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Release of Mortgage Document

A ‘how-to & why’ you need to obtain the Release of Mortgage document from your financier.

If you have the intention to sell your property soon and you still have an active mortgage, it is important you check what your financier’s requirements are to ensure on-time settlement.

1. Check when documents need to be finalised by:

Usually, your financier or their solicitor will prepare the required release documents and forward them to you for signature. They can expect a return of documents up to 14 days prior to settlement. However, some financiers require a month’s notice prior to settlement!  

2. Investigate your financier’s release of mortgage requirements.

We recommend every seller to investigate your financier’s release of mortgage requirements prior to listing your property for sale.

If you have paid out your mortgage, ensure that your financier has prepared a Release of Mortgage and that it has been registered at the Titles Office.

We had a case recently where a client was under the impression that once their loan was paid off, their financier was meant to automatically release the mortgage over the property. However, this is not often the case and the client’s settlement did not run so smoothly.

3. What action to take

We recommend that prior to listing your property for sale once your mortgage has been paid off, you obtain the Release of Mortgage document from your financier and lodge it with the Titles Office with the nominated fee.

This will ensure that your property is fully unencumbered prior to the settlement being effected and avoid any delays that may occur if a mortgage hasn’t been released and excuse any additional expenses for you, the Seller.

📲 Talk to the Hatzis Conveyancing team regarding the lodgment of these documents to ensure these there are no delays in your settlement.

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