Do you intend to sell your property in the next few weeks or months? Did you have a mortgage which has not yet been cancelled? You need to obtain a discharge. In this article, I will explain to you what a discharge is, who should pay for it, how much it costs and why it is important to request it, if you have paid your mortgage.
What is a discharge?
The discharge is an acknowledgment by the creditor who loaned you the money to buy your property that it has been fully repaid, and by which it waives all its rights to the property.
Who has to pay for the discharge?
The discharge is the vendor’s responsibility and duty. It is not the purchaser’s responsibility.
Have already paid off your mortgage? It is important to request a discharge as soon as possible.
Once your mortgage is fully paid off, you may wonder why you should incur costs for a discharge? The answer is simple: for a sale, a transfer, or a new mortgage, the discharge must absolutely have been obtained and published.
Keep in mind that in a few years the bank files of those who paid off their loans will be out of date and might even be lost. So when taking out a new mortgage or when selling, it will take longer and more work to arrange and therefore it will have been better to get a discharge.
This is especially true since banks sometimes change names or merge with another bank in the same way, and it can be difficult to have the discharge signed by the right mortgage lender. You then have to turn to the Quebec Superior Court to determine that the property is free from any financial seizure. As mentioned above, this can be much more expensive than paying a notary’s fee and the cost of publication of the discharge when the mortgage payments have ended.
How much does it cost?
The price includes the cost of publishing the discharge in the Quebec Land Registry, about $ 150, plus notary’s fees which can vary between $300 and $600 depending on various criteria such as the time and effort devoted to the file, the complexity of the case and also the experience and expertise of the notary.
Do you have the questions? Contact me, Mona Salahi Notary in Montreal at 514-903-8560.
Mona Sahehi Notaire – Célébrant de mariage civil
