![]() When you need to have a document notarized, you may notice the terms “ witness signature” and “notarization” used interchangeably. ![]() Signature guarantors will usually review the document, witness the signature, and apply their stamp throughout the transaction. Signature guarantees are required by federal law in certain situations in order to authenticate the sale or transfer of securities and protect the seller from fraud and identity theft. On the other hand, a notary represents themselves in a transaction and accepts liability for any potential errors or identity forgery. This means that the institution, rather than the signature guarantor, accepts liability in the event of errors, loss, or fraud. The primary distinction between a signature guarantee and a notary signature is that a signature guarantor provides their signature on behalf of the institution (such as a bank) they represent in the transaction. An individual who provides a signature guarantee is known as a signature guarantor. Signature guarantees are issued in the form of a unique stamp (known as a “ medallion stamp”) which verifies the signatures and ensures they aren’t copied or counterfeit. What is signature guarantee?Ī signature guarantee is a form of authentication explicitly issued for financial documents produced by banks, trust companies, credit unions, brokerage firms, and other financial institutions. Therefore, it is essential to know which type of official signature you need in any given legal situation. That being said, signature guarantors and notaries do not always have the same authority when signing a document. Most legal documents require a witness of some sort to be considered valid, regardless of whether it is a signature guarantor or a notary. Both signature guarantors and notaries can serve as a witness to a document signing. ![]() What is witness?Ī witness is any neutral, third-party observer of a document signing. To help you understand the difference between witness signatures and notary signatures, we’ve put together this brief explanation of signature guarantees and notarizations. notary signature ultimately comes down to the scope and oversight of the document. The main factor that differentiates a witness signature vs. Both types of signatures are crucial, legally binding guarantees verifying the signing parties’ identities. When a business or individual is dealing with legal documents and transactions, many states require the documents to contain either a witness signature or a notary signature.
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