Notary Signing Agents (NSAs) are integral to real estate transactions, ensuring that critical documents like loan agreements, deeds, and titles are properly executed. Yet, despite their essential role, NSAs often face delayed payments, sometimes waiting weeks or even months to be compensated for their services. This has sparked an ongoing debate: should NSAs be paid at the time of service, or is the current 30-day payment schedule, in line with industry standards, more appropriate?

The Argument for Payment at the Time of Service

1. NSAs Are Independent Contractors
   NSAs work as independent contractors, not employees of title companies, lenders, or signing services. Like other service professionals, such as electricians or consultants, NSAs should be compensated immediately upon completing their services. Delayed payments contradict the independent contractor model, disrupt cash flow, and create operational difficulties for NSAs who are trying to run a business.
2. Professionalism Demands Timeliness
   The real estate industry thrives on efficiency and professionalism, and NSAs are no exception. They frequently work outside regular business hours, often on short notice, and travel to meet clients to ensure documents are executed properly. Paying them at the time of service honors their professionalism and reflects respect for the critical role they play in completing real estate transactions on time.
3. NSAs Bear Immediate Costs
   Notary Signing Agents incur various upfront expenses, such as transportation, printing, and general business overhead. Delaying their payment while they front these costs can be financially burdensome. Timely compensation helps NSAs cover these expenses and maintain smooth business operations.
4. Reducing Financial Risk for NSAs
   Waiting for payment introduces financial risk for NSAs, as delays can result from administrative errors, miscommunications, or funding issues. In some cases, NSAs may not be paid at all due to client nonpayment. Requiring payment at the time of service would eliminate these risks and ensure NSAs are compensated for their work without worry.
5. Quality of Service Can Suffer
   When NSAs must chase down overdue payments, it detracts from their focus on providing excellent service. Timely payments would allow them to prioritize their core responsibilities—ensuring accurate and legally sound document signings—rather than handling unnecessary administrative burdens.
6. Aligning with Broader Industry Standards
   Many other professional service providers within the real estate sector—such as real estate agents, appraisers, and inspectors—are paid upon completing their work. NSAs should be held to the same standard to create consistency across the industry. This would also reduce payment-related stress and support fair treatment for all professionals involved in real estate transactions.
7. Encouraging Retention of Skilled NSAs
   Consistent and reliable payment systems attract and retain high-quality NSAs. A clear and prompt payment structure incentivizes talented professionals to stay in the field, ensuring smooth, accurate closings. In contrast, delayed payments may drive experienced NSAs away, potentially reducing the quality of service available.

The Argument for a 30-Day Payment Schedule

1. Alignment with ALTA Standards
   According to the American Land Title Association (ALTA), NSAs are considered vendors in the closing process, just like appraisers, inspectors, and surveyors. As such, NSAs are paid on a standard vendor schedule, often including a 30-day payment cycle. This ensures that all elements of the transaction are verified and finalized, minimizing the chance of payment errors or disputes.
2. Work Is Completed Before Closing
   Most real estate transaction professionals, including title companies and appraisers, complete their work before closing. However, they aren’t paid until after the closing process is complete to ensure all parties meet the necessary requirements. This timeline allows for quality assurance and accommodates any modifications or corrections that may be needed before funds are disbursed.
3. Correcting Post-Closing Errors
   In some instances, errors are discovered post-closing, such as missing signatures or document mistakes. When this happens, the NSA may be responsible for correcting the issue. If payment has already been issued, there may be difficulties in accounting for costs related to corrections. A 30-day payment window provides time to address these issues, ensuring fair treatment for both parties.
4. Industry-Wide Vendor Payment Practices
   A 30-day vendor payment schedule is common in the real estate industry and other sectors to streamline operations and minimize administrative complications. This practice allows for thorough review and verification of services provided, ensuring all parties involved are compensated fairly and accurately after the closing process is complete.
5. Flexibility for Independent Contractors
   As independent contractors, NSAs have the flexibility to choose which companies they work with, and many companies offer different payment schedules. The 30-day payment window aligns with the operational workflows of title companies, lenders, and signing services. This timeline helps to maintain smooth processes while giving NSAs the freedom to manage their business across various clients.

6. Maintaining Professionalism and Trust
   Though immediate payment may seem ideal, the 30-day schedule helps ensure that transactions are completed properly and all post-closing adjustments are handled before fees are finalized. This fosters long-term professional relationships and trust between NSAs and the companies they work with, reducing potential payment disputes.

Conclusion: Balancing Both Perspectives

Both arguments present valid points. NSAs provide critical services that warrant timely compensation, especially given the costs they incur upfront and the risks they face with delayed payments. Immediate payment reflects respect for their role and could improve the overall quality of service in the real estate industry.

However, the 30-day payment window aligns with established vendor payment practices across the real estate sector, providing time for quality assurance, post-closing adjustments, and error corrections. This timeline also aligns with operational workflows and ensures smoother, error-free transactions.

Ultimately, the decision to pay NSAs at the time of service or maintain a 30-day payment schedule depends on balancing the need for fairness, professionalism, and practicality in a complex, multifaceted industry.

Written by Marcy Tiberio (see about page for bio) and Daniel Lewis

Daniel C. Lewis resides in Carmel, IN. He was named in 2010 Notary of the Year by the National Notary Association. He was also named in the same year an Honorary Secretary of State by the Indiana Secretary of State. Daniel is currently serving as the Executive Director of the Lewis Notary & Training Services Inc. Daniel is an entrepreneur, writer, video editor, Keynote Speaker and also the host of the podcast – “The Notary Podcast.”