When your housing loan is paid off, you need to redeem the Original Title of your house from the bank. This process is called Discharge of Charge.
 
Discharge of Charge is a process to remove the mortgage encumbrance imposed on the Original Title, and turn the property completely owned by you and free of any encumbrances. The whole process involves the bank, Inland Revenue Department (LHDN), and Land Office.
 
After you pay off the mortgage, the bank will send a letter asking you to appoint a solicitor for the Discharge of Charge procedure. You can appoint any of your preferred law firms for the procedures. The documents you will need to prepare for your solicitor are:
 
1. IC/ Passport of the Buyer/ Borrower
2. The latest Quit Rent (Cukai Tanah)
3. The latest Assessment (Cukai Pintu)
4. Proof of settlement of the loan
 
The solicitor will prepare all the Discharge of Charge documents and deal with the relevant departments. The general process is as follows:
 
1. Signing of a Letter of Authorization for the Discharge of Charge;
2. The relevant documents to be submitted to the bank;
3. The bank will execute the relevant documents submitted by the solicitor;
4. The documents are then submitted to the Inland Revenue Bureau (LHDN) for review and stamping;
5. Subsequently, the documents will be presented to the Land Office for the registration;
6. Finally you will get a new Original Title for your own property.
 
You can come to the law firm to collect the Original Title once we receive it from the Land Office.
 
If you have any questions or would like to appoint our solicitors to handle the Discharge of Charge for you, you are welcome to leave a message to us or contact our colleague Ms. Emma.