Notary real estate in Quebec : In real estate law, a mortgage discharge is very necessary sometime. Some see it as a mandatory wrong. But what exactly is it? Wouldn’t a release be a more appropriate solution?
Mortgage discharge – Release – Receip
Receip and everything around it
If you have a mortgage on a property, you will need sometime a receip. It is an act in which any lender acknowledges that he received any money that was due to be returned to it. In which situations you must have a receipt? First, when you’re done paying off your mortgage. When you have finished paying the bank, the mortgage can remain in the land register, if you don’t radiate it.
As a result, the banking institution retains the rights to your property. So, it’s very important to go to your notary and require from him to ask to your lender for a receipt to prove that you have paid your mortgage in full. Another situation requiring a mortgage discharge is when you want to sell your property. Indeed, it is your duty to give to the new buyer an immovable free from any previous charges.
Finally, you will need a release if you want to refinance your property. Your bank may then ask to remove the other mortgages from your property to ensure that it receives the payments and they have a 1st rank mortgage on your property.
Does the bank have the right to refuse to sign a receipt or release? The lender is required to sign a receipt document once the mortgage on the house is fully repaid, or a release in other situations.
Possibility of a release
Release is not quite like a receipt. If the latter relates to the certification of amounts paid and the discharge of duties it holds, the release suspends the duties held by a lender, but does not confirm that the entire mortgage has been paid in full. For you, it is useful to ask a release if you own several properties under security or if you want to withdraw a mortgage without having to pay it off in full.
Another question to ask is: what is the rate that the notary offers for a release or receipt? In general, notaries in Quebec charge between $500 and $900 to make the document depending on the complexity. Of this rate, a part is included to go to the Land Registry Office for registration in the Land Registry and for the research purpose.
Conclusion
Receipt and release are two elements of real estate law that often go unnoticed. The receipt is proof that you have paid off your mortgage in full, while the release is proof that the creditor has suspended his rights to your property. In any case, it is wise to ask your notary for the best advice to help you make the best possible choice.
Mortgage discharge – Release – Receip
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