Notice of a property affected by an insolvency proceeding

1. Does your national system admit such restriction?

This land register system envisages this kind of notice or includes the possibility of registering a notice as such

2. In your system, once registered this restriction, does it block or freeze subsequent registrations (mostly the ones promoted by the owner of the property) until being removed?

It is analyzed in question 5.

3. In your system, in principle, will the registration of this restriction be temporary (under a deadline) or indefinitely (it will be in force until being removed)?

Depends. It can be temporary or indefinite, since it can be registered as a notice, in which case is temporary (4 years) or as a definitive registration.

4. Indicate the national legal sources about this judicial restriction

• Act on Insolvency (https://www.boe.es/eli/es/l/2003/07/09/22/con), especially Article 24.4.

5. Please, give us an idea about the characteristics of the registration of this restriction in your system

In Spanish system there are 3 stages in insolvency proceeding. Every stage can be registered.

The effects of the registration in each stage are different:

1. Initial Stage: Declaration of Insolvency

• • Sentence is appealable. Subsequent registration promoted by the owner of the property and seizures dated after the insolvency procedure registration are BLOCKED.
  • Sentence is not appealable. Subsequent registration related to the property are NOT BLOCKED if:
  • They are done by the insolvency administrator and with judicial authorization; except if the property or estate is necessary for business continuity (which has to be declared by the judge).
  • They are dated before the insolvency procedure registration.

2. Agreement Stage:

The agreement can be registered. It can include limitations to acts promoted by the owner of the property.
But disposal acts contraries to these limitations, are NOT BLOCKED. But the third party is not going to be protected in case that a reintegration act is executed.
Singular executions cannot be performed.

3. Liquidation Stage:

Subsequent registrations promoted by the owner of the property are BLOCKED.
The power of administration and disposition of the owner of the property is replace by the insolvency administration.
Every disposal act is aimed to satisfy creditors.