The term Partial Discharge has a different meaning depending upon the perspective from which it is viewed.
Partial Discharge occurs where more than one Land Title is used to secure a loan, and one or more (but not all) of those Land Titles is released as security (e.g. for property developments).
Partial Discharge occurs where a fraction of Proprietors or Mortgagees in a Tenancy are removed from a Mortgage.
Can PEXA support Discharge of a Mortgage from any one or more Land Titles securing a loan?
Yes. PEXA provides the capability for the mortgagee on title (or its representative), to discharge the Mortgage from all or, any but not all, of the Titles securing a Mortgage.
The Mortgagee on Title (or their appointed representative) identifies the Land Title(s) from which the Mortgage is to be Discharged and requests that the identified title(s) be brought into the PEXA Workspace.
Upon successful lodgement the Land Registry will Discharge the Mortgage from each of the titles identified on the Discharge of Mortgage document.
Can PEXA support Discharge of one or more Mortgagors, but not all from a Mortgage?
PEXA supports the ability for Proprietors in a Tenancy to be registered on title as Mortgagors:
For example, Mary and Fred Jones are joint Proprietors of their family home. Fred and Mary successfully apply for a loan from ANZ Bank. ANZ Bank register a single Mortgage on the family home with Mary and Fred as Mortgagors.
PEXA is unable to support Discharge of one or more Mortgagors, but not all from a Mortgage in a single transaction.
That said if one or more Proprietors were to relinquish their interest on title, then a new Mortgage could be registered with the new Proprietor(s) as Mortgagor.
Using the example above, if Fred and Mary determined that Fred would no longer be a Proprietor and ANZ agreed that Mary could be the sole Mortgagor, then a Discharge - Transfer - Mortgage transaction could be completed in PEXA to Discharge the existing Mortgage, transfer the land from Fred and Mary to Mary and register ANZ as Mortgagee with Mary as Mortgagor.
Can PEXA support Discharge of one or more Mortgagees, but not all from a Mortgage?
PEXA supports the ability for a Mortgage having more than one Mortgagee in a Tenancy to be registered on title.
Jim Smith a developer purchases land for a development. Jim secures investor capital from Investors A, B and C in shares of 60%, 30% and 10% respectively. Each investor wishes to be registered as Mortgagee at the same priority on a single Mortgage. PEXA provides for Investor A, B and C to be represented by the same or different Participant to register their interest in land as Mortgagees. Click here to learn more.
PEXA is unable to support Discharge of one or more Mortgagees, but not all from a Mortgage in a single transaction.
That said, if one or more Mortgagees wishes to relinquish their interest, then the existing Mortgage on which the Mortgagee holds a tenancy may be Discharged and a new Mortgage with the remaining and or new Mortgagees added.