Balance determination minutes

In this document issued by a Notary, the exact amount that a debtor is responsible for paying to their creditor is certified, and the concepts leading to this amount are detailed. These may include the total loaned capital, accumulated interest, late fees, or other outstanding amounts up to the moment of signing. The record involves only one party, the unpaid creditor, who requests the authorisation of the record.

Therefore, the balance determination record usually relates to loan or credit agreements. When such a contract explicitly included the judicial claim of the debt, it is possible to use the record to initiate an enforcement procedure, whether extrajudicial or judicial, to demand the repayment of the amount. They are usually issued for debt collection or mortgage foreclosures.

It is common for the parties involved in the balance settlement records to be companies that prepare them at the end of a working relationship with their service provider and even suppliers. It also usually occurs between public and private entities for work and service contracts that end their working relationship and settle the outstanding balances.

One of the most common examples of a balance fixing record is in mortgage foreclosures. In this case, financial institutions are the ones that require this document to request the issuance of judicial or extrajudicial enforcement.

In mortgages, it is very important to check for abusive clauses to determine the authorisation of the record. These provisions, such as the early maturity clause, complicate the procedure, especially if they are confirmed as such in a ruling.

It begins when the creditor sends a document or a letter signed by him to a Notary requesting the official authorisation of the record where the amount owed by the debtor will be officially determined.

To authorise the deed, the creditor must provide all related documentation which we will summarise later. These will include both a request letter signed by the bank with an original authenticated signature, the original loan deed, as well as debt certificates and accounting statements containing the amount owed as stated in the certificate.

For the Notary to authorise the balance determination deed, they must verify if the calculations are correct, taking into account quantitative finances, the interest rates mentioned above, and other related clauses such as any applicable fees.

If the documentation provided and its data are correct, on the day the Notary authorises the deed, the presence of the creditors or creditor entity will not be necessary. The same document requesting the formal authorisation empowers the Notary to issue the document.

After this, the Notary opens a proceeding where the above is stated. With the deed document, it is possible to initiate an enforcement judicial process to demand the outstanding amount to be paid to the creditor. This procedure is framed within the Civil Procedure Act (articles 572 and 573).

It may happen that the record does not meet the required legal requirements, that is, that an incorrect calculation of the outstanding debt has been made intentionally or not. In this case, the Notary will not authorise the record and the necessary legal process for the satisfaction of the debt will not proceed.

Indeed, if there were a calculation error it can be corrected by requesting the authorisation of the minutes again and submitting the documentation without errors.

In this case, the debtor can notify it during the procedure and it can be determined that the enforcement process known as despacho de ejecución is not initiated.

Finally, in the challenge of the balance determination record, we generally find the objection or disagreement with the content of the record by the debtor, as they consider that the total calculation or some of its data are not correct, there are unknown concepts or inaccuracies. A written statement must be submitted to the Notary who authorised it, detailing the specific reasons and providing evidence. If there is an ongoing judicial procedure, it will be submitted to the judge handling the case. If the challenge is accepted, the record must be corrected or annulled.

The Notary is an impartial figure who guarantees the legitimacy of the notarial documents involved, without taking sides with any of the parties, attesting to the facts and acting within the law. 

Their role is key in the issuance and authentication of the record, as they ensure compliance with legislation and protect creditors and debtors. The verification and certification of the documentation concludes a transparent process that complies with legal regulations, resulting in a document with evidential value that can be used in judicial proceedings. It confers public faith on contracts and extrajudicial acts.

Therefore, in balance determination records, the Notary guarantees compliance with the law and the protection of debtors, as a neutral third party between creditor and debtors, verifying that the debt calculations are correct and in accordance with the law.

They are the drafter of the record if it is authorised and certify the accuracy of the document. This will conclude with their signature and seal to grant it the public character and evidential value required, so that it can be used as objective evidence for the debtor in courts.

To process the balance determination deed, the following documents must be presented to the Notary.

• Formal request from the creditor to the Notary with an original signature notarised.
• Certificate with the total amount and details of the outstanding debt along with accounting statements certifying it.
• Original loan deed or policy containing all the agreed requirements.
• In the case of variable loans, identification of the value of the reference index at each moment.

The price of this procedure is stipulated by the Notarial Tariff and certain aspects such as the number of pages, the authorised and simple copies issued, diligences, and the consultation in the Commercial Registry.

We suggest you contact us to prepare your personalised quote. You can do so through the contact form on the main page of this website, via the contact section found in the footer of the website, using the direct WhatsApp access at the bottom right of this page, by sending an email to bcn@jlanotarios.com or by calling us at 93 159 17 62.