Act 8/2021 makes it possible to sell an inherited property straight away

What did Article 28 of the Mortgage Act involve?

Until recently, when a property was acquired by inheritance, its registration in the Land Registry was subject to Article 28 of the Spanish Mortgage Act (Ley Hipotecaria), which suspended the effects of ownership against third parties until TWO YEARS had passed since the death.

The reason for this rule was that further heirs or forced heirs might appear and claim their inheritance rights.

In practice, the property acquired by inheritance was registered, but with a preventive annotation stating that it was subject to the Article 28 clause.

What were the consequences?

Because of this annotation, anyone acquiring the property during the two years after the death — banks, buyers and others — was not protected by the Land Registry. If a successor with a better right to the property appeared later, the sale or the mortgage could be rendered ineffective.

As a result, selling the property during the two years after the death was constantly hampered.

What is the effect of its repeal? Is it retroactive?

Act 8/2021 of 2 June, in force since 3 September 2021, abolished the Article 28 restriction entirely. The acquisition and registration of an inherited property now has full effect against third parties from immediately after the death.

Where properties were registered with the preventive annotation under the old rules, the owners can request its cancellation. If the Land Registry refuses, we recommend lodging an appeal.