What is a Notarial Certificate of Outstanding Balance?
A notarial certificate of outstanding balance (acta de fijación de saldo) is a notarial document that determines and certifies the outstanding balance of a debt or loan at a specific point in time. It is particularly useful for formalising the exact amount still to be paid on mortgage loans or other secured credit.
It is an instrument that provides legal security and certainty for both the debtor and the creditor.
When and how is it done?
- When the parties (usually the borrower and the bank or lender) wish to evidence the outstanding balance of a loan.
- It may be requested for the partial or full cancellation of a mortgage, subrogations or contractual amendments.
- It is formalised by means of a notarial record (acta), which is a public document with evidential force.
- The notary receives the information from the bank and records it in the certificate after the appropriate checks.
What does a certificate of outstanding balance before a notary involve?
- Official determinationThe outstanding balance is fixed and certified in a public document.
- Legal certaintyIt provides certainty about the exact amount to be paid, avoiding future disagreements.
- Evidential valueThe certificate has legal value before the courts and authorities.
- Basis for other actsIt is used for cancellations, subrogations, refinancing or agreements between the parties.
- Notarial involvementThe notary oversees the lawfulness and accuracy of the information.
Requirements for drawing up a certificate of outstanding balance
- A joint request or authorisation from the parties involved.
- Official information from the bank or creditor on the updated balance.
- Documents relating to the original contract or previous deeds.
- Identification details of the parties involved.
Main legal effects
- Certification of the debtThe certificate evidences the outstanding amount and its date.
- Basis for cancellation or amendmentIt facilitates subsequent acts relating to the debt.
- Prevention of disputesIt avoids disagreements about the amount outstanding.
- TransparencyIt ensures that both parties are aware of and accept the balance.
Advantages of having the certificate drawn up at a notary's office
- ImpartialityThe notary acts as an official public witness and guarantor of the truth.
- FormalityThe certificate is a public document and can be registered if necessary.
- SecurityIt reduces legal risks in financial transactions.
- TrustIt facilitates clear, documented agreements between the parties.