature Guarantees are not the same as traditional Notarization. Let us take a deeper dive into these two types of signatures.
A Notary Public is an individual licensed by the state to serve as an impartial witness when signing legal documents. Notaries in Florida are required to take and pass a one-time course to receive their license, and the license period is good for four years at a time. Prior to the expiration of the license, the Notary will need to renew the license. The role of the Notary is to ensure that the person signing the document is the actual and correct person that he or she claims to be and that such person is signing voluntarily. The process is usually done in person, but it can also be done remotely/digitally if the Notary is also licensed to notarize documents online, which is known as Remote Online Notarization, or “RON”. Keep in mind that not all Florida Notaries can provide Remote Online Notarization services. Additionally, Florida does not allow for Remote Online Notarization of non-U.S. residents (but Virginia does). The process usually requires a government issued picture identification or a personal relationship with the signor (reflected on the document as personally known). Notaries can only act within the state in which they are licensed, and they have an official stamp they use (no longer a raised seal) that contains their name, their commission number, and the date that their license expires. Interestingly, Notaries are allowed to charge for their services.
A Medallion Signature Guarantee, on the other hand, is a certification stamp that guarantees a signature, usually when a financial asset is being transferred (like a bond or a stock certificate). Most, but not all, banks and financial institutions will have at least one staff member authorized to Medallion Signature Guarantee a document. By placing the medallion stamp on a document, the institution is confirming that the signature is genuine, and that the signor has the capacity and authority to sign the document. This process is designed to protect against fraudulent transactions. Most financial institutions will only signature guarantee documents for existing clients, and they may charge a fee for the service. We encourage people looking for a Medallion Signature Guarantee to call their financial institution in advance, to confirm whether or not such financial institution offers the service, and that the employee authorized to take such action is available.
Notarizations and Medallion Signature Guarantees are both very common when it comes to signing documents. Knowing the difference between the two can help save you time and money. Always review your documents in advance to determine which you need, in order to meet with the appropriate individual.
