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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal against the suspension of the registration of a mortgage cancellation deed. The resolution examines whether the representation of a document management company (Gestión Documental Euskadi, S.L.) is valid for acting on behalf of a banking institution (Kutxabank, S.A.) in the cancellation of a mortgage loan.
For banking institutions, the resolution confirms the viability of using document management companies as proxies for processing mortgage cancellations, provided that the chain of authority is duly proven and registered (Facts I). For registrars, it establishes a precedent regarding the review of legal standing in mortgage loan cancellation deeds.
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