As a 2012 resolution, businesses and notaries across the state of Michigan may want to consider reviewing a new package of laws that could cause big legal problems if they are not followed. The National Notary Association says the eight new state laws, which became effective on the first of the year, establish harsh legal consequences for illegal notarizations in mortgage lending.

The new laws were created in response to an increase in real estate fraud and forged documents amidst the robo-signing crisis that occurred across the state and country. The regulations put the pressure on Michigan businesses that want to avoid costly litigation and other legal repercussions.

Businesses in the Detroit area may be interested to know that the NNA will be offering various support services geared toward both notaries and employers to make sure the new laws are fully understood by those who could most be affected by them. "It is essential that businesses train their notary-employees to follow state law and employ best practices to prevent mistakes that can lead to costly legal problems," said the CEO of the NNA.

What kind of legal consequences is he talking about? Under Michigan laws, any person or business who is thought to have purposefully falsified notarizations and documents related to real property transactions can be prosecuted by the state. In fact, according to one bill, violating notary laws when working with real property or mortgage transactions is a felony. Those who are convicted could face a $5,000 fine and four years in prison. Other Michigan laws say those found guilty of falsifying documents could be sentenced to 15 years in prison for each violation.

This clearly shows how seriously Michigan authorities take real estate fraud. Even a simple mistake in paperwork could result in litigation. Because of this, it is important that businesses and their employees have a good understanding of the new laws. Speaking to an experienced business law attorney may be helpful.

Source: Detroit Legal News, "New Michigan anti-fraud laws send warning to notaries, businesses," Jan. 13, 2012