Minutes of settlement of the balance : Notary Jesús Benavides
Real estate and mortgage

Balance fixing act

Step 1

What is a balance determination act?

This is the notarial document in which, at the request of the creditor of an unpaid loan, the exact amount owed by the debtor for all concepts is determined and verified, with details of the specific calculations that determine that figure, thus taking into account all possible concepts (capital loaned, ordinary interest accrued, interest on arrears generated, or any other concept owed) that were established at the time the loan was originally contracted.

Step 3

How much does it cost to formalize a balance settlement deed before a notary public?

The following calculator offers the creditor the possibility of knowing in advance with great accuracy the notarial costs involved in notarizing a settlement of the balance before a notary. This calculator has the corresponding notarial fee parameterized. Simply enter the required variables.

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Step 4

More frequently asked questions

What is and what is the purpose of a Balance Accreditation Statement?

It is a reliable document, drawn up by the Notary, which determines the outstanding and unpaid balance of a loan or credit at a certain date, i.e., the amount owed by the debtor for all concepts at that specific moment.

This document is essential in order to be able to claim this debt judicially, through the so-called executive process, when this has been expressly agreed in the loan contract in question.

Who can require the Notary to perform a Deed of Accreditation of Balance?

Any creditor who is the holder of an unpaid loan may request the Notary Public to authorize the act of fixing the balance, as long as this procedure has been agreed upon in the loan contract.

Can a natural person request the Notary Public to issue a Deed of Accreditation of Balance?

Of course, if the creditor is not a company, but an individual person, and in the loan contract this way of proceeding in case of non-payment has been agreed, there is no impediment for the Notary to be requested to authorize the reliable document of liquidation.

Is it necessary to go to the notary's office to sign the "Acta de Acreditación de Saldo"?

It is not necessary for the creditor's representatives to go to the Notary's office to sign the deed, since the initial request signed by them already grants the Notary sufficient powers to issue said document without the creditor's intervention being necessary again.

What documentation must be provided by the creditor in order to authorize the balance determination?

In the first place, the creditor must address a request to the chosen Notary Public to carry out the requested work. This request will be made by means of a written request in the form of a letter, signed by the creditor, in which, accrediting his representation and legitimacy, he formally requests the Notary to authorize a settlement of the balance of an unpaid debt.

Together with this formal request, the creditor must accompany:

  • The executory title or titles, i.e., the public deed or notarized policy in which the credit operation was formalized.
  • A certification, duly signed by the creditor, specifying the balance due to the debtor.
  • The accounting or financial documents containing the details of the calculation of the amount demanded, with specific specification of the origin of each amount claimed, as well as the calculations made for such purpose.
  • In the event that the loan contract does not specify the applicable interest rates or commissions, documentary detail of the rates and commissions applied.
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If all the documentation is correct, what will the Notary do?

If all the documentation provided is correct, so that the necessary requirements are met (i.e., that the parties had agreed to this procedure in case of default on the loan they formalized) and the calculations have been made correctly, the Notary will authorize the document, making the positive result count by means of a diligence, in which he will express:

  • The data and references that allow the identification of the interested persons, the enforceable title and the documentation examined by the Notary.
  • The positive judgment in accordance with the liquidation has been made as agreed by the parties in the executory title.
  • That the balance specified in the certificate issued by the creditor, incorporated in the liquidation act, coincides with the balance appearing in the account opened with the debtor.
  • That the reliable document is extended for the purposes of articles 572 and 573 of the Civil Procedure Law, that is to say, to include it in the framework of an executive judicial process for claiming a monetary amount.

With all this, once the creditor already has the reliable document or the balance liquidation act, it will be able to incorporate the same to the executive judicial process, in order to obtain the intended executive protection and, in short, to recover the money that at the time it lent to the debtor and that has not been paid.

What happens if the legal requirements are not met?

The Notary required, by operation of law, must verify that the amount expressed in the debtor's certification is correct, so that he must ensure that all the conditions (interest rate, calculation of the same, etc.) that the parties agreed in the loan contract have been applied.

Therefore, only if this is the case will the Notary Public authorize the balance settlement, while, on the other hand, if the settlement is not correctly carried out (because, for example, a higher amount is being claimed, undue interest is being applied, items not foreseen in the loan contract are being claimed, etc.) the Notary Public will refuse to authorize the settlement, with the result that the creditor will not be able to properly file the executive judicial process to claim his debt, since without this obligatory document this will not be possible.

Likewise, it must be taken into account that, in any case, if the settlement of the balance is authorized, but it contains a calculation error, the debtor party may point this out in the corresponding executive process, which, if applicable, may result in the enforcement order not being issued, since the exact amount due to be enforced has not been correctly determined.

Can the notary's office be responsible for notifying the debtor and the guarantor of the amount due in order to comply with the provisions of article 573.1. 3º LEC?

In the event that the creditor entity has not made the appropriate notifications to the debtor (and to the guarantor, if any), the Notary's Office may make them on its behalf and attest it by means of a Notification Act.

Step 5

Where can I consult the applicable regulations?

Step 6

Make an appointment