The Directorate General of Legal Security and Public Faith has confirmed the suspension of a registry entry intended to re-register a property in favour of the seller following the termination of a sale contract due to non-payment (Facts I). The ruling establishes that, to cancel subsequent entries and re-register the property, it is mandatory to deposit the amounts owed to protect third parties holding encumbrances (Art. 175.6.ª Mortgage Regulations). A penal clause allowing the seller to retain received funds is insufficient, as the protection of subsequent encumbrance holders must be guaranteed (Art. 175.6.ª Mortgage Regulations).
For selling companies with resolutory clauses, the ruling emphasises that a penal clause for retaining amounts does not exempt them from the obligation to deposit funds to protect creditors with subsequently registered encumbrances (Art. 175.6.ª Mortgage Regulations). For holders of subsequent encumbrances (attachments, mortgages), the ruling reinforces legal certainty by preventing the termination of the main sale from erasing their rights without them having had the opportunity to intervene or be compensated (Art. 175.6.ª Mortgage Regulations).
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