---
title: "What Is a Conflict of Interest? Meaning & Example | MCC"
description: "A situation where the notary benefits from the transaction or is a party to it, making the notarization improper. With a worked example."
url: "https://mcc-solutionsnj.com/notary/glossary/conflict-of-interest"
---

Notary glossary

# What is a conflict of interest?

A situation where the notary benefits from the transaction or is a party to it, making the notarization improper.

By [Matthew Coleman](/about), MCC Solutions

✓ New Jersey commissioned notary, no. 50244803, insured for errors and omissions. [See the credentials](/about/credentials)

## In plain English

Rules differ by state. Many states forbid notarizing for yourself or when you receive a direct financial benefit.

Need this notarized? [Book a notary visit in New Jersey](/notary/#order).

When in doubt, decline politely and point the signer to someone else, then write down what happened. Keeping a clean line between yourself and the transaction protects everyone involved.

## Why it matters

A notarization by someone with a stake in the document can be challenged and may be void. That can undo a property transfer or a power of attorney when it matters most.

Signers may be tempted to use a relative who is a notary, but that convenience can cause problems later.

## Worked example

A notary is named as a beneficiary in a trust document and should not notarize it.

## What to do

- Check whether you are named in the document or will benefit from it.
- Review your state's rules on notarizing for relatives.
- Decline if you have a financial or personal interest.
- Suggest another notary to the signer.
- Note the declined request in your records if your practice is to do so.

## Common mistakes

- Notarizing a spouse's deed when you are also on title can make the acknowledgment questionable.
- Accepting a commission from a sale you notarize can create a financial interest that state rules forbid.
- Assuming a small benefit does not count can lead to a challenge.

## Not the same as: Unauthorized practice of law

A conflict of interest arises when the notary benefits from the transaction, while unauthorized practice of law is giving legal advice without a license. [See Unauthorized practice of law](/notary/glossary/unauthorized-practice-of-law).

## Go deeper

- [Notary Conflict of Interest: When to Step Aside](/notary/guides/notary-conflict-of-interest-when-to-step-aside): Learn how notaries think about conflicts of interest, which situations call for stepping aside, and what signers can do when their usual notary cannot act.
- [Can a Notary Notarize for Family Members?](/notary/guides/can-a-notary-notarize-for-family-members): Can you notarize for your own relatives? See how rules differ by state, why many notaries decline, and what to do when the only notary you know is family.

## Related terms

- [Credential analysis](/notary/glossary/credential-analysis): Technology that checks whether a government ID is genuine, used in remote online notarization.
- [Credible witness](/notary/glossary/credible-witness): A person who knows the signer and vouches for their identity to the notary when the signer lacks acceptable ID, where state law allows it.
- [Commission](/notary/glossary/commission): The official authority a state gives a person to act as a notary for a set term.

## Common questions

**What is a conflict of interest?**

A situation where the notary benefits from the transaction or is a party to it, making the notarization improper.

**Can you give an example of conflict of interest?**

A notary is named as a beneficiary in a trust document and should not notarize it.

**Can a notary notarize for family?**

Rules vary by state. Even where allowed, it can be wise to avoid it if the notary benefits.

**Can an employee notarize for their employer?**

Often yes, if they do not personally benefit. Check state rules.

General information, not legal advice. Rules vary by state and change; check with your state's commissioning office.

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 [Full glossary](/notary/glossary)

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