Once the mortgagee has been satisfied after the sale of the property, the mortgagor will sign a certificate of discharge. This certificate once recorded will take away the lien from the property. In real property law, the lender ensures their security interest in a collateral they lended on by placing a lien on the property. The lien informs the public and acts as proof that a lender has vested interest on a property. After a loan has been satisfied, a borrower can request a certificate of discharge. This certificate provides the property owner assurances that the lender no longer holds an interest in a property and that the previous relationship between the lender and the borrower is terminated.
Menu
