Discharge of Charge By Lawyers
Bidang Amalan
Hartanah
A discharge of charge removes the bank’s registered charge over your property once the home loan is fully settled or refinanced. It is registered at the Land Office (Form 16N under the National Land Code 1965) and handled by a lawyer. Until it is done, the title still shows the bank as chargee even though the loan is paid off.
Quick summary
A discharge of charge removes the bank’s charge from your title after the loan is settled or refinanced.
It is registered via Form 16N at the Land Office under the National Land Code 1965.
Legal fees follow the SRO 2023 scale; the lawyer liaises with the bank for the discharge documents.
What is a Discharge of Charge?
A discharge of charge is a procedural process of discharging an existing charge on a land title.
Why do you need to discharge a charge on your land title?
The risk of having a charge on a land title is high. If a person defaults on the payment of a loan or the financing arrangement with a financial institution, that said institution may then auction and sell your land to recover the debt that you owe the bank.
In most financing documents in modern days however, the charge may not just be linked to your current loan. There is a clause that states that the bank may also use the current charge on land title to recover any other debt you owe against them via the charge on the land title.
The bank would also continue to hold your land title if you have yet to discharge the charge on your land.
Therefore it is important to cancel that charge on the land title as soon as possible once you have paid your loan fully. This will give back your full control on the property that you have work so hard to acquire.
When do you need to discharge the charge on the land title?
As soon as you have fully paid your loan.
Who can do a discharge of charge?
The banks would only allow and liaise with lawyers and law firms to conduct a discharge of charge. ASCO Law is a legal firm with equipped with lawyers well trained and experience with this service.
Why should I choose ASCO Law?
Real estate law is in fact ASCO Law's area of expertise. Our team of lawyers have been servicing reputable brands in the market.
ASCO Law has conducted hundreds discharge of charge. We have also acted for multinational corporations and businesses of diverse sizes, statutory bodies, federal and state government agencies and consumers alike.
You are in good hands.
How much do I have to pay to discharge the charge on my land title?
Our discharge of charge service is regulated by the Solicitor Remuneration Order. There are two types of discharge of charge service that we provide depending on your circumstance.
(a) Property with land title -
We charge a fix fee of RM955
(inclusive of tax and disbursements)
b) Property without land title (Deed of Revocation and Reassignment)
We charge a fix fee of RM988
(inclusive of tax and disbursements).
Where is ASCO Law located?
Our law firm operates online and offline, which means we can assist your discharge of charge transaction wherever you are in Malaysia.
Our Central Kuala Lumpur office is at Menara Worldwide, Jalan Bukit Bintang, Kuala Lumpur where as our Southern Region Office is at Uda Business Centre, Johor Bahru, Johor.
How do I get started?
You may contact us by pressing the 'Yes, I need a lawyer' button. Fill up the form and submit. Our lawyer will be in touch with you soon to review your matter, discuss and submit a quotation to you for your approval. Once approved, we will get on working right away.
“Paying off your loan does not automatically clear the bank’s charge from the title. Until the discharge is registered under the National Land Code 1965, the bank remains the registered chargee — which will block a future sale or refinance.” — says Akmal Saufi Mohamed Khaled, principal at ASCOLAW (Tetuan Akmal Saufi & Co).
When do you need a discharge of charge?
Situation | Why a discharge is needed |
|---|---|
Loan fully settled | Removes the bank’s charge so you hold a clean title |
Refinancing | Old charge discharged before the new bank registers its charge |
Selling the property | Buyer’s financing and registration cannot proceed while the old charge remains |
Frequently Asked Questions
When do I need a discharge of charge?
When you have fully settled your home loan, when you refinance to another bank, or before selling a property that is still charged. The new dealing cannot proceed cleanly until the old charge is discharged.
How much does a discharge of charge cost?
Legal fees follow the SRO 2023 scale, plus Land Office registration fees and disbursements. Your lawyer can give an estimate based on the property and lender.
Who handles the discharge?
A conveyancing lawyer prepares Form 16N, obtains the discharge documents from the bank, and registers the discharge at the Land Office.
Need a lawyer for this?
ASCOLAW can obtain your discharge documents and register the discharge. Contact ASCOLAW for a short consultation.
This article is for general information only and does not constitute legal advice. Every case is unique. Obtain specific advice from a licensed lawyer before acting.
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Penafian
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Penulis
AKMAL SAUFI MOHAMED KHALED
Managing Partner & Founder
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