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BOE-A-2026-16228 ·25 July 2026 ·Resolution Low impact
Administrative

Ruling on the validity of powers of attorney for mortgage cancellations: analysis of Executive Committee authority

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 whether the powers granted to the Executive Committee of a banking institution are sufficient to unilaterally execute deeds of discharge and cancellation (Facts I). The ruling examines the chain of authority and the legal standing of the proxies to release properties from mortgage encumbrances.

In 1 key point

  1. Dispute over the registration of a mortgage cancellation deed due to alleged insufficient authority (Facts I) (Hechos I)

How it affects those involved

For banking institutions, the ruling emphasises the importance of correctly documenting the chain of authority and ensuring that the powers of their administrative bodies (such as the Executive Committee) are sufficient to perform acts of disposal, such as mortgage cancellations. For individuals, it affects legal certainty regarding the registration of debt cancellations, as the validity of the act depends on the technical legal standing of the proxy signing the discharge.

Lifecycle

2026-07-25PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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