The Importance of Diligence in Notarial Practice: A Lesson from the Supreme Court

Spouses Virginia and Ramon Aldea v. Atty. Renato C. Bagay, A.C. No. 12733, October 14, 2020

Imagine inheriting a cherished family property, only to discover that someone has forged your signature on a document transferring ownership. This nightmare became reality for Virginia Aldea, whose ordeal underscores the critical role of notaries public in safeguarding legal documents. In the Supreme Court case of Spouses Virginia and Ramon Aldea v. Atty. Renato C. Bagay, the court addressed the negligence of a notary public who failed to verify the identity of signatories, leading to severe professional repercussions. This case highlights the essential duty of notaries to uphold the integrity of legal documents and the potential consequences of failing to do so.

Virginia Aldea inherited a portion of a property in Limay, Bataan from her deceased parents. However, she later discovered an Extra-Judicial Settlement of Estate with Sale, purportedly signed by her and other heirs, transferring the property to another party. This document was notarized by Atty. Renato C. Bagay, despite Virginia’s assertion that her signature was forged and she had never appeared before him. The central legal question revolved around whether Atty. Bagay had breached his notarial duties by notarizing a document without ensuring the presence and identity of the signatories.

The Legal Framework of Notarization

Notarization is a critical legal process that transforms a private document into a public one, making it admissible in court and granting it full faith and credit. The 2004 Rules on Notarial Practice, issued by the Supreme Court, outline the responsibilities of notaries public. Specifically, Section 2(b), Rule IV of these rules prohibits a notary from performing a notarial act unless the signatory is personally present and identified through competent evidence of identity. Competent evidence of identity, as defined in Section 12, Rule II, includes a current identification document bearing the individual’s photograph and signature or the affirmation of credible witnesses.

These rules are designed to ensure that the notary verifies the genuineness of the signature and confirms that the document reflects the signatory’s free act and deed. For lawyers, who often serve as notaries, the Code of Professional Responsibility (CPR) further mandates adherence to the law and prohibits engaging in deceitful conduct.

Consider a scenario where a homeowner is selling their property. The notary’s role is to ensure that the seller is who they claim to be and that they willingly agree to the transaction. If the notary fails to verify the seller’s identity, the entire transaction could be jeopardized, leading to potential legal disputes and financial losses.

The Journey of the Aldea Case

Virginia Aldea’s journey began with the discovery of the fraudulent document, prompting her and her husband, Atty. Ramon Aldea, to file a criminal complaint for estafa through falsification of public documents against Atty. Bagay and others. Simultaneously, they initiated a disbarment complaint against Atty. Bagay for his role in the notarization.

Atty. Bagay admitted to notarizing the document but claimed he did so in good faith, asserting that he did not know the parties involved and relied on their community tax certificates for identification. However, the Integrated Bar of the Philippines Commission on Bar Discipline (IBP-CBD) found him liable for failing to verify the identities of the signatories, recommending a six-month suspension from the practice of law, revocation of his notarial commission, and a two-year suspension as a notary public.

The IBP Board of Governors increased the suspension to one year, a recommendation the Supreme Court modified. The Court emphasized the importance of notarization, stating, “Notaries public are constantly reminded that notarization is not an empty, meaningless, and routinary act.” It further noted, “A notarized document is by law entitled to full faith and credit upon its face; for this reason, notaries public must observe with utmost care the basic requirements in the performance of their duties.”

The Supreme Court’s decision was influenced by Atty. Bagay’s prior disciplinary action in Angeles, Jr. v. Bagay, where he was found negligent in notarizing documents while outside the country. This history of negligence led the Court to impose a harsher penalty, suspending Atty. Bagay from the practice of law for two years, revoking his notarial commission, and permanently disqualifying him from being a notary public.

Practical Implications and Key Lessons

This ruling underscores the serious consequences of failing to adhere to notarial duties. Notaries must diligently verify the identity of signatories, ensuring their presence and understanding of the document. The decision serves as a warning to legal professionals about the potential ramifications of negligence in their notarial practice.

For property owners and individuals involved in legal transactions, this case highlights the importance of working with trustworthy and diligent notaries. It is crucial to ensure that all parties involved in a document are properly identified and that the notary follows the required procedures.

Key Lessons:

• Notaries must verify the identity of signatories through competent evidence as defined by the 2004 Notarial Rules.
• Legal professionals face severe penalties for failing to adhere to notarial duties, including suspension from practice and permanent disqualification from notarizing.
• Individuals should be vigilant about the notarization process, ensuring that all parties are present and properly identified.

Frequently Asked Questions

What is the role of a notary public?
A notary public is responsible for verifying the identity of signatories and ensuring that they willingly agree to the contents of a document. This process converts a private document into a public one, making it admissible in court.

What constitutes competent evidence of identity for notarization?
Competent evidence of identity includes a current identification document bearing the individual’s photograph and signature or the affirmation of credible witnesses who know the individual and are not privy to the transaction.

Can a notary public notarize a document if the signatory is not present?
No, a notary public must not notarize a document unless the signatory is personally present and identified through competent evidence of identity.

What are the consequences for a notary public who fails to follow notarial rules?
A notary public who fails to adhere to notarial rules may face revocation of their notarial commission, suspension from the practice of law, and permanent disqualification from being a notary public.

How can individuals protect themselves during the notarization process?
Individuals should ensure that they are present during notarization and that the notary verifies their identity through proper identification. They should also confirm that the notary understands the importance of their role in the process.

What should I do if I suspect a notarized document is fraudulent?
If you suspect fraud, consult with a legal professional immediately. They can guide you on filing a complaint and taking appropriate legal action.

ASG Law specializes in notarial practice and legal ethics. Contact us or email hello@asglawpartners.com to schedule a consultation.