Skip to content
BOE-A-2026-14988 ·9 July 2026 ·Resolution Low impact
Tax

Ruling on the registration of covenants in business mortgages for social housing

The Directorate General for Legal Certainty and Public Faith has ruled on an appeal filed by the Official Credit Institute (ICO) against a land registrar's decision. The dispute arises from the suspension of the registration of various covenants in a mortgage loan deed intended for the construction of social rental housing (art. II). The appeal specifically challenges clauses regarding auction valuation, definitions of financial terms, and interest calculation formulas (art. III).

In 2 key points

  1. The appeal is limited to covenants regarding auction valuation, financial definitions, and interest calculation formulas (art. III). (art. III)
  2. The loan is part of the ICO Housing and Urban and Rural Regeneration Programme 2022-2025 (art. II). (art. II)

How it affects those involved

For credit institutions (in this case, the ICO), the ruling affects the legal certainty of contractual covenants in business mortgage loans intended for social housing programmes (art. II). The dispute over the registration of auction valuation clauses and interest formulas impacts the enforceability of mortgage securities. For development companies, the registry's decision determines the effectiveness of the financial terms agreed upon in their construction loans (art. II).

Lifecycle

2026-07-09PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact