Utah Notary Practice Test

What can a notary do as a licensed escrow agent?

1. Draft contracts

2. Execute all documents without limitations

3. Explain closing documents and be named in documents

4. Act as a mediator in disputes

The correct answer is: Explain closing documents and be named in documents

A licensed escrow agent has specific responsibilities within the process of closing a real estate transaction. In this context, one of the key roles involves being able to explain closing documents to the parties involved. This is crucial in ensuring that all parties understand the terms and conditions of the agreements they are entering into, which supports informed consent. When the notary is named in documents, it signifies their formal acknowledgment of the closing process and their involvement in ensuring that all necessary verifications have been completed. This typical function aligns with the notary's educational background and their role in facilitating transactions—ensuring proper identification of signers and overseeing that appropriate steps are followed. While drafting contracts, executing documents without limitations, or mediating disputes may involve other legal professionals or be outside the usual scope of a notary's responsibilities, explaining closing documents and being named in them falls squarely within the realm of a notary acting as a licensed escrow agent. This highlights the notary’s role as not just a witness, but as an essential participant in the transaction process.