The Directorate General for Legal Certainty and Public Faith analyses the possibility of cancelling a retention of title entry when the registered holder (a financial institution) has transferred the credit through securitisation (Art. 1. Facts). The conflict arises because the Registrar relies on the presumption of ownership under Art. 15.2 of Law 28/1998 to deny the cancellation, whereas the appellant argues that the entry is inaccurate as it no longer reflects the legal reality following the credit transfer. The resolution addresses whether the presumption of ownership prevents the rectification of an entry that has lost its underlying cause.
For individuals (buyers of vehicles subject to retention of title), the resolution is key to unlocking the free disposal of assets when the original creditor has assigned the credit to a securitisation fund without registering the subrogation. If the inaccuracy of the entry is recognised, the individual could request the cancellation of the encumbrance to avoid obstacles when transferring the vehicle before the DGT. For financial institutions, it highlights the importance of maintaining consistency between legal reality and the Registry of Movable Property to avoid challenges to their entries.
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