Mortgages and charges in property due diligence

At a glance

Identify every loan security, charge and release document affecting the property. A seller's statement that a loan is paid should be supported by the relevant records.

Law and context

The Transfer of Property Act distinguishes mortgage forms and rights within its scope. Special recovery legislation may also affect enforcement. The existence of a debt and the release of a property security are related but different matters.

Practical next step

Obtain available loan, mortgage, repayment and release documents, and arrange appropriate registration and other searches. Identify custody of originals and outstanding institutional requirements before completion.

Important qualifications

This guide does not certify that a property is free of encumbrances. Informal assurances and a single search may leave important interests undiscovered.

Document checklist

• Mortgage and loan documents
• Release or satisfaction record
• Original-document custody
• Search and dispute information

Sources

• The Transfer of Property Act, 1882 — 58,60,100
• The Registration Act, 1908 — 17

General information. The appropriate course depends on the complete facts, documents and applicable law. Editorial process and website disclaimer.