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The majority of people selling their property will have a mortgage to a bank or financial institution. The mortgage must be discharged at settlement in order for the purchaser to be able to receive title. Once the vendor has completed the relevant discharge forms, the vendor’s Conveyancer or Conveyancing Solicitor normally arranges settlement with the bank, whereby the outstanding debt will be paid off.

The process of discharging a mortgage in the sale of a property usually (but not always) proceeds as follows:

  1. The vendor locates a purchaser
  2. Provided that the Vendor is not under any obligation to seek permission or consent of the Mortgagee (or Bank or Lender) before doing so, the Vendorusually proceeds to Exchange of Contracts and the purchaser becomes unconditionally bound to the Contract (possible after the expiry of the cooling off period)
  3. The vendor notifies the outgoing mortgagee of the sale
  4. The outgoing mortgagee provides the vendor with the relevant discharge forms and paperwork
  5. The vendor completes the discharge forms and lodges this with the outgoing mortgagee
  6. The outgoing mortgagee processes the discharge of the mortgage (this can take 10 working days or more, depending on the financial institution)
  7. The vendor’s Conveyancer or Conveyancing Solicitor arranges settlement with the purchaser and the outgoing mortgagee
  8. At settlement, the purchaser pays the purchase price. The vendor’s solicitor then pays off the mortgage debt, receives title to the property from the outgoing mortgagee, and provides title to the purchaser
  9. The balance of the purchase price is paid to the vendor

Our Conveyancing Lawyers deal with banks on a regular basis and understand the process involved with discharging a mortgage.

For more information, contact our office and arrange a free first home consultation with a member of our conveyancing team. Our Sydney Conveyancing Lawyers service most areas within the Sydney metropolitan area including Bondi Junction, Haymarket and Penrith. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.

Why Navado?
  • We have been operating since 2001
  • Fixed Fees - $ 590 plus disbursements
  • We have a 'can do culture' - we deliver
  • We promptly return phone calls and emails
  • We have regular repeat business
  • Our staff attend Sydney settlemements
  • Our staff are humble and hard working
  • Senior staff hold Honours Law degrees
  • Senior staff personally oversee your file
  • We have state of the art technology
Speak to a Conveyancing Lawyer now...

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.

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If you are buying or selling a property and require Conveyancing services, you should make an appointment to see one of our Conveyancing Lawyers in one of the following locations:

  • Sydney
  • Parramatta
  • North Sydney
  • Hurstville
  • Liverpool
  • Gordon
  • Baulkham Hills
  • Campbelltown
  • Bondi Junction

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