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The Directorate General for Legal Certainty and Public Faith has ruled that, to comply with the Mortgage Law, it is sufficient for the loan deed to expressly state that the mortgaged property does not constitute the mortgagor's primary residence (legal grounds). The resolution overturns a registrar's refusal which had required a distinction between whether the property was the debtor's personal primary residence or a family residence (legal grounds).
For notaries and registrars, the ruling clarifies the scope of Articles 21.3 and 129.2 of the Mortgage Law, preventing excessive requirements for precision regarding the distinction between personal and family primary residences (legal grounds). For individuals and banking institutions, it facilitates the registration of mortgages on residential properties that are not classified as primary residences, streamlining the registration process.
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