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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal against a Land Registrar's qualification note, which suspended the registration of a court judgment (Art. 18 Mortgage Law). The judgment dismissed a claim seeking to recognise the transfer of use of a business premises derived from a lease agreement. As the original lease agreement was not registered in the Land Registry, the Registrar applied the rules governing registry qualification (Art. 98 Mortgage Regulations).
For tenants or assignees seeking to register rights derived from unregistered lease agreements, this ruling reinforces the requirement that the principal right (the lease) must be previously recorded in the Registry for its derivative rights to be noted (Art. 20 Mortgage Law). This presents a legal uncertainty risk for those operating with transfers of use based on unregistered private contracts.
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