Credit Policies with Guarantee

The notarial credit policy can be formalized between individuals, companies, or with non-banking entities. It offers greater flexibility in terms and guarantees, although banks usually offer better interest rates due to their access to massive financing.

The notarial policy has executive force, which allows judicially claiming the debt through an execution process, much faster than an ordinary declaratory trial. Additionally, the notary controls legality and advises both parties.

Yes, the policy can include mortgage guarantee on a property. In that case, in addition to the notarial signature, the mortgage will be registered in the Property Registry.

Notarial fees depend on the credit amount and whether it includes real guarantee. The AJD tax must also be considered (in some autonomous communities). We provide a detailed quote without obligation.

ID/NIE of the parties, proof of property ownership if there is real guarantee, and documentation proving the transaction. We will inform you specifically according to your case.

Yes, it is very common to formalize credit policies between parents and children, siblings, or other family members. This provides legal security and avoids future conflicts, in addition to having favorable tax implications.

The notarial policy allows directly initiating a judicial execution procedure to claim the debt, without the need for a prior declaratory judgment. This greatly accelerates the recovery of the credit.

Yes, when the credit has been fully repaid, the policy can be cancelled before a notary. It is also possible to modify conditions through a novation, always with agreement from both parties.

An executive title is a document that allows directly initiating a judicial execution process without the need for a prior declaratory judgment. The notarial policy is an executive title according to article 517 of the Civil Procedure Act, which means that if the debtor does not pay, the creditor can judicially claim the debt much faster (months instead of years), seizing assets directly after a simple payment demand.

There are no legal limits, but due to notary costs, it is usually practical from 10,000-15,000 euros. For smaller amounts, a private contract may be sufficient. For very high amounts (hundreds of thousands or millions), the notarial policy provides special value due to legal and executive security. Each case is evaluated individually.

The credit policy is subject to the Stamp Duty Tax (AJD) in many autonomous communities, although some have it subsidized or exempt. The rate varies between 0% and 1.5% depending on the community. If it includes a mortgage, AJD does apply in all communities. Loan interest may have tax deductions depending on the destination of the funds. We advise you on the specific tax implications of your transaction.

It is not required by law, unless agreed in the policy itself. However, if it includes mortgage guarantee on a property, it is common (and advisable) to take out property damage insurance to protect the guarantee. For significant personal loans, some creditors require life and/or disability insurance for the debtor.

Yes, with current technologies it is possible to formalize credit policies remotely through advanced electronic signature and notarial videoconference, meeting all legal requirements. This is especially useful when lender and borrower are in different cities. The notary verifies identity via video call, explains the content, and the parties sign electronically with a digital certificate.

If the borrower is a commercial company, it is required to prove legal representation (deed of incorporation, current administrator appointments), verify that the competent body has authorized the transaction (general meeting or board for significant amounts according to bylaws), provide annual accounts to assess solvency, and sometimes personal guarantees from partners or administrators may be required (joint endorsements). The notary verifies all corporate documentation.

A credit policy certified by a notary has full executive force according to article 517.2.5 of the Civil Procedure Act. A simple commercial policy (private document with notarially legitimized signatures) is only an executive title if it acknowledges a liquid, due, and payable debt according to 517.2.4 of the Civil Procedure Act, but can be more easily challenged. The notarial credit policy is legally more robust, although its cost is somewhat higher due to full notarial fees.