The Directorate General for Registries and Notaries confirmed that the execution or foreclosure of a mortgage out of court is enforceable against third parties holding subsequent registry entries and results in their cancellation.
The Directorate General for Registries and Notaries holds that since Spanish law does not provide explicitly for any exclusion, the completion of an out-of-court sale is fully viable where third parties hold liens that have been registered subsequently. It is consubstantial with the in rem right of the registered mortgage that its execution, in any way provided by law, is enforceable against third parties, to the extent that the purging effect of the out-of-court execution and the subsequent cancellation of registry entries occurs even where it is not expressly requested. Affected third parties are safeguarded through appropriate notice,8 so they can exercise their legal rights if they wish. Also, to ensure the equal weight of the interests of the creditor, debtor, owner and third parties, the mortgage creditor carries out this duty under the supervision of the notary, whose actions are strictly regulated.