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BOE-A-2026-12685 ·11 June 2026 ·Resolution Low impact
Tax

Resolution of 18 February 2026, of the Directorate General for Legal Certainty and Public Faith, regarding the appeal against the refusal of

The Directorate General for Legal Certainty and Public Faith has ruled on an appeal against a registrar's refusal to register a mortgage cancellation. The resolution examines the validity of a borrower's representation acting on behalf of the bank through a special power of attorney and corporate resolutions from the entity's Executive Committee (Facts I). The case focuses on the effectiveness of irrevocable powers of attorney to unilaterally execute deeds of discharge and registration cancellation.

In 2 key points

  1. Validity of representation through special powers of attorney and Executive Committee resolutions for mortgage cancellation (Facts I). (Hechos I)
  2. Use of zero-balance certificates issued by the banking entity to prove the discharge of debt (Facts I). (Hechos I)

How it affects those involved

For mortgage holders, the resolution reinforces the legal certainty of cancellation mechanisms via powers of attorney granted by the banking entity (Facts I). Land registrars must assess the sufficiency of representative powers when using notarised corporate resolutions for the unilateral cancellation of encumbrances.

Lifecycle

2026-06-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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