When you pay off your mortgage, your lender does not typically send you a new deed, but rather a "Satisfaction of Mortgage" or "Deed of Reconveyance" document. This document is sent to your local county recorder's office to officially release the lien. You will usually receive a copy of this release document directly from your lender or the county records office within a few weeks to months.
After completion, your solicitor will send the mortgage deed to HM Land Registry. The Land Registry will update the property's title register to show you as the new owner and to record the lender's legal charge against the property. This means you can't sell the house without paying off the mortgage first.
If you paid off your mortgage but never received a deed of reconveyance, contact your lender. Lenders can face statutory penalties, or even litigation, if the deed process isn't handled according to state guidelines — so yours has incentive to help you.
No, you don't get a new deed; you already got the deed when you bought the property, but you receive a Satisfaction of Mortgage, Deed of Reconveyance, or Mortgage Release, which is a crucial document proving the lender's lien is removed and your property is truly "free and clear," needing to be recorded with your county to clear the public record.
“First, expect to receive a letter from your lender, referred to as the 'mortgage satisfaction letter. ' This proves you no longer owe them anything on your house and your loan is paid in full,” says Jeffrey Zhou, CEO and founder of Fig Loans.
A deed proves ownership and transfers title, while a mortgage is a loan agreement. Your lender holds a lien on the property, not a mortgage, meaning they do not hold the deed itself. Understanding the difference between title and deed is crucial. Different types of deeds can affect your ownership rights.
The time frame can vary, but typically, you might exchange contracts within a few days to a couple of weeks after signing the mortgage deed. Your solicitor or conveyancer will coordinate this process and keep you informed.
Having a copy of your deed is critical because it allows you to verify who has ownership interest in your property. Keep reading to learn how to get the deed to your house so that you can verify ownership and make sure there are no outstanding errors or legal issues.
Being on the deed means you legally own the property. You have the right to live in, sell, or transfer your share of the home. You are not responsible for mortgage payments unless you also signed the loan. Establishing ownership without being on the deed can be difficult and may require legal assistance.
The bank or mortgage holder will issue a Deed of Reconveyance, which signifies the transfer of property ownership back to you once your mortgage is fully paid. This process clears the lender from the title of the property, ensuring that you have full ownership.
You instruct your solicitor to prepare an application to discharge the standard security. Your solicitor sends the discharge to your lender for signing. Your lender signs the discharge, confirming that you've paid your mortgage in full, and returns it to your solicitor.
Do property taxes go up when you pay off your mortgage? No. Your property tax amount largely depends on the assessed value of your home, not your mortgage balance or the presence of a mortgage.
Discharging after paying off your mortgage
You, your lawyer or your notary can discharge your mortgage once you pay it off. You also need to make sure you don't have any amount owing on any related products. For example, you may have a home equity line of credit ( HELOC ) with your mortgage.
During this part of the process, the buyer's solicitor will draw their attention to any problems before an exchange of contracts. The buyer's solicitor will usually also send the mortgage deed to the buyer for signature at this time.
When a home is owned free-and-clear, the homeowner is the rightful owner and thus holds the deed to the house. However, if the homeowner is still paying a mortgage, then they technically do not fully own the house yet. In this case, the deed may be held by the mortgage lender.
When closing on a home, you should receive a copy of your house deed when the title is transferred to you. You can also request an additional copy at any time through your County Recorder's office or Register of Deeds office (the official name may vary by location).
A certificate of release is an official document issued by a bank that confirms a mortgage has been fully paid off. This certificate serves as proof that the debt has been satisfied and that the bank no longer holds a financial interest in the property.