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loan discharge
What is a loan discharge?
A loan discharge is a mandatory step to free yourself from a mortgage loan. Indeed, it is the document showing that the creditor acknowledges having received the amounts due to him and therefore that he agrees to cancel the mortgage published on the land register.
It is necessary to free oneself from a mortgage loan, even if the balance of this loan is zero. In particular, this is required when repaying a mortgage loan, selling a property or refinancing.
What is the difference between a loan discharge and a waiver?
A loan discharge is a document in which the creditor certifies that he has received all the sums owed to him and that he agrees to release the building which had been given as security.
As for the release, it suspends the rights of the creditor on a building, but does not certify that all the sums due have been paid.
For example, the release could be used in the case where several buildings have been given as security but only one must be removed from the mortgage.
The main steps for a loan discharge
Here are the main steps that the notary will perform in a loan discharge file:
1) Verification of the identities of the parties.
2) Verification of account statements and mortgage balance.
3) Research the obligations and charges secured by the loan (line of credit, legal construction mortage, etc.).
4) Loan repayment
5) Publication of the receipt in the Quebec Land Registry.