Are you one of those who will soon post the “SOLD” sign in front of your property?
If so, be sure to add the discharge fees and fees to your budget.
What is a receipt?
A discharge is an act by which a person to whom you owe money confirms that your debt is repaid in full. In real estate, this implies that your lender releases your property. He renounces taking it as collateral and selling it in the event of a default. The lender is often your financial institution.
Getting a discharge is the only way to assure your buyer that their new property will not be foreclosed on to pay off your debts.
Who is responsible for obtaining it?
Promises to purchase generally provide that the seller is responsible for obtaining the discharge from your lender. He must pay the related costs and fees, which generally amount to several hundred dollars.
Even if it is you who pay to obtain the discharge, it is your buyer who chooses the notary who will do the deed of sale, the mortgage and your discharge.
How to get your receipt?
To obtain a receipt, the notary performs several steps:
- He gets the balance of your mortgage loans from the lender.
- He obtains a written commitment from the lender to sign the discharge act when he receives the last sums due.
- He submits a draft deed of discharge to the lender once everything is fully repaid.
- He has the deed signed by an authorized representative of the lender.
- He has the signing of the deed certified by an official.
- He publishes the deed of discharge in the land register to indicate to everyone that your mortgage is inactive.
On your side, you have nothing to do other than to entrust the mandate to the notary.
Remember: even if it is the buyer who pays the notary for the deed of sale, you must plan to pay sums to obtain your discharge.
Informative text – This text does not constitute legal advice; it is recommended to consult a lawyer or notary for such an opinion. Éducaloi is a non-profit organization whose mission is to inform Quebecers of their rights and obligations in clear language ”.