Finished paying off your Public Bank housing loan?
Many property owners assume that once the final instalment is paid, the bank’s interest over the property automatically disappears.
However, if Public Bank has a registered charge over your property title, a separate legal process is generally required to formally remove that charge.
This process is known as a Discharge of Charge.
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I Have Fully Paid My Public Bank Loan, What Should I Do Next?
The first step is to ensure that the financing facility has been fully settled.
After settlement, the documents relating to Public Bank’s security over the property will need to be dealt with.
Where the property already has an individual or strata title and Public Bank is registered as the chargee, the usual procedure is to prepare and register a Discharge of Charge.
The purpose is to release the property from the bank’s registered security after repayment of the financing facility.
Will Public Bank’s Name Automatically Be Removed From My Property Title?
No.
Payment of the housing loan and removal of the registered charge are separate matters.
Where a charge has been registered over the property, the discharge must be properly executed and registered before the bank’s registered interest is removed from the title.
Under section 278 of the National Land Code, the prescribed instrument for this purpose is Form 16N – Discharge of Charge.
What Does a Conveyancing Lawyer Do?
Your lawyer can assist with the documentation and registration required after the Public Bank loan has been fully settled.
Depending on the matter, this may include:
- reviewing the property title and previous loan documents;
- liaising with Public Bank or its appointed solicitors;
- obtaining the relevant security documents;
- preparing the necessary discharge documentation;
- attending to stamping and registration requirements; and
- following up with the relevant Land Office or Land Registry.
The precise procedure may vary depending on the property, title and financing documentation.
What Happens to My Original Title?
Where an original issue document of title has been held as part of the bank’s security, arrangements will generally need to be made for the relevant title and security documents to be released as part of the settlement and discharge process.
Once the discharge is registered, the title records should reflect that Public Bank’s registered charge has been removed.
You should retain the relevant registered documents safely, particularly if you intend to sell, transfer or refinance the property in the future.
What If My Property Is Still Under a Master Title?
If no individual or strata title has been issued, the bank’s security may have been created through an assignment rather than a registered charge.
In that situation, the relevant procedure may be a Deed of Receipt and Reassignment, rather than Form 16N.
Your lawyer can determine which procedure applies by reviewing the property and financing documents.
Why Should I Complete the Discharge?
Even if you are not planning to sell the property immediately, it is useful to ensure that the title properly reflects that the housing loan has already been settled.
Completing the discharge can also make matters more straightforward if you later decide to:
- sell the property;
- transfer the property;
- refinance with another bank; or
- use the property as security for a new financing facility.
Need Assistance With a Public Bank Discharge of Charge?
TEH & YU provides conveyancing services for property owners who have fully settled their housing loans and require assistance with a Discharge of Charge.
We can review your title and financing documents, liaise with the relevant parties and attend to the necessary documentation and registration.
Contact us if you require assistance with a Public Bank Discharge of Charge in Malaysia.
Frequently Asked Questions
My Public Bank housing loan is fully paid. Do I still need to do anything?
If Public Bank has a registered charge over your property title, the charge will generally need to be formally discharged and registered before it is removed from the title.
Which form is used to remove the charge?
For a registered charge under the National Land Code, the prescribed instrument is Form 16N – Discharge of Charge.
Can I appoint my own lawyer to handle the discharge?
Yes. A conveyancing lawyer can assist with the necessary documentation, correspondence and registration involved in completing the discharge.
What if there is no individual or strata title yet?
If the property is still held under a master title and the bank’s security was created through an assignment, a Deed of Receipt and Reassignment may be required instead of a Discharge of Charge.
Further reading: Housing Loan Fully Settled in Malaysia: What Should You Do 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.