The Directorate General for Legal Certainty and Public Faith has upheld the refusal of a filing entry for the cancellation of a vehicle's retention of title. The registrar denied the application because the submitted document was not capable of triggering a registry operation under Article 246.3 of the Mortgage Law. To proceed with the cancellation, the original document signed by the financial institution must be provided, featuring a bank-verified or notarised signature, in compliance with Law 28/1998 and the Installment Sales Registry Ordinance (Article 420.3 of the Mortgage Regulations).
For individuals seeking to cancel a retention of title upon contract expiry, merely alleging creditor inactivity or the passage of time (14 years in this instance) is insufficient. The affected party must present formal documentation that strictly adheres to the models and notarised signature requirements mandated by installment sale regulations (Articles 1.1 and 7.3 of Law 28/1998). A simple request for cancellation based on expiration, without the appropriate supporting documentation, will be denied by the registrar.
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