It is a good idea to get the loans notarized.

However, when you utilize the services of a notary, the document has to be signed by BOTH parties in front of the notary.

The notary stamp does not make the document "legal", but it confirms that the signatures on the document are those that they purport to be. That is important.

For example, you loan XXXXX XXXXX $2500.00 He signs the document John X Smith. Later, he defaults on the loan and claims that he doesn't owe any money because he is NOT XXXXX XXXXX....he is John X Smith.

When a notary watches the parties sign and then puts his/her stamp on it, he/she is verifying that the document was signed in her presence by the parties.

To be DOUBLE safe, you may also want to get 2 witnesses to the document. The witnesses verify that they saw the parties to the document sign it in their presence.

You want as much protection as possible. So, get the loan notarized by a registered notary and make sure that you show the notary ID when you sign.

If it is not notarized, the document may still be legal, but it leaves an opening for debate when it comes to the signature.

The legality of the loan is found in the contents of the loan. It should have the parties names, the amount to be loaned, a schedule for payment, an amount of payment, interest (if any) and a default provision whereby the entire loan comes forward if a payment is missed. Those are minimum provisions. Also, a party must be at least 18 to enter into a contract.

Hopefully you'll be ok. Again, a notary is not necessary but may be preferred.

You may wish to contact an attorney who specializes in contract law to put your mind at ease. You can contact your local bar association for a referral. It may give you 2 or 3 names. You can contact the attorney(s) for a telephone consultation, or ask to set up an appointment to discuss the specific facts of your case. Sometimes, these consultations are free.

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Legal Disclaimer: The answer provided herein is for informational purposes only and should not be considered legal advice. No claim is made that I am licensed to practice law in the state or jurisdiction where this information is being provided and you should always seek legal counsel admitted to practice in your local jurisdiction for representation and advice on any legal matter.