Commercial practices and consumer rights. Property sector (mortgages)

• These are public institutions,
• Run by registrars who are civil servants and legal professionals.
• They check the legality of contracts submitted for registration at their offices and also ensure that the persons who are parties to those contracts have the necessary legal capacity, in order to protect consumers in the property and commercial sectors.

The rights of citizens with respect to involvement in registry procedures:

• To obtain assistance during opening hours. Opening hours can be consulted on the notice board at the registry office.
• To request that the instrument or document submitted to the registry be issued within the legally prescribed time limits. The time limit for the registrar will be 15 working days for checking the legality of the document and registering the relevant information, thereby finalising the legal transaction between the parties and vis-à-vis third parties. It will not be possible to complete the formalities within those time limits if the document contains a defect.
  • Written notification is given of the issuing, classification and registration of documents. That notification, called a dispatch note, provides information on information proving that registration has been completed. In the case of moveable property, the time limit for classification is 8 working days.
• Legal complaint procedures in the event of negative classification of the instrument or contract submitted for registration:
  • Where a negative classification prevents the registration, recording or cancellation of a document, the person concerned may request that another registrar classify the instrument submitted.
  • Similarly, it is possible lodging an administrative appeal against classification to the Directorate General for Legal Certainty and Certification within one month.
  • Or bringing legal proceedings before the appropriate civil court.
• If a contract has been registered without a consumer’s consent, they may have recourse to the courts as the courts are the custodians of information in public registers.
• Making any complaints, claims or suggestions concerning the services provided, either by the Land and Property Registries or by the centralised services of the Association of Registrars.
  • The complaint procedure is not to be used for raising issues relating to classification and registration, or issues relating to public fees or charges, for which there are specific rules.
  • Complaints or suggestions may be submitted to any Registry Office, the Association of Registrars and its territorial and regional bodies in person or by post, email or fax.
  • All registry offices, the Association of Registrars and its territorial and regional bodies have complaint and suggestion forms available to the public.

• Property registrars may not register contracts or legal transactions seeking to include clauses that have been declared null and void by a judgment entered in the Register of General Contract Conditions.
• Accessible online and free of charge, the Register of General Contract Conditions provides:
  • Information on contractual terms regarded as standard contract terms. Those standard contract terms are drawn up by one of the parties to the contract and are generally incorporated into a particular type of contract. The law requires lenders to lodge standard mortgage agreements before they are marketed.
  • Information on final court judgments declaring certain contractual terms and clauses null and void.

• Concerning payments or fees:
  • The interested parties are entitled to request a clarification or explanation of the fees they must pay for the service provided by the registry.
  • The fees of registrars are determined by a public tariff schedule or rate and these can be consulted at registry offices. The fees are displayed on the notice board at the registry.
  • If the persons concerned are not satisfied with the information provided or the fee charged, they may lodge an appeal within 15 working days of notification or issue. The time limits and procedure are indicated at the bottom of the invoice.

Following the entry into force of Law 11/2023 on the digitisation of registry procedures, new provisions have been introduced concerning the rights of individuals in their dealings with the Land, Commercial and Movable Property Registries. In particular, the new citizens’ rights set out below have been incorporated.

a) The right for citizens to interact directly electronically, enabling them to send documents, obtain information and certificates, make enquiries, submit applications, give their consent, make payments, and appeal against registry decisions.

b) The right not to provide data and documents held in other legal registers; registrars may, in the interests of and on behalf of data subjects, use electronic means to obtain such information, which may only be used within the specific scope of the registration procedure for which it was obtained and for the purpose for which that procedure is legally intended.

c) Equality in electronic access to the services of the Land, Commercial and Movable Property Registers.

d) The right for citizens to be informed electronically of the status of any registration procedures in which they are involved, except in cases where the applicable regulations impose restrictions on access to information regarding such procedures.

e) The right to obtain electronic certificates of documents relating to registration procedures in which they are involved, and to request information electronically regarding any developments affecting their registered rights.

f) Retention in electronic format by the Land, Commercial and Movable Property Registries of electronic documents that are part of a registration procedure, for the period and under the conditions specified by the Directorate-General for Legal Certainty and Public Attestation, in accordance with the relevant regulations.

g) The right to use systems that are suitable for ensuring the identification of data subjects and, where applicable, the authenticity, integrity, confidentiality and non-repudiation of signed electronic documents or for any electronic procedure with any Land Registry, Commercial Registry or Movable Property Registry; in all cases, natural persons may use the electronic signature systems provided for in current legislation.

h) A guarantee as to the security and confidentiality of the data contained in the registries’ files, systems and applications, without prejudice to the publication of the register under the terms laid down by the legislation in force.

i) The guarantee of universal accessibility to information and electronic registry services in accordance with the current legislation in this area, so that everyone can exercise their rights on an equal footing, incorporating the necessary features to ensure accessibility for those groups that require it.

Finally, in order to facilitate the understanding of the registry institution, there are easy access guides to the land, commercial and movable property registries for the general public.

The Consumer Protection Registry Service assumes responsibility for acting as the PAE ( Entrepreneur Service Point ) of the Association of Registrars, in providing advice and services to entrepreneurs for the preparation, administrative processing and start-up of their business plans, as well as during the initial stages of their business activities.

Finally, given the existing interest in housing and its relationship with the real estate sector, a final mention should be made of the actions of property registrars in the rental field. Land registrars register rental contracts in the Land Registry, thereby providing legal certainty, protection against third parties (such as new buyers) and official publicity. They verify the legality of the contract (eligibility) and ensure that the rental terms are met.

Principal functions relating to rental agreements:

• Registering rental agreements: They allow rental contracts to be registered, which protects the tenant by ensuring that the new owner honours the contract if the property is sold.
• Tenant protection: They ensure the right of first refusal in the event of a sale and compliance with the statutory deadlines.
• Speeding up eviction proceedings: They facilitate a faster procedure for the owner to recover their home in the event of non-payment.
• Registration status: They check that the documents (generally a notarial deed) comply with the legal requirements for registration.
• Centralised rental register: Registration and management of information regarding short-term or temporary rentals to ensure visibility and regulatory compliance.

With regard to this last point, a property cannot be advertised online for short-term rental unless a rental registration number has been obtained from the Land Registry. As the registrar only issues such a number if all legal requirements are met, the lack of transparency and oversight that previously existed in this sector has been eliminated.