Fully paid off your CIMB housing loan or property financing?
There may still be one final legal step to complete.
If CIMB has a registered charge over your property, the charge does not simply disappear from the property title when the loan is paid off. A Discharge of Charge is generally required to formally release the property from the bank’s registered security.
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What Happens After You Fully Settle a CIMB Housing Loan?
Once the financing has been fully settled, the next step is to deal with the security previously given to CIMB.
The procedure will depend on whether your property already has an individual or strata title.
If Your Property Has an Individual or Strata Title
Where CIMB’s interest is registered as a charge on the property title, a Discharge of Charge will generally be required.
The prescribed document is Form 16N – Discharge of Charge under section 278 of the National Land Code.
Once the necessary documentation has been completed, the discharge will be presented for registration at the relevant Land Office or Land Registry.
If Your Property Does Not Yet Have an Individual or Strata Title
If CIMB’s security was created by way of an assignment because no separate title had been issued, there may not be a registered charge to discharge.
Instead, a Deed of Receipt and Reassignment, commonly referred to as an R&R or DRR, may be required to release CIMB’s interest and reassign the relevant rights in the property.
The two procedures can be distinguished as follows:
- Discharge of Charge – generally for properties with an individual or strata title; and
- Deed of Receipt and Reassignment – generally for properties without an individual or strata title.
Your solicitor can check the title and previous financing documents to determine which procedure applies.
Can My Lawyer Deal With CIMB?
Yes.
Depending on the circumstances, your conveyancing lawyer can assist with:
- reviewing the title and existing security documents;
- corresponding with CIMB;
- obtaining the relevant settlement or discharge documents;
- preparing the necessary discharge documentation;
- attending to stamping and registration requirements; and
- following up on registration of the discharge.
Redemption and Discharge Are Not Quite the Same Thing
This is an important distinction.
A redemption generally relates to determining and paying the outstanding amount required to fully settle the loan or financing.
A redemption statement shows the total remaining amount required to pay off the property financing.
A Discharge of Charge, on the other hand, deals with removing the bank’s registered security from the property title after settlement.
Therefore, paying the redemption sum and completing the discharge are related steps, but they serve different purposes.
Why Complete the Discharge?
Completing the discharge ensures that the land records properly reflect that CIMB’s registered charge has been released.
It is particularly useful to have the documentation properly completed before the property is subsequently:
- sold;
- transferred;
- refinanced; or
- used as security for another financing facility.
Need Help With a CIMB Discharge of Charge?
TEH & YU assists property owners with conveyancing matters including the Discharge of Charge following full settlement of housing loans and property financing.
If you have fully settled your CIMB housing loan but the charge remains registered against your property title, we can review the relevant documents and assist with the discharge process.
Contact us to enquire about CIMB Discharge of Charge services in Malaysia.
Frequently Asked Questions
Can CIMB issue settlement documents directly to my lawyer?
Yes. An appointed solicitor may request property financing redemption and settlement documentation on behalf of a customer, subject to the bank’s documentation and authorisation requirements.
Is a Discharge of Charge required if my CIMB loan balance is zero?
If CIMB has a registered charge over the property title, the charge will still need to be formally discharged and the relevant discharge registered.
Is Form 16N used for CIMB Discharge of Charge?
Where the security is a registered charge under the National Land Code, Form 16N is the prescribed form for a Discharge of Charge.
What if my property is still under a master title?
Where there is no individual or strata title and CIMB’s security was created by way of an assignment, a Deed of Receipt and Reassignment may be applicable instead of a Form 16N Discharge of Charge.
Read more: You’ve Settled Your Housing Loan. What Happens Next?
Need Assistance With a Discharge of Charge?
If your housing loan has been fully settled and you require assistance to discharge the bank’s charge from your property title, contact us to discuss the next steps.