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    The Importance of a Timely Discharge of a Mortgage

    On several occasions during the past year, our office has been involved in matters associated with undischarged mortgages. Certain of these mortgages had improperly remained on title for a period of at least 10-15 years.

    After the completion of a real estate transaction, it is extremely important for the Vendor’s lawyer to diarize his or her undertaking(s) to discharge all mortgages (and related security). It is also important for the purchaser’s lawyer to diarize undertakings that are received, in order to follow up and to ensure that the mortgage is discharged properly.

    The longer a mortgage that should be discharged remains on title, the larger the problem becomes.

    Mortgages can remain on title for a number of reasons: for example, there may be an error in the lending institution’s name, a technical issue with the Land Registrar’s office, or the vendor’s lawyer has failed to register a discharge.

    When it comes time for the owner of a home to refinance, or if the owner wants to sell the property, an undischarged mortgage clutters title and may be difficult, costly and time consuming to discharge. Purchasers should be made aware of encumbrances that are being left on title after the property is transferred to them, so that they can follow up to ensure that a discharge is registered.  Empowering clients with this knowledge will put their mind at ease and help them understand the mortgage process.

    The content on this website is for information purposes only and is not legal advice, which cannot be given without knowing the facts of a specific situation. You should never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The use of the website does not establish a solicitor and client relationship. If you would like to discuss your specific legal needs with us, please contact our office at 613-563-7544 and one of our lawyers will be happy to assist you.

    Posted By: Merovitz Potechin

    Merovitz Potechin LLP has been serving the business and personal needs of the Ottawa area since 1976. Our lawyers will work directly with you throughout your legal matter.

    We are committed to asking the right questions so you obtain the best advice. We are responsive to your needs, and you can trust that we will give you the care and attention you deserve.