DISCHARGE OF CHARGE FOR INDIVIDUAL OR STRATA TITLE OR MASTER TITLE
DISCHARGE OF CHARGE FOR INDIVIDUAL OR STRATA TITLE
A Discharge of Charge is the legal process of removing a bank’s registered charge over a property after the borrower has fully settled the housing loan. When a property is financed by a bank, the bank registers a charge against the individual or strata title as security for the loan. Once the loan has been fully redeemed, the bank executes the relevant discharge documents to release its interest in the property. The discharge must be registered at the relevant Land Office before the charge is officially removed from the title. Upon completion, the property is free from the bank’s charge, allowing the property owner to sell, transfer or refinance the property without any encumbrance.
Documents Required
• Copy of the property owner’s Identity Card (NRIC/Passport);
• Redemption Statement issued by the bank;
• Letter of Full Settlement or Redemption Confirmation;
• Form 16N (Discharge of Charge) duly executed by the bank;
• Any additional documents which may be required depending on the bank’s or Land Office’s requirements.
Timeframe
The overall process generally takes approximately 2 to 8 weeks, depending on:
• The time taken by the bank to prepare and execute the discharge documents;
• The completeness of the documents provided;
• The processing time of the Land Office.
Estimated Legal Fees
Legal fees vary depending on the law firm’s professional charges and the complexity of the matter. Generally, the fees range from approximately RM800 to RM1,500, excluding disbursements such as:
• Registration fees;
• Land search fees;
• Stamping fees (if applicable);
• Travelling and miscellaneous expenses.
Steps Involved
1. Borrower fully settles the housing loan.
2. Bank issues the redemption statement and prepares the discharge documents.
3. The solicitor receives the documents from the bank.
4. The solicitor arranges for adjudication and lodges Form 16N and the relevant documents for registration at the Land Office.
5. Upon successful registration, the charge is removed from the title and the original title is returned to the property owner.
Conclusion
A properly registered Discharge of Charge ensures that the property is free from the bank’s registered charge, allowing the owner to proceed with future transactions such as sale, transfer or refinancing more smoothly, while avoiding unnecessary legal complications.
RECEIPT AND REASSIGNMENT FOR PROPERTIES UNDER MASTER TITLE
Not all properties in Malaysia have an individual or strata title at the time they are purchased. For properties that remain under a master title, no registered charge is created over the title at the Land Office because the separate title has not yet been issued. Instead, the purchaser assigns his or her rights under the Sale and Purchase Agreement to the bank through a Deed of Assignment as security for the housing loan. Once the housing loan has been fully settled, the bank releases its security by executing a Deed of Receipt and Reassignment (DRR). This document confirms that the borrower has discharged all obligations under the loan facility and that all rights and interests assigned to the bank are reassigned to the purchaser. As there is no registered charge over an individual title, no registration at the Land Office is required.
Documents Required
• Copy of the purchaser’s Identity Card (NRIC/Passport);
• Redemption Statement or Full Settlement Statement issued by the bank;
• Copy of the Sale and Purchase Agreement;
• Copy of the Deed of Assignment (if available);
• Deed of Receipt and Reassignment executed by the bank; and
• Any additional documents required by the bank.
Timeframe
The process generally takes two (2) to six (6) weeks, depending on how quickly the bank prepares the Deed of Receipt and Reassignment and releases the original security documents. As there is no registration at the Land Office, the process is generally shorter than a discharge involving an individual or strata title.
Estimated Legal Fees
Legal fees vary according to the law firm and the complexity of the transaction. Generally, professional fees range from approximately RM600.00 to RM1,200.00, excluding disbursements such as courier charges and other administrative expenses.
Steps Involved
1. The borrower fully redeems the housing loan.
2. The bank confirms full settlement and prepares the Deed of Receipt and Reassignment.
3. The bank releases the original security documents to the solicitor or purchaser.
4. The solicitor verifies that all security documents have been properly executed and released.
5. The original Sale and Purchase Agreement, Deed of Assignment and Deed of Receipt and Reassignment are returned to the purchaser for safekeeping until the individual or strata title is issued or the property is sold or refinanced.
Conclusion
Although properties under a master title do not require a registered Discharge of Charge, it remains important for purchasers to complete the legal release of the bank’s security by obtaining the Deed of Receipt and Reassignment. Proper safekeeping of these documents ensures that future transactions involving the property can be carried out efficiently and without unnecessary legal issues.
A Discharge of Charge is the legal process of removing a bank’s registered charge over a property after the borrower has fully settled the housing loan. When a property is financed by a bank, the bank registers a charge against the individual or strata title as security for the loan. Once the loan has been fully redeemed, the bank executes the relevant discharge documents to release its interest in the property. The discharge must be registered at the relevant Land Office before the charge is officially removed from the title. Upon completion, the property is free from the bank’s charge, allowing the property owner to sell, transfer or refinance the property without any encumbrance.
Documents Required
• Copy of the property owner’s Identity Card (NRIC/Passport);
• Redemption Statement issued by the bank;
• Letter of Full Settlement or Redemption Confirmation;
• Form 16N (Discharