Document background
The Mortgage Payoff Form is a crucial document in Nigerian property transactions that formally details the requirements for discharging a mortgage loan. It is typically used when a borrower is preparing to pay off their mortgage, either at the natural end of the loan term, through refinancing, or in preparation for a property sale. The form must comply with Nigerian banking regulations, particularly those set forth by the Central Bank of Nigeria and the Federal Mortgage Bank of Nigeria. When issuing a Mortgage Payoff Form, lenders must include precise calculations of the remaining principal, accrued interest, and any additional fees or charges, along with a clear validity period for the quoted amount. The document serves as both a formal statement of the amount required to satisfy the loan and as evidence of the lender's commitment to release their security interest in the property upon receipt of the specified payment.
