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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal filed by the Official Credit Institute (ICO) against a decision by a land registrar in Alicante. The dispute arises from the suspension of the registration of various covenants in a corporate mortgage loan deed intended for the construction of affordable social rental housing (art. II). The appeal challenges the registrability of clauses regarding auction valuation, contractual definitions, and interest calculation formulas (art. III).
For financial institutions and real estate developers operating within social housing programmes (such as the ICO Housing and Urban and Rural Regeneration Programme 2022-2025), this ruling sets a precedent regarding the ability to register specific covenants in mortgages on surface rights (art. II). The technical dispute over the registration of valuation, amortisation, and interest calculation clauses affects the legal certainty of corporate mortgage guarantees (art. III).
The tax team reviews your specific situation.
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