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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. The dispute concerns the validity of a special power of attorney granted by the Executive Committee of a banking institution to unilaterally execute deeds of discharge and cancellation (Facts I). The ruling analyses the chain of authority and the sufficiency of the powers attested before a notary for the discharge of the encumbrance.
For banking clients, this ruling reinforces legal certainty in mortgage cancellation processes involving special powers of attorney. It confirms that the accreditation of representative powers, even through the formalisation of management body resolutions into public deeds, is sufficient for registration (Facts I). This prevents registration delays when a banking institution acts through proxies with specific cancellation powers.
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