In British Columbia, discharging a mortgage from a title involves a legal process to remove the mortgage lien from the property's title. Here are the general steps involved in discharging a mortgage in British Columbia:
1. Repayment of the Mortgage:
- Before a mortgage can be discharged, the borrower (mortgagor) must fully repay the mortgage loan. This usually involves paying off the remaining principal amount, any accrued interest, and potential prepayment penalties, if applicable.
2. Obtaining a Mortgage Discharge Statement:
- The borrower should contact the mortgage lender and request a mortgage discharge statement. This statement outlines the amount required to fully repay the mortgage, including any fees or penalties.
3. Payment to the Lender:
- The borrower makes the necessary payment to the lender, ensuring that it covers the full amount specified in the mortgage discharge statement.
4. Request for Mortgage Discharge:
- Once the payment is made, the borrower or their legal representative (usually a lawyer or notary public) submits a formal request for the mortgage discharge to the lender. This request is often accompanied by proof of payment and other required documentation.
5. Lender's Confirmation:
- The lender reviews the request and, if everything is in order, provides confirmation that the mortgage has been satisfied. This confirmation is typically in the form of a "Discharge of Mortgage."
6. Submission to the Land Title Office:
- The Discharge of Mortgage document, along with any other required documentation, is submitted to the British Columbia Land Title Office. This is done to officially remove the mortgage lien from the property's title.
7. Registration of Discharge:
- The Land Title Office registers the Discharge of Mortgage, and the property title is updated to reflect that the mortgage has been discharged. The updated title is then provided to the property owner.
It's important to note that the specific process may vary, and it's recommended to work with a legal professional, such as a lawyer or notary public, to ensure that all necessary steps are taken and that the discharge is processed correctly. Additionally, there may be fees associated with the mortgage discharge process, and these should be outlined in the mortgage agreement.