What to do?

Mortgage pay-off

15 / Mar

When you pay off a mortgage, you pay the fees for it, but it is the bank that has to sign the cancellation deed.

The deed of cancellation is the notarised deed that clears the entry in the Property Registry of a mortgage. The bank signing the deed of cancellation may sound contradictory, but it is in your interest that the burden is removed from the property.

The bank must sign the notarial deed declaring that the client no longer owes the bank anything. This deed must then be registered with the Property Registry because otherwise the mortgage will remain as a burden on the property.

When paying off a mortgage, consider notary fees and the cost of registering the deed with the Property Registry. But don’t forget that you often have to pay a penalty on early repayment.

Steps to follow

  1. Ask the bank for a certificate stating that the mortgage has been paid off;
  2. Give that certificate to a notary of your choice and ask when the deed will be ready;
  3. Inform the bank so they can send a representative to sign the deed at the notary.

You can also do nothing, but then the burden will still rest on the property. If you want to sell the house in the future, you will still have to cancel the mortgage from the Property Registry.

Since 2002, it has been possible to cancel a mortgage without a deed of cancellation, but this can only be done 20 years after the term of payment stated in the mortgage deed has expired.

Ilonka Dekker