Discharge of a mortgage previously released but not discharged
Hi we are in WA with a weird situation
We have a current mortgage with bank A, on the CT there is a mortgage #1 listed against bank B back from 2011 and the current mortgage #2 listed against bank A. The Bank B mortgage that was paid out and released in 2011 was for some reason not discharged at the time. The Duplicate cert was released by Bank B to bank A in 2011 and is currently held by Bank A.
Now as settlement is about to occur Bank B is refusing to discharge the old paid out mortgage as they are saying they require the original paper title that was released to bank A to be returned so it can be executed and settlement to proceed. Bank B has made it clear that at this stage they wont settle until we have the title issue resolved.
Has anyone any experience with this and do they actually need to hold the paper duplicate certificate in order to discharge their mortgage?