Discharge of Second Mortgage - Paper Discharge dated 1 March 2018

[Yvette]

I act for registered proprietor on title.  They are arranging a refinance. There are two mortgages to be discharged on title.  I hold a PAPER discharge of mortgage DATED 1 MARCH 2018, which was handed to me by the second mortgagee's solicitor Dentons at payout of the loan.   I have set up a workspace and invited the first mortgagee and requested a CoRD holder consent to registration of the discharge of the second mortgage.  Questions:  #1  Is this a stand alone discharge dated after the cut off date, and if so, why would Denton's hand me a paper discharge of mortgage?  #2 If I can lodge paper discharge at NSWLRS after consent - have I set it up correctly (as above) ??

Help ?  I am confused - both Banks are confused....

Thanks

[Ames · Accepted solution]

Hi @Yvette,

You have described a standalone discharge of mortgage (as it was given to you upon repayment and could have been lodged at that time, provided the title was made available). The second mortgagee could have requested the CoRD holder consent then lodged the discharge of mortgage online. In any event, either the standalone discharge OR the refinance would be required to be lodged electronically if both mortgagees are ADIs.

Ordinarily you would not have a role to play in a refinance workspace, the incoming mortgagee and both outgoing mortgagees (or their representatives) would transact in the Workspace together.

Ames.

[GeorgePolus]

Hi Yvette,

I double checked with NSW LRS. 

Per the communicated mandate, LRS will not accept a Paper Discharge of Mortgage dated on or after March 1, 2018.  

As your firm does not act for the Mortgagee (meaning you firm has no signed CAF) your firm cannot create and lodge an electronic Discharge of Mortgage. 

The Party who has a signed CAF with the Mortgagee will need to create and lodge the electronic Discharge,

Once this is completed the ReFI may go ahead. 

Please let me @GeorgePolus know if I can be of further assistance. 

Regards

George 

[Yvette]

Great, thank you.