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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal against a registrar's refusal to register a mortgage cancellation deed. The dispute concerns the sufficiency of the representative powers held by an attorney for Banco Santander, S.A., who acted to grant a discharge letter and cancellation following the extinction of the debt (Facts I). The ruling analyses the chain of powers of attorney and the validity of the Executive Committee's resolutions regarding the management of these cancellations.
For individuals with cancelled mortgages, the ruling emphasises the importance of correctly proving banking representation in cancellation deeds to avoid registration blocks. For financial institutions, it confirms that their powers of attorney and resolutions from governing bodies (such as the Executive Committee) must grant express authority for the unilateral cancellation of encumbrances (Facts I).
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