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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal against a land registrar's refusal to register a mortgage cancellation deed. The dispute concerns the validity of the powers granted by the Executive Committee of Banco Santander, S.A. to act unilaterally in signing discharge letters and cancellations (Facts I). The ruling analyses whether the powers accredited through the formalisation of corporate resolutions as public deeds are sufficient.
For banking institutions, the ruling emphasises the importance of a correct chain of authority and the formalisation of administrative body resolutions as public deeds to ensure the registrability of mortgage cancellations (Facts I). For individuals, it affects legal certainty in the process of discharging land registry charges following the repayment of mortgage loans.
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