BOE-A-2026-14306 ·1 July 2026 ·Resolution Low impact
Tax

Property Registrars: cannot assess contractual simulation or disguised financing unless evident from the document

The Directorate General for Legal Certainty and Public Faith has overturned a registrar's refusal to register an option to purchase deed. It has been established that a registrar cannot make substantive judgments regarding the parties' intentions, such as alleging a simulated transaction or disguised financing, unless the simulation is evident and directly apparent from the document itself (Art. 18 of the Mortgage Law). In this instance, the lack of connection between the companies involved and the autonomy of legal transactions preclude a finding of simulation.

In 2 key points

  1. The registrar cannot assess contractual simulation unless it is evident from the document itself without external assessments (Fundamentos jurídicos)
  2. Registral assessment must be limited to the legality of extrinsic forms and the capacity of the grantors (art. 18.1 Ley Hipotecaria)

How it affects those involved

For companies and individuals engaging in option to purchase or refinancing operations, this ensures legal certainty against subjective interpretations by the registrar regarding the parties' intent. Registrars must limit themselves to the extrinsic legality of documents and the capacity of the grantors, without making economic or functional assessments that exceed their competence (Art. 18 of the Mortgage Law).

Lifecycle

2026-07-01PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.
PDF on boe.es

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