On 11 October 2021, the Real Property Amendment (Certificates of Title) Act 2021 commenced, which abolished the Certificates of Title (CTs) and the control of the right to deal (CoRD) framework. All existing CTs have been cancelled and CTs will no longer be issued. Existing CTs will not need to be produced, and CoRD holder consent will not be required, for a dealing or plan to be registered. All existing Guidelines subject to this change are currently being reviewed and will be updated to reflect these changes. For further information regarding the abolition of CTs, please see https://www.registrargeneral.nsw.gov.au/property-and-conveyancing/eConveyancing/abolition-of-certificates-of-title

Discharge of mortgage

Form 05DM (PDF 300 KB)

Dealing type - DM

Stamp duty - not required

Certificate of Title - required

Not required for a discharge of a mortgage of lease, mortgage, or charge.

NOS form - not required

Standard form of Caveat - does not prevent registration.

Priority Notice noted on the Register - see Priority Notice page.

Note:  Electronic lodgment is mandatory for all transactions involving only stand-alone Discharges of Mortgage & Mortgages signed on or after 1 March 2017 or combination of Discharges of Mortgage & Mortgages where all the mortgagees are Authorised Deposit-Taking Institutions (ADIs) and the dealings are signed on or after 1 August 2017.

Electronic lodgment is mandatory for all transactions involving only standalone Discharges of Mortgage & Mortgages or combination of Discharges of Mortgage & Mortgages by all mortgagees signed on or after 1 July 2018 and any combination of mainstream dealings signed on or after 1 July 2019.

A standalone Discharge of Mortgage by a first mortgagee affecting a folio of the Register with an eCT must be lodged electronically, regardless of the date of signing, except for a Discharge of Mortgage signed prior to the issue of the eCT that is accompanied by the paper CT that was current prior to the issue of the eCT.

Where transactions involving Discharges of Mortgages, Mortgages or as part of the mainstream dealings and the mortgagees are excluded from electronic lodgment or circumstances allow the Registrar General to waive electronic lodgment under Conveyancing Rule 8.2, 8.7, the incoming dealings must be accompanied with the Conveyancing Rules Exceptions form indicating the exemption. The Conveyancing Rules Exceptions form will be scanned with the dealing.

A dealing lodged in paper accompanied by a caveator’s consent or other supporting documentation may be accepted without a Conveyancing Rules Exceptions form.

The discharge may only affect the interest or share of a mortgagor and/or mortgagee, or part of the land. Note  A mortgage affecting a lease cannot be partially discharged as regards a premises description.

A discharge of part of the principal sum must be lodged as a variation on Variation of Mortgage form 05VM.

An extra lodgment fee is payable for each additional mortgage where more than one mortgage by the same mortgagee is being discharged on the one form.

No extra fee is payable where separate Discharge of Mortgage forms affecting the same mortgage and executed by individual mortgagees are lodged together. The separate documents will be treated as a single dealing. The additional Discharge of Mortgage forms are attached to the initial dealing and are treated as an annexure for execution purposes.

Note

  • the dealing must not be used to discharge a mortgage where the mortgagee is shown in the First Schedule of the Torrens Title Register and the mortgagor's interest is protected by a Registrar General's caveat.  The appropriate manner of discharge is by lodgment of a Transfer by Way of Discharge of Mortgage form 01DT (PDF 488KB).
  • for a discharge of a charge or a covenant charge, see Discharge of charge page.

(A) The reference to title for the land affected must be stated.

(B) The registered number of the lease, mortgage, or charge affected by a mortgage being discharged must be stated. The reference to title for the land affected must be stated.

(D) The registered number of the mortgage being discharged must be stated.

(E) The full name of the mortgagee must be stated and must be identical to the name of the mortgagee as shown on the Torrens Title Register.

A change of name of the mortgagee must be supported by the appropriate evidence. Note  A Record New Registered Proprietor form 04RP pursuant to s46C Real Property Act 1900 must be lodged to record a friendly society on the Register or a certificate evidencing the vesting of the mortgagees (trustees) in the incorporated friendly society must be furnished (the name will not be changed on the Register) before the mortgage can be discharged.

Because the powers of the head mortgagee pass to the sub-mortgagee, see s52A Real Property Act 1900, the following must be considered:

  • a sub-mortgagee may execute a discharge of the sub-mortgage alone
  • a sub-mortgagee may execute a discharge of the head mortgage, in which case both mortgages are removed and
  • a discharge of the head mortgage executed by the mortgagee of that mortgage must be accompanied by a discharge of the sub-mortgage executed by the sub-mortgagee. See rights of a sub-mortgagee.

