BOE-A-2026-6846 ·24 March 2026 ·Resolution Low impact
Tax

Companies with verbal proxies: subsequent ratification is invalid for land registry entries

The Directorate General for Legal Certainty and Public Faith confirms that the ratification of a verbal mandate does not have retroactive effects against third parties for the purpose of land registry entry (Art. 1727 Civil Code). In this instance, the refusal of the Mula Registrar to register a surface right is upheld due to insufficient representation at the time the deed was executed. The resolution emphasises that legal certainty prevents acts performed without valid legal representation from being subsequently rectified for the purposes of registry publicity.

In 2 key points

  1. The ratification of a verbal mandate has no retroactive effect against third parties for land registry purposes, Art. 1727 Civil Code (art. 1727 Código Civil)
  2. A contract entered into by someone lacking authorisation or legal representation shall be void, unless ratified, Art. 1259 Civil Code (art. 1259 Código Civil)

How it affects those involved

For companies (such as Cobra Concesiones, SL), using verbal agents without formalised legal representation at the time of signing public deeds results in the inability to register rights over land (Art. 1259 Civil Code). The risk involves the nullity of acts against third parties and a lack of registry protection, as subsequent ratification does not produce retroactive effects for registration purposes (Art. 1727 Civil Code).

Lifecycle

2026-03-24PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.
PDF on boe.es

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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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