The Importance of Due Diligence in Notarization: Lessons from a Landmark Case

Spouses Elmer and Mila Soriano v. Atty. Gervacio B. Ortiz, Jr. and Atty. Roberto B. Arca, 867 Phil. 12 (2019)

Imagine entrusting the title to your family home to a relative, only to discover it’s been fraudulently mortgaged without your knowledge. This nightmare became a reality for the Soriano family, highlighting the critical role of notaries in safeguarding property rights. The Supreme Court case involving the Spouses Soriano and their notaries public underscores the severe consequences of failing to adhere to notarial duties. At the heart of this case is the question: How can notaries ensure the authenticity and integrity of the documents they notarize?

In this case, the Sorianos accused their notaries of notarizing mortgage documents without their presence, leading to a legal battle that reached the Supreme Court. The key issue was whether the notaries had breached their responsibilities under the Notarial Law by failing to verify the identities of the parties involved and by notarizing documents without the actual appearance of the signatories.

Legal Context: The Role and Responsibilities of a Notary Public

A notary public in the Philippines is entrusted with a significant responsibility: to authenticate the identity of individuals and the authenticity of documents. This role is governed by the 2004 Rules on Notarial Practice, which mandate that a notary must personally know the affiants or require competent evidence of their identity. The term “competent evidence of identity” refers to identification documents issued by government agencies with the bearer’s photograph and signature.

The importance of these rules cannot be overstated. Notarization converts a private document into a public one, making it admissible in court without further proof of authenticity. As such, notaries are expected to exercise due diligence to prevent fraudulent acts. For example, if a notary fails to verify the identity of a person claiming to be a property owner, they could inadvertently facilitate the mortgage or sale of a property that does not belong to that individual.

The relevant provision from the 2004 Rules on Notarial Practice states: “A notary public shall not perform a notarial act if the person involved as a signatory to the instrument or document… is not personally known to the notary public or otherwise identified through competent evidence of identity as defined by these Rules.”

Case Breakdown: The Soriano Family’s Ordeal and the Court’s Decision

The Soriano family’s ordeal began when they entrusted their property title to a relative, who subsequently lost it. The title was then used to mortgage the property to a third party without the Sorianos’ knowledge. The Sorianos discovered two mortgage documents notarized by Atty. Ortiz and Atty. Arca, which they claimed were fraudulent because they had never appeared before these notaries.

Atty. Ortiz denied involvement, stating his notarial commission had expired before the date of the mortgage. The Supreme Court found his defense credible and dismissed the complaint against him. On the other hand, Atty. Arca admitted to notarizing the documents but argued that the Sorianos had appeared before him. The Court, however, found Arca’s defense unconvincing, noting that he relied solely on Community Tax Certificates (CTCs) from Manila, despite the Sorianos being residents of Cavite.

The Court emphasized the importance of verifying identities, quoting from previous cases: “A notary public should not notarize a document unless the person who signed the same is the very same person who executed and personally appeared before him to attest to the contents and the truth of what are stated therein.” The Court also highlighted the public interest in maintaining the integrity of notarized documents, stating, “Notarization is not an empty, meaningless routinary act but one invested with substantive public interest.”

Ultimately, the Supreme Court suspended Atty. Arca from the practice of law for one year, revoked his notarial commission, and prohibited him from being commissioned as a notary public for two years.

Practical Implications: Safeguarding Against Notarial Fraud

This ruling serves as a stern reminder to notaries public of the importance of due diligence. It also offers guidance to property owners and individuals on how to protect themselves from notarial fraud. Going forward, similar cases will likely be judged with the same rigor, emphasizing the need for notaries to verify identities thoroughly.

For businesses and individuals, this case underscores the necessity of working with reputable notaries who understand their responsibilities. It’s crucial to ensure that notaries are aware of the parties’ identities and that they adhere strictly to the rules of notarization.

Key Lessons:

• Always verify the identity of the parties involved in a notarization.
• Notaries must adhere to the 2004 Rules on Notarial Practice to avoid legal repercussions.
• Property owners should be vigilant about who has access to their titles and documents.

Frequently Asked Questions

What is the role of a notary public in the Philippines?
A notary public authenticates the identity of individuals and the authenticity of documents, ensuring they meet legal standards for use in court.

What are the consequences of notarizing a document without proper verification?
Notaries may face suspension, revocation of their commission, and prohibition from being reappointed as a notary public.

How can property owners protect themselves from notarial fraud?
Property owners should keep their titles secure and work with trusted notaries who verify identities thoroughly.

What is competent evidence of identity?
Competent evidence of identity includes government-issued identification documents with the bearer’s photograph and signature.

Can a notary public be held liable for notarizing fraudulent documents?
Yes, notaries can be held liable if they fail to adhere to the rules and verify the identities of the parties involved.

ASG Law specializes in notarial law and property disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.