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The Directorate General for Legal Certainty and Public Faith has analysed the suspension of the registration of an award decree following a mortgage foreclosure. The Registrar suspended the entry because, despite a court order recognising the tenants' right to remain on the property until 2029, formal notice to them had not been proven in accordance with Article 25.5 of the Urban Leasing Act (L.A.U.). The ruling emphasises that occupation rights declared in incidental proceedings of an enforcement process do not have erga omnes effect without a specific judicial declaration.
For companies awarded real estate through mortgage foreclosure processes (such as Ganados Lo Tilli, SL), the presence of tenants with judicially recognised rights of occupancy requires proof of formal notice of the award to enable the registration of the title in the Land Registry. Failure to comply with this notification requirement (Art. 25.5 L.A.U.) results in a registry block that prevents the consolidation of ownership against third parties.
The tax team reviews your specific situation.
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