25 Feb A discharge of mortgage – what does this mean?
Most people, when buying a property, will require a mortgage on the property. This mortgage is always registered onto the property’s title during the initial conveyancing process. Registering the mortgage on the title protects the bank’s interest in the property so that when a property is sold, the the owner must repay the loan to the lender.
When the loan is repaid, the lender ‘removes’ or ‘discharges’ the mortgage from the property’s title to give the new purchasers a ‘clean’ title.
In the event that a loan on a property is repaid in full, the mortgage is not automatically removed or discharged from the property’s title. The mortgage remains as an interest on the property’s title until your lawyer acts on your behalf to apply to have it removed or discharged.
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