Discharge of Charge & Loan Settlement in Malaysia
Legal assistance to remove a bank's interest from your property after full loan settlement, refinancing or as part of a property transaction.
Which Process Applies?
Removing the Bank's Interest From Your Property
When a housing loan is fully repaid or a property is refinanced, the bank's interest should be formally released. The applicable documentation depends principally on whether the property has an individual or strata title, or remains under a master title.
Discharge of Charge or Receipt & Reassignment?
Discharge of Charge
Where the bank's charge is registered against an individual or strata title, the discharge process removes the bank's registered interest after the secured loan has been settled.
- Individual or strata title has been issued
- Bank's charge is registered on the title
- Discharge documentation is executed by the bank
- Relevant documents are lodged at the Land Office
Receipt & Reassignment
Where the property remains under a master title and the bank's security is by way of a Deed of Assignment, a Receipt & Reassignment is generally used instead.
- Individual or strata title has not yet been issued or perfected
- Security is by way of assignment
- Bank confirms settlement and reassigns its interest
- Original security documents are released as applicable
When Do You Need a Discharge or Redemption?
The discharge or redemption process is commonly required after a housing loan has been fully repaid, when a property is refinanced with another bank, or when an existing loan needs to be redeemed as part of a sale.
Discharge of Charge / Redemption Process
How We Can Assist
Bank Coordination
Coordinate with the relevant bank on redemption, settlement and release documentation.
Documentation
Prepare and attend to the applicable discharge or reassignment documentation.
Land Office Matters
Attend to lodgment and registration formalities where a titled property is involved.
How Long Does the Process Take?
The process commonly takes around 2 to 3 months, depending on matters such as the bank's execution of documents and Land Office processing.
The total cost may include legal fees, registration or lodgment fees, searches, disbursements and any applicable bank administrative charges.
Request a Quotation
To help us understand your matter, please provide:
- Type of title, if known
- Property location
- Name of the bank
- Whether the loan has been fully settled
Documents Commonly Required
The documents required will depend on the property, title status and bank. Common documents may include the following.
Property & Loan Documents
- Property title, where applicable
- Relevant loan or security documents
- Proof or confirmation of loan settlement
- Bank correspondence, if available
Owner & Property Records
- Copy of owner's identity document
- Latest quit rent information, where applicable
- Latest assessment information, where applicable
- Other documents requested after review
Why Clients Engage TEH & YU
Clear Communication
We explain the applicable process and documents in practical terms.
Transparent Fees
Applicable legal fees and anticipated disbursements are explained at the outset.
Bank Coordination
We communicate with the relevant bank and follow up on the required release documentation.
End-to-End Assistance
From initial documents through discharge, reassignment or completion formalities.
CLIENT FEEDBACK
What Our Clients Say
Frequently Asked Questions
What is the difference between a Discharge of Charge and Receipt & Reassignment?
A Discharge of Charge generally applies where the property has an individual or strata title and the bank's charge is registered on the title. A Receipt & Reassignment generally applies where the property remains under a master title and the bank's security is by way of a Deed of Assignment.
How long does a Discharge of Charge take?
The process typically takes around 2 to 3 months, depending on matters such as the bank's execution of documents and the relevant Land Office's processing time.
How are legal fees for a Discharge of Charge calculated?
Legal fees are subject to the applicable remuneration framework. Contact us with the details of your property and loan for a quotation.
Who pays the legal fees?
The borrower or property owner will generally bear the relevant legal fees and disbursements, subject to the particular transaction and any applicable agreement.
Do I need to attend the bank or Land Office personally?
In many cases, the solicitors can coordinate the relevant documentation, lodgment and follow-up. We will advise if your attendance is required for any particular step.
What documents are required to start?
Common documents include the property title where applicable, identity documents, loan settlement information and relevant property records. Additional documents may be required depending on the circumstances.
What happens if I do not discharge the charge after full loan settlement?
If the registered charge is not discharged, the bank's charge may remain reflected on the property title even though the loan has been settled.
Need to Release the Bank's Interest From Your Property?
Speak to our conveyancing team regarding a Discharge of Charge, Receipt & Reassignment, refinancing or full loan settlement.
Request a Quotation
Tell us a little about your property and loan. Your answers will be compiled into a WhatsApp message for you to review and send.