Discharge of Charge
Releasing the bank charge over your property after the loan has been settled in full, and registering that discharge at the land office so your title is clean.
After you settle your housing loan in full, the bank charge remains registered against your title until a discharge instrument is filed and registered at the land office. Until then your property is not free of encumbrance, which will hold up a sale or a refinancing.
Settling your housing loan does not automatically clear your title. The charge registered at the land office stays there until a discharge instrument is filed and registered.
Many owners only discover this years later, when they try to sell and a land search shows the charge still in place.
When it should be done
As soon as the loan is settled in full. There is no benefit in delaying, and delay only adds risk: banks merge or change names, documents become harder to trace, or a registered proprietor dies before the matter is dealt with.
Documents from the bank
The bank has to issue a full settlement confirmation, a signed discharge instrument, and the original title held in its custody. The time taken to issue these is the part of the process that most often takes longest, and it is outside the control of the solicitors.
What your lawyer handles
- Requesting the full settlement confirmation and discharge instrument from the bank
- Checking whether individual title has issued, since this determines the form of release required
- Preparing and perfecting the discharge instrument
- Presenting the discharge for registration at the land office
- Retrieving the original title from the bank's custody
- Delivering the clean title to you
Timeline
Documents you need to prepare
- Copy of the identity card of every registered proprietor
- Full settlement confirmation from the bank
- Copy of the title
- Copy of the original charge document if you have it
Costs people often overlook
- Legal fees for preparing and registering the discharge
- Land office fee for registration of the discharge
- Administrative charges from the bank for issuing the discharge documents
- Service tax of 8% on legal fees
When to stop and get advice first
- The original title cannot be traced by the bank, which requires a replacement of lost title first
- The name of the registered proprietor differs from the name on the current identity card
- One of the registered proprietors has died
- The charge is registered in favour of a bank that has since merged or changed its name, requiring additional supporting documents
Frequently asked questions
I have paid off the loan, why do I still need a discharge?
Settlement of the loan and discharge of the charge are two separate things. Until the discharge is registered at the land office, the register still shows your property as encumbered.
What happens if I do not do it?
Your property cannot be sold or charged again until the charge is discharged. It can also complicate an estate matter later.
How long does it take?
Usually one to three months, depending mainly on how quickly the bank issues the discharge documents and the original title.
Can I do it myself without a lawyer?
The discharge instrument has to be perfected and registered to the land office's requirements. Errors in the instrument lead to rejection and delay.
My title is lost, can I still discharge?
A lost title has to be replaced first through a replacement of title application. That is a separate matter which takes additional time.
Ready to start your property matter?
An initial consultation with no obligation. Tell us about your matter and we will explain what is involved and what it is likely to cost.
No. 4, Jalan Setia Impian U13/3D, Setia Impian 3, Seksyen U13, Setia Alam, 40170 Shah Alam, Selangor
014-9723468 · 014-4004293 · Monday to Friday, 9:00am to 6:00pm