Have you recently finished paying your Hong Leong Bank housing loan?
Paying the final instalment is certainly an important milestone. However, if Hong Leong Bank has a registered charge over your property, there may still be legal documentation to complete before the bank’s charge is formally removed from the property title.
This process is commonly known as a Discharge of Charge.
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What Should I Do After Settling My Hong Leong Bank Housing Loan?
Once the housing loan has been fully settled, the next step is to deal with the bank’s security over the property.
After full settlement, the relevant title and security documents will need to be reviewed to determine the appropriate discharge procedure.
If Hong Leong Bank is registered as a chargee on an individual or strata title, a Discharge of Charge will generally be required.
What Documents May Be Involved?
The documents required will depend on the property and the original financing arrangement.
Common documents or information that may need to be reviewed include:
- the property title;
- details of the Hong Leong Bank housing loan;
- the existing registered charge;
- loan settlement or redemption documentation;
- identification documents of the registered proprietor; and
- the relevant discharge documentation.
Your lawyer will normally review the existing title and security documents before proceeding.
What Is Form 16N?
For a property subject to a registered charge under the National Land Code, the prescribed instrument used to discharge the charge is Form 16N – Discharge of Charge.
The discharge documentation must be properly completed and ultimately presented for registration at the relevant Land Office or Land Registry.
Once the discharge is registered, the bank’s particular registered charge will no longer remain on the title.
How Does the Hong Leong Bank Discharge Process Generally Work?
Although every matter may differ, the process commonly involves:
- Checking the property title and existing Hong Leong Bank charge;
- Confirming that the relevant housing loan has been fully settled;
- Obtaining or arranging for the necessary security documents to be released;
- Preparing the Discharge of Charge documentation;
- Arranging for the relevant documents to be executed;
- Attending to any applicable stamping or registration requirements; and
- Presenting the discharge at the relevant Land Office or Land Registry.
Your lawyer can coordinate the documentation and liaise with the relevant parties throughout the process.
Discharge of Charge or Deed of Receipt and Reassignment?
The correct procedure depends largely on the title status of the property.
Property with an Individual or Strata Title
If Hong Leong Bank has a registered charge over the title, the appropriate procedure will generally be a Discharge of Charge.
Property Without an Individual or Strata Title
If the property was financed when it was still under a master title, the bank’s security may instead have been created by way of an assignment.
In such circumstances, a Deed of Receipt and Reassignment may be required after the loan has been fully settled.
It is therefore important to check the original financing and property documents rather than assuming that Form 16N applies to every property.
Why Deal With the Discharge After Full Settlement?
Completing the discharge helps ensure that the registered title reflects the fact that the particular bank charge has been released.
It may also avoid having to deal with an old outstanding charge at a later stage when you wish to sell, transfer or refinance the property.
For property owners who intend to retain the property after repaying the housing loan, it is therefore worth checking whether the discharge process has been completed.
Can a Conveyancing Lawyer Assist?
Yes.
A conveyancing lawyer can review the title and financing documents, determine the appropriate procedure, liaise with the relevant parties, prepare the required documentation and attend to registration of the discharge.
Need Assistance With a Hong Leong Bank Discharge of Charge?
TEH & YU assists property owners with conveyancing matters including Discharge of Charge following full settlement of housing loans.
If you have fully repaid your Hong Leong Bank housing loan and would like to complete the discharge of the bank’s registered charge, we can review the relevant documents and assist with the necessary process.
Contact us for assistance with a Hong Leong Bank Discharge of Charge in Malaysia.
Frequently Asked Questions
I have fully settled my Hong Leong Bank housing loan. Is that the end of the process?
If the bank has a registered charge over your property title, you still need to complete and register a Discharge of Charge.
Do I need my property title for the discharge?
The title and existing registered charge are important documents in determining the appropriate discharge process. Your lawyer can check the title records and relevant security documentation.
What is the difference between loan settlement and discharge?
Loan settlement concerns repayment of the outstanding financing. A Discharge of Charge concerns the removal of the bank’s registered security from the property title.
Is Form 16N always required?
No. Form 16N generally applies where there is a registered charge. If the property has no individual or strata title and the security was created by assignment, a Deed of Receipt and Reassignment may instead be appropriate.
Can I appoint a lawyer after my Hong Leong Bank loan has already been fully paid?
Yes. You may appoint a conveyancing lawyer to review the status of the property and attend to the appropriate discharge documentation. Contact us for more info.
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.