An outstanding debt certificate is a document which banks issue at the borrower’s request to certify the value they still have to repay on their total mortgage.
The certificate must be issued, within a maximum period of seven calendar days from its request.
The public deed of sale must contain the seller’s declaration of being up to date with the payment of expenses.
The provision of the certificate is an essential requirement for the execution of the public deed.
And it will only be released from its obligation if the buyer expressly exonerates it.
The latter decision would position the buyer in a significant risk case.
Since it is exposed to the community may demand the payment of the expenses that were pending before the date of transmission.
For legal certainty, we recommend that the date of issuance of the certificate be as close as possible to the day agreed for the signing of the public deed of sale.
Since it certifies the status of debt on its date of issuance and not on the date of signing of the deed.
The level of investment in markets often indicates:
The stock market is a mechanism in which citizens and companies concur to invest in securities that eventually produce a profit or to attract financial resources from those who have it available. Those who attend to raise funds are called issuers and those who have available resources to finance are called investors.
In the stock market, negotiable securities are traded, call it stocks, bonds, short-term instruments, etc.
From its issuance, first placement, transfer, until the expiration of the title.
The securities, as the case may be, grant rights to participating in the company’s profits (dividends).
The interesting thing is that the stock market offers various financing and investment alternatives according to the needs.
That issuers or investors may have, in terms of performance, liquidity, and risk.
Following are some of the level of investment in markets:
The stock market is made up of the primary market and the secondary market.
The primary market is so named because the first issues of debt or equity securities that are issued by companies seeking financing are traded there.
The issuance is made through the primary public offering.
What is the secondary market?
Now, it could be thought that investing through the stock market is problematic in that the investor would have to wait until the company repays its debt before being able to recover its investment.
This is not the case thanks to the existence of the secondary market, in which the already issued securities can be traded.
Once the security is in the hands of an investor, he can sell it to another and get money in exchange, and in turn, this other investor can sell it to another, and so on, forming the secondary market.
What types of secondary markets exist?
There are several secondary markets, such as stocks, mortgages, bills of exchange, and credits in general.
The most important organized secondary market is the Stock Exchange.
A secondary market that is important to promote is that of mortgages.
It allows banks to obtain liquidity through the sale of their mortgage loan portfolios, helping to democratize credit.
Which best describes why investing can be such a challenge?
As you already know, investing is the best way to get your money to grow.
However, all investment assets involve some type of risk.
So, when planning your strategy, you must be clear about what these risks are and how you can minimize them.
In general, we explain the most important ones:
Systemic or market risk:
It is a type of risk that affects the market as a whole, regardless of the companies in which it is invested or the sector to which they belong.
For example, wars, economic crises, or changes in interest rates are market risks because they affect all types of investments.
It is a particular risk for each company. That is, the risk is conditioned by a series of factors unique to each company.
This type of risk does not affect the market as a whole, only the company in question.
For example, the imposition of a tariff in the destination country would be a non-systemic risk for an exporting company.
Liquidity is the ease with which an asset is converted into money.
By investing we take a liquidity risk because there may not be a buyer willing to purchase our assets when we decide to sell them.
This situation would lead the seller to try to sell cheaper, reducing his profit, or even incurring losses.
It is also known as default risk or counterparty risk. It refers to a situation in which the entity to which you have lent money is not able to return it.
In other words, it would occur when the investor fulfills his obligation in the sale and purchase operation but the other party does not.
This is a risk foreign to the markets. The legislative risk falls on governments, as they are the ones that have the authority to modify or create laws that may affect different companies.
To avoid this, it is advisable to invest in companies that operate in stable countries and under laws that are already in force.
Interest rate risk:
It is a systemic risk to take into account. When investing, there is always a very significant risk associated with interest rates fluctuating.
It affects all types of assets but is especially noticeable in fixed-income investments, such as bonds or preferred stocks.
If the inflation rate of an economy grows, we run the risk of exceeding the profitability of our investment.
For example, if inflation is at 5% and our average profitability is 4%, we would be losing purchasing power.
The return on investment would be negative and our purchasing power lower.
Although these are the most important risks that any investor faces, they are not the only ones.
Operational risks are also assumed due to human or computer failures, risks from falling asset prices, or risks derived from a possible natural catastrophe or a terrorist attack.
The list of factors that we should take into account when structuring our investment portfolio is enormous.
Do not hesitate to raise any questions that arise in the comments.