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Release Of Mortgage Document Template for Malaysia

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Key Requirements PROMPT example:

Release Of Mortgage Document

"I need a Release of Mortgage Document for a residential property in Kuala Lumpur, where HSBC Bank Malaysia is releasing their charge after full loan settlement expected in March 2025; this is a straightforward release with a single property and individual owner."

Document background
The Release Of Mortgage Document is a crucial legal instrument in Malaysian property transactions, used when a borrower has fully repaid their mortgage loan. This document is essential for clearing the title of the property from any registered charge or encumbrance. It must comply with the National Land Code 1965 and relevant state land rules, requiring proper execution by authorized signatories from the lending institution and registration at the land office. The document includes specific details about the property, original charge, and confirmation of full settlement, serving as official evidence that the property is free from the mortgage. It's particularly important in property sales, refinancing, or when the owner needs to prove unencumbered ownership.
Suggested Sections

1. Title and Date: Formal title 'Release of Charge/Mortgage' and date of execution

2. Parties: Details of the Chargee (Bank/Financial Institution) and Chargor (Property Owner)

3. Background: Reference to the original Charge/Mortgage, including registration details, date, and amount

4. Definitions: Key terms used in the document including 'Property', 'Charge', 'Land Office', etc.

5. Declaration of Discharge: Formal statement releasing and discharging the property from the mortgage

6. Property Details: Legal description of the property being released, including title details

7. Confirmation of Payment: Acknowledgment that the mortgage has been fully satisfied

8. Execution Block: Signature sections for all parties and witnesses

9. Attestation Clause: Formal witnessing clause as required by Malaysian law

Optional Sections

1. Partial Release Clause: Used when only part of the charged property is being released

2. Multiple Chargees Declaration: Required when there are multiple banks/lenders involved

3. Consent of Caveator: Needed if there is a caveat on the title that requires consent for the release

4. Special Conditions: Any specific conditions attached to the release of the mortgage

5. Power of Attorney: Required if any party is acting through an attorney

Suggested Schedules

1. Schedule 1 - Property Description: Detailed legal description of the property including lot number, title details, and address

2. Schedule 2 - Original Charge Details: Copy or details of the original registered charge document

3. Schedule 3 - Supporting Documents: List of attached supporting documents such as board resolutions, power of attorney

4. Appendix A - Land Title Search: Recent land title search showing the registered charge

5. Appendix B - Settlement Statement: Statement confirming full settlement of the mortgage (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses













Relevant Industries

Banking and Financial Services

Real Estate

Legal Services

Property Development

Construction

Corporate Services

Housing Development

Mortgage Services

Relevant Teams

Legal

Mortgage Operations

Credit Administration

Property Services

Document Management

Compliance

Real Estate

Corporate Secretarial

Risk Management

Relevant Roles

Bank Manager

Legal Officer

Property Lawyer

Conveyancing Executive

Mortgage Officer

Land Administrator

Company Secretary

Legal Counsel

Credit Officer

Real Estate Manager

Compliance Officer

Document Controller

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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