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A Release of Mortgage is the legal document that confirms you've fully paid off your home loan and removes the bank's claim on your property. In New Zealand, this important document proves the lender no longer has any rights over your home and must be registered with Land Information New Zealand (LINZ) to officially clear the mortgage from your property title.

Once registered, the Release of Mortgage (also called a Discharge of Mortgage) lets you sell your property freely or use it as security for another loan. Your lawyer typically handles this process, ensuring the release is properly recorded in the land registry system and complies with the Property Law Act 2007.

You need a Release of Mortgage when you've paid off your home loan completely or want to sell a property with an existing mortgage. This document becomes essential during property sales, refinancing with a new lender, or after making your final mortgage payment through normal repayment or a lump sum.

Your lawyer will typically request the Release of Mortgage from your bank once your loan is fully repaid. Getting this document promptly helps avoid delays in property transactions and ensures you have clear title to your home. For refinancing, your new lender usually coordinates with your current bank to arrange the release as part of the settlement process.

• Standard Release: The most common type, used when a mortgage is fully paid off through regular payments. The bank provides this to confirm the loan is settled and removes their interest in the property.
• Partial Release: Used when releasing only a portion of mortgaged property, common in subdivisions or when selling part of a larger property.
• Refinancing Release: Specifically formatted for situations where you're switching lenders, often processed simultaneously with the new mortgage registration.
• Electronic Release: Filed directly through LINZ's electronic platform, becoming increasingly common in New Zealand's digital property system.

• Mortgage Lenders: Banks and financial institutions prepare and sign the Release of Mortgage once the loan is fully repaid, confirming they no longer have any claim on the property.
• Property Owners: Homeowners receive the release document as proof their mortgage is paid off, letting them sell or refinance their property freely.
• Lawyers: Conveyancing solicitors handle the legal process, requesting the release from banks and registering it with Land Information New Zealand.
• Land Registry Officials: LINZ staff process and record the release, updating the property's title to show it's mortgage-free.

• Property Details: Gather the property's legal description, title reference, and current registered owners from your LINZ records.
• Mortgage Information: Collect the mortgage registration number, original loan amount, and confirmation of full repayment from your bank.
• Identity Verification: Prepare certified copies of ID for all parties involved in the mortgage discharge process.
• Bank Instructions: Request your bank to prepare the Release of Mortgage once you've confirmed the final payment.
• Registration Forms: Complete the required LINZ registration forms for lodging the release electronically.

• Property Identification: Complete legal description and title reference of the mortgaged property as registered with LINZ.
• Mortgage Details: Original mortgage registration number, date of registration, and mortgage reference number.
• Party Information: Full legal names and details of both the mortgagor (property owner) and mortgagee (lender).
• Discharge Statement: Clear declaration that the mortgage is fully satisfied and discharged from the property title.
• Execution Block: Authorized signatures, witness details, and dated execution complying with Property Law Act 2007 requirements.

A Release of Mortgage differs significantly from a Mortgage Agreement in both timing and purpose. While a Mortgage Agreement creates the initial legal claim over your property when you take out a home loan, a Release of Mortgage ends this claim when you've paid off the debt.

• Timing of Use: Mortgage Agreements come at the start of your loan, while Release of Mortgage documents mark the end.
• Legal Effect: Mortgage Agreements place an encumbrance on your property title, whereas a Release removes this encumbrance completely.
• Documentation Required: Mortgage Agreements need extensive financial details and property valuations, while Releases mainly need proof of loan repayment and property identification.
• Registration Process: Both documents must be registered with LINZ, but Releases typically involve a simpler process as they're removing rather than creating rights.