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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal regarding the registry classification of a sale and purchase deed. The case examines the validity of a fideicommissary substitution and the interpretation of the testator's intent concerning the establishment of a foundation (Facts I and II). The ruling determines that the foundational intent cannot be construed as an obligation for heirs to complete the incorporation process in the absence of formal registration (Facts II, section f).
For heirs and legatees, the ruling limits the Administration's ability to impose an obligation to complete foundational processes based solely on intent expressed in a will (Facts II, section f). For succession law professionals, it highlights the importance of precision in fideicommissary substitution clauses and the risks associated with the lack of registration for foundations in formation (Facts II, section f).
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