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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal filed by a notary against the refusal of the Fuenlabrada No. 3 Land Registrar to register a mortgage cancellation deed. The dispute arose regarding the validity of the banking entity's powers of representation to issue the discharge letter unilaterally. The resolution examines whether the powers granted by the Executive Committee of Banco Santander, S.A. were sufficient to proceed with the registration of the cancellation.
For banking institutions, the ruling confirms the validity of powers granted by administrative bodies (such as the Executive Committee) for the unilateral management of mortgage cancellations, provided they are expressly stated in the powers of attorney (Facts I). For property owners, this guarantees the ability to register the discharge of the mortgage charge through the actions of the lending entity without requiring their physical presence.
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