The Directorate-General for Registers and the Notarial Profession relaxes the requirements for registration of assets acquired during insolvency proceedings

In a decision rendered on October 24, 2018, the Directorate-General for Registers and the Notarial Profession (DGRN) relaxed the requirements for registration of assets acquired during insolvency proceedings, and specifically, during the liquidation phase.

The DGRN concluded in this decision that the sale of a property must be registered even if it did not conform to the court-approved liquidation plan and did not receive express court approval.

Specifically, in the examined case, and even though the requirements in the liquidation plan were not satisfied exactly to the letter, an order was made to register the sale by arguing, from one angle, that the liquidation plan's clauses must be interpreted with the meaning most likely to produce effects, and from another, that implicit acceptance by the judge and the creditors of the system followed for the sale of the property could be inferred from the request submitted by the insolvency receiver and from the judgments rendered by the court (even though they did not have decision status).

This is therefore a new step forward by the DGRN in seeking to strike a balance between the necessary rigor that must prevail in the Spanish registration system and the legal certainty needed for the recipients of assets during insolvency proceedings.