A Discharge of mortgage is a type of dealing, usually lodged by a bank or financial institution, after a mortgage has been repaid. On registration, reference to the mortgage is removed from the title.
The Discharge document is created in PEXA when the proprietor on title pays out their mortgage and requests the Bank to remove their name from the registered title. Alternatively the proprietor wants to refinance their mortgage with another financial institution.
The Discharge document is included in a lodgement case that is submitted to the Land Registry for registration of the discharge of mortgage.
Financial settlement data is entered into the Workspace in PEXA when the discharge involves the transfer of funds between Financial Institutions. The financial settlement has a scheduled date and time. At the prescribed financial settlement time the funds are exchanged and the lodgement case will be lodged.
All financial items must by certified and registry documents signed prior to the financial settlement date and time.
Mortgage Payout Scenario
William and Sue Black pay out their registered mortgage with Green Bank. As a result, Green Bank is requested to Discharge the registered mortgage over the property.
Green Bank, as a Subscriber in PEXA, creates a new Workspace with the role of Mortgagee on Title and creates the Discharge document.
Green Bank creates a Workspace in PEXA and enters the following details:
Jurisdiction of Land Title as Victoria
Representative Role Mortgagee on Title
Land Title Information Vol/ Folio Number and
Subscriber Reference Number.
PEXA will display the Victorian Discharge of Mortgage form, which is pre-populated with land title data previously entered for the Workspace.
PEXA creates a Lodgement Case and associates the Discharge document and Registrar’s Instructions.
PEXA automatically generates a Lodgement Instruction document for the Lodgement Case.
Mortgage Operations staff may add or amend data prepopulated into these documents as required.
Once the documents are completed, PEXA sends the Lodgement Case to the Land Registry for verification.
A Green Bank certifier (a staff member with authority to sign on Green Bank’s behalf) will digitally sign the electronic documents in the Lodgement Case.
The Bank may require a second Certifier for the transaction.
Upon provision of digital signatures, PEXA automatically initiates another Lodgement Verification with the Land Registry.
Following successful lodgement verification a Green Bank staff member requests lodgement of the Lodgement Case
Once the Land Registry receives and processes the Lodgement Case, it sends PEXA a Lodgement Advice and Dealing Numberwhich is updated in the Workspace.
Once the Discharge is registered with the Land Registry, a notification is sent to PEXA to confirm that the Register has been updated to reflect the discharge of mortgage over Mr & Mrs Black’s property.