Beneficiary statement – In practice, this legal term finds application within the area of Financial Law. There it details a statement or certificate, issued by the lender of money (usually a bank institution). Where they officially detail and confirm the outstanding amount of money plus interest still due. In other words – the whole amount due up to a present date by the borrower. In the conveyance procedures, where a property seller wants to sell a mortgaged apartment, they obtain a beneficiary statement from the bank. Where the bank details two things:
1) how much money the debtor still owes to them.
2) And a promise that if the stated amount is paid to them, then they will remove (clear) the existing mortgage on the property.
So in this way, with this document, the buyer can have the security that if they pay this sum to the bank, the creditor will remove the mortgage.
Somewhere called also “payoff certificate” or “statement of condition” – these all have the same meaning.
