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A query is made as to whether the deed of release of mortgage liability on a property, following a partial payment of a loan secured by several properties, is exempt from AJD. The DGT responds that said deed is exempt from the tax.
Question posed: Whether the deed of release of mortgage liability pertaining to property B is exempt from the documented legal acts modality of the Tax on Property Transfers and Documented Legal Acts.
The public deed documenting the cancellation of mortgage liability on a property is exempt from the gradual levy of the documented legal acts modality. This exemption applies pursuant to the provisions of Article 45.I.B.18 of the Recast Text of the Tax on Property Transfers and Documented Legal Acts.
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