Notarial Disqualifications Familial Relationships AND Contractual Principals

The Supreme Court recently clarified an important rule on notarial practice: a notary public is disqualified from notarizing a document if a relative within the fourth civil degree is a party to the transaction—even if that relative did not sign the document. This ruling protects the integrity of notarized documents and prevents parties from circumventing the rules through clever drafting.

The Case: Spouses Tan v. Atty. Vallejo

In Spouses Antonio and Josefa Perla Tan v. Atty. Maria Johanna N. Vallejo (A.C. No. 11219, March 16, 2022), the complainants charged a notary public with violating the 2004 Rules on Notarial Practice. The notary had notarized a Deed of Absolute Sale and an Affidavit of Confirmation of Sale involving property sold to her paternal uncle—a relative within the fourth civil degree.

The complainants alleged that they never appeared before the notary and that the uncle alone prepared the documents, persuading them to sign under the pretense that the documents would only be used for a loan application.

The Notary's Defense

The notary argued that she did not violate the disqualification rule because her uncle's signature did not appear on the documents. Only the complainants signed as vendors. She claimed that since her uncle was not a signatory, he was not a "principal" to the notarized instruments, and the disqualification did not apply.

The Integrated Bar of the Philippines initially agreed with this reasoning and recommended dismissal of the complaint.

The Supreme Court's Ruling

The Supreme Court ruled in the affirmative—the notary did violate the rules. The Court applied the disqualification provision of the 2004 Rules on Notarial Practice, which disqualifies a notary public from performing a notarial act if the notary is a spouse, common-law partner, ancestor, descendant, or relative by affinity or consanguinity of the principal within the fourth civil degree. The exact text of this provision is not reproduced in the library materials available, but the Court's decision in this case confirms its application.

The Court explained that a contract of sale necessarily has two principal parties: the seller and the buyer. Under Article 1458 of the Civil Code, one party obligates to transfer ownership and deliver a determinate thing, while the other obligates to pay a price certain. Both are essential to the contract.

The Court rejected the argument that only the signatories are "principals." The uncle, as vendee, was a principal party to the sale even though his signature did not appear on the deed. Without a vendee, there is no contract of sale at all. The role of the vendee is as important and indispensable as that of the vendors.

The Court also noted that the notary herself admitted the uncle accompanied the complainants to her office for the notarization. Notarizing a document where one contracting party was her relative within the fourth civil degree was a clear circumvention of the rules.

Why This Matters

The Court warned that accepting the notary's argument would set a dangerous precedent. Parties could simply use a unilateral deed of conveyance to do indirectly what the law prohibits directly. This would erode the integrity of the notarial system.

The Court reiterated that notarization is not an empty, routine act. It converts a private document into a public document, making it admissible in evidence without further proof of authenticity. A notarized document is entitled to full faith and credit upon its face. Notaries must observe with utmost care the basic requirements of their duties.

The Penalty

As a first-time offender, the notary was reprimanded with a stern warning and disqualified from being commissioned as a notary public—or from performing any notarial act if presently commissioned—for three months.

Practical Takeaways

• A notary public cannot notarize any document where a relative within the fourth civil degree is a party to the underlying transaction, regardless of whether that relative signs the document.
• The disqualification rule applies to all "principals" of a contract, not just those who physically sign the notarized instrument.
• In a contract of sale, both the seller and the buyer are principals, even in a unilateral deed where only the vendor signs.
• Notarization carries substantial public interest; notaries must strictly observe the disqualification rules to preserve public confidence in notarized documents.
• Violations may result in reprimand, suspension from notarial commission, or more severe penalties depending on the circumstances.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.