How to Discharge a Paid-Off Mortgage From Title in Alberta

You made your last payment, but when you look at your title the lender's mortgage is still listed. That is common, because paying a debt and removing a registered charge are two separate steps.

This article explains how a discharge works in Alberta, who normally prepares it, what the law says about the lender's duties and what you can do if the lender does not cooperate.

This article covers the law of Alberta.

Why the mortgage is still on title

A mortgage in Alberta is a charge on land created to secure a debt or loan. A registered mortgage works as security only. It does not transfer the land, so you stayed the registered owner throughout.

Because the mortgage was registered on title, paying it off does not remove it automatically. The Registrar discharges a mortgage, wholly or in part, and enters the discharge on the certificate of title. Until that happens, the charge remains visible to anyone who searches your title.

What the lender must do

Once a mortgage is fully paid, the lender must give you a discharge of mortgage within 30 days. The lender cannot charge a fee or expense for the discharge, and a lender who fails to provide it or charges for it commits an offence with a fine of up to $500.

Lenders often do not send written confirmation of payout unless you ask, so request it in writing.

How the discharge is registered

A discharge is normally a discharge in the prescribed form signed by the mortgagee and accompanied by the proper affidavit of execution. A lawyer, notary or commissioner of oaths usually prepares the documents, and they are submitted to the land title registry office, which removes the lender's rights and updates title.

Documents go to a Land Titles office on the prescribed form, by mail or drop-off, and fees are required at the time of submission. In-person service was paused in Edmonton and Calgary, so confirm your options by phone. Once the document is registered, the submitter receives a registration notice. Once the discharge is entered on title, the land stops being liable for the principal sum or the part discharged.

• Joint lenders: where money was advanced on a joint account, one of several mortgagees may sign the discharge.
• Joint tenancy lenders: if a mortgage is held in joint tenancy, the surviving holders may sign after one dies.

Costs and timing

Your lender cannot charge for the discharge itself. Separate professional fees for a lawyer, notary or commissioner of oaths typically run $400 to $2,500, according to general ranges from the Financial Consumer Agency of Canada. Land Titles fees are set by the Tariff of Fees Regulation, so ask for the current amount before you submit.

How long Land Titles takes to register a document is not something you can count on. Ask whoever submits the documents for a current estimate.

If the lender will not sign

If a lender cannot or will not sign a discharge, a judge's certificate can be used. One kind confirms the secured money has been paid. Another confirms the right to recover the money has been extinguished or is unenforceable under limitations legislation. The Registrar can then discharge the mortgage.

How a judge's certificate is obtained depends on your situation, so it is worth confirming the steps with a lawyer early. Once the discharge is entered on title, the land stops being liable for the principal sum or the part discharged.

What to do next

• Confirm the mortgage and any related HELOC are fully paid.
• Ask the lender in writing to confirm payment in full.
• Write to the lender asking for the discharge, noting the 30-day rule and that no fee may be charged.
• Have a lawyer, notary or commissioner of oaths prepare and submit the documents if the lender does not.
• Search your title afterward to confirm the discharge was entered.

A discharge is also needed when you switch lenders or sell the property. A lawyer can confirm the steps for your situation.

Frequently asked questions