Have you fully settled your Maybank housing loan?
If Maybank has a registered charge over your property, settling the loan does not necessarily mean that the charge shown on the property title is automatically removed.
A Discharge of Charge is generally required to formally discharge the bank’s registered charge from the property title.
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What Is a Discharge of Charge?
When a property with an individual or strata title is financed by a bank, the bank will usually register a charge over the property as security for the loan.
After the loan has been fully settled, the registered charge can be discharged.
Under the National Land Code, a discharge of a registered charge is effected using Form 16N – Discharge of Charge.
The discharge documentation will subsequently need to be presented to the relevant Land Office or Land Registry for registration.
Maybank Discharge of Charge Process
If your Maybank property loan has been fully settled, the process will generally involve:
- Confirming that the Maybank loan or financing has been fully settled;
- Obtaining the relevant security and discharge documents from Maybank;
- Preparing and attending to the necessary Discharge of Charge documentation;
- Arranging for execution of the relevant discharge documentation by the bank;
- Attending to stamping and other applicable requirements; and
- Presenting the Discharge of Charge for registration at the relevant Land Office or Land Registry.
The exact procedure and documents required may differ depending on the property, title and financing documentation.
What Is Form 16N?
Form 16N is the prescribed form used to discharge a registered charge under section 278 of the National Land Code.
Once the discharge has been properly registered, the registered charge in favour of the bank is removed from the title.
This is particularly relevant where the owner intends to keep the property after fully settling the housing loan.
What If My Property Does Not Have an Individual or Strata Title?
Not every property uses a registered charge.
For properties where the individual or strata title has not yet been issued and the bank’s security was created through an assignment, the relevant document may instead be a Deed of Receipt and Reassignment (R&R).
Your lawyer can review the existing financing and title documents to determine which procedure applies.
Do I Need to Attend to the Discharge Immediately?
Property owners sometimes fully repay their housing loan but leave the bank’s charge registered on the title.
It is generally sensible to attend to the discharge documentation after full settlement so that the title records accurately reflect the current position.
Completing the discharge may also avoid unnecessary complications when the property is subsequently sold, transferred or used for another financing transaction.
Need Assistance With a Maybank Discharge of Charge?
TEH & YU provides conveyancing services including Discharge of Charge matters for property owners who have fully settled their housing loans.
We can assist with reviewing the relevant property and financing documents, liaising with the bank where required, preparing the discharge documentation and attending to registration at the relevant Land Office or Land Registry.
Contact us if you require assistance with a Maybank Discharge of Charge in Malaysia.
Frequently Asked Questions
I have fully paid my Maybank housing loan. Is the charge automatically removed?
No. Where Maybank has a registered charge over the property title, the necessary discharge documentation must generally be completed and registered before the charge is formally removed from the title.
What form is used for a Discharge of Charge?
For a registered charge under the National Land Code, Form 16N is the prescribed Discharge of Charge form.
What if my property does not have an individual or strata title?
If the financing was secured through an assignment rather than a registered charge, a Deed of Receipt and Reassignment may be required instead.
Can a lawyer handle the Maybank discharge process for me?
Yes. A conveyancing lawyer can review the security documents, correspond with the relevant parties, prepare the necessary discharge documentation and attend to registration of the discharge.
Further reading: 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.