Discharges and Related Documents

• Author: Tina Kamakaris/Jane Kamakaris/Louis Kamakaris
• Pages: 609-620

609

Chapter 34 Discharges and Related Documents

CHAPTER 34

is chapter discusses documents that apply when there is no longer a debt over a property as well

as documents that apply when changes in obligations under charges/mortgages become necessary.

DISCHARGE OF CHARGE

A discharge of charge (electronic or paper) is used when a charge has been paid either in full or in

part. Once registered on title, it indicates that there is no longer a charge/mortgage outstanding

on title against the chargor’s property. e terms discharge of charge and discharge of charge/

mortgage are used interchangeably. Although the forms of the electronic and paper discharge of

charge dier, the substance is the same for both forms.

Who prepares and registers a discharge of charge Either the lawyer for the chargee

or the lawyer for the chargor may prepare and register a discharge of charge, but it is the chargee

who must sign it. In the case of lending institutions, the lending institutions themselves usually

prepare as well as register the discharge of charge electronically; they then forward a receipted

(registered) copy of the discharge of charge, together with a letter releasing their interest in the

chargor’s insurance policy, to the lawyer for the chargor.

Who pays legal fees for a discharge of charge e chargor pays a discharge fee

for preparation of the discharge and also a registration fee for registration of the discharge. e

general rule is that the chargee will do what the chargor requires in order to discharge the charge/

mortgage, but at no cost to the chargee since giving the discharge of charge is in the interest of

the chargor.

Documents required for preparing a discharge of charge To prepare either an

e-reg or paper discharge of charge, you require the following documents, as applicable:

1. A discharge statement setting out how much is still owing on the charge/mortgage being

discharged. You get a discharge statement from the chargee after writing to the chargee for

it. See, for example, how the discharge statement in Precedent 34.1 relates to the discharge

of charge in Precedent 34.2.

2. e registered copy of the charge/mortgage being discharged (in possession of chargor).

*3. e registered copy of any transfer of charge, also referred to as assignment of charge/

mortgage, (in possession of new chargee).

DISCHARGES AND

RELATED DOCUMENTS

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