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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal against a negative assessment by a Madrid Land Registrar. The registrar refused to register a mortgage foreclosure decree and the order to cancel charges because the auctioned property was registered in the name of third parties and the handover of the property to the successful bidder had not been proven (Art. 322 Mortgage Law). The dispute arose following the declaration of nullity of unfair clauses in a previous mortgage foreclosure proceeding.
For successful bidding banking entities, the ruling emphasises the need to provide reliable proof of the handover of the property and its tenancy status to achieve registration (Art. 322 Mortgage Law). For individuals affected by mortgage foreclosures, it confirms the importance of protection against unfair clauses and the complexity of charge cancellation processes when third parties hold registered rights.
The tax team reviews your specific situation.
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