Where a mortgagee has died a Notice Of Death form 02ND or a Transmission Application form 03AD or 03AE, as is appropriate, must be lodged before the mortgage can be discharged.

(F) If the mortgage is to be partially discharged, the full name of the affected mortgagor must be stated and must be identical to the name as shown on the Register. If the mortgage is to be wholly discharged, this panel may be left blank.

(G) The term that does not apply must be deleted and verified. Any reference to release of personal liability etc will be ignored.

(H) The dealing must be executed by the mortgagee and be witnessed, or be executed on the mortgagee's behalf as follows:

  Attorney and witnessed Solicitor or Barrister Authorised Officer and witnessed Licensed Conveyancer
Mortgagee1 Tick Cross Tick Cross

1    A mortgage may be discharged by persons other than the mortgagee in the following instances:

  • upon certification by an officer of the Court pursuant to s98 Conveyancing Act 1919
  • upon lodgment of a vesting Order pursuant to s74 Trustee Act 1925 (infant or mentally incapable mortgagee) or s75 Trustee Act 1925 (deceased mortgagee) or
  • upon lodgment of a discharge executed by the Australian Securities and Investment Commission (ASIC) pursuant to s601AF Corporations Act 2001 (Commonwealth) in relation to a deregistered company.

See execution requirements for companies, witnesses etc. pages.

Staff processing information

Where paper transactions involving only Discharges of Mortgage and Mortgages where all mortgagees are ADIs are lodged without a Conveyancing Rules Exceptions form, the dealings must be accepted and a requisition raised. A dealing lodged in paper accompanied by a caveator’s consent or other supporting documentation may be accepted without a Conveyancing Rules Exceptions form.

If in order proceed with registration except for the following.

Refer to SM99

Where the mortgage being discharged includes an easement.

Registration procedure

NOTFN BRT FORWARD    select mortgage to be removed

NOTFN TB REMOVED    click arrow button to remove selected notification.

Where the mortgage or charge is coded AA etc

PRIME CODE    code of mortgage being discharged as shown on the Register

PRIME NO.    number of mortgage.

Note

  • the Prime Code number of an Old System mortgage must be entered as shown on the Register but without a space between the BK and NO, e.g. BK5849 NO143 is entered as BK5849NO143.
  • an early 6 digit dealing number that does not have an alpha prefix must be preceded by an equals sign =, e.g. 321456 is entered as =321456.

Discharge of the share/interest of a mortgagor

TRANSACTION    click Cancel and select UNDR

PRIME CODE    code of mortgage as shown on the Register

PRIME NO.    number of mortgage

SUB CODE    UMD

DETAILS    the share/interest of [name of mortgagor].

Discharge of the share/interest of a mortgagee

TRANSACTION    click Cancel and select MOD

PRIME CODE    code of mortgage as shown on the Register

PRIME NO.    number of mortgage

CLICK  Names

REMOVE Mortgagee whose share/interest is being discharged

DETAILS          (See [number of Discharge of Mortgage]).

Where dealing numbers of previous notifications that changed mortgagee are shown in the DETAILS field, Add [number of Discharge of Mortgage], e.g: (See AA123456 AB123456) 

Discharge of a mortgage of lease, mortgage or charge

TRANSACTION    click Collect Notification

PRIME CODE    code of head mortgage etc as shown on the Register

PRIME NO.    number of head mortgage etc

SUB CODE    code of mortgage being discharged as shown on the Register

SUB NO.    number of mortgage.

Discharge of  a sub-mortgage as regards the share/interest of a sub-mortagagor 

TRANSACTION click Cancel and select UNDR

PRIME CODE    code of lease or mortgage affected by the sub-mortgage as shown on the Register

PRIME NO.     number of lease or mortgage

SUB CODE code of sub-mortgage

SUB CODE NO. number of sub-mortgage

SUB CODE    UMD

DETAILS     the share/interest of [name of sub-mortgagor].

Discharge of  a sub-mortgage as regards the share/interest of a sub-mortagagee

TRANSACTION click Cancel and select MOD

PRIME CODE    code of lease or mortgage affected by the sub-mortgage as shown on the Register

PRIME NO.     number of lease or mortgage

SUB CODE code of sub-mortgage

SUB CODE NO. number of sub-mortgage

CLICK  Names

REMOVE Mortgagee whose share/interest is being discharged

DETAILS  (See [dealing numbers of previous notifications that changed sub-mortgagee] [number of Discharge of Sub-Mortgage]).

Discharge of a mortgage not carried forward on conversion

TRANSACTION    click Cancel and select HIST.

Marginally note the Discharge of Mortgage form: 'Mortgage [dealing number] not carried forward on conversion'.