TITLE BY BAD FAITH AND UNSETTLED ESTATE. SOME QUESTIONS ABOUT THE ARTICLE 205 OF SPANISH MORTGAGE ACT

Abstract

The article 205 of Spanish Mortgage Act legitimizes the first entry in the Registro de Propiedad of a public title irrefutable proof of status has been sold. When this title derives from the bad faith, the practical consequences may be harmful for the true owner or for the bank even though both have acted diligently by reference to the registry record. The possibility that the true owner declared invalid registered title ex article 205 Spanish Mortgage Act within two years, the retroactive effect of the judgment and the temporary dysphasia of the anotación preventiva can create complicated situations. This study attempts to clarify this offering a possible solution and also a reforming proposal of the incomplete current legislation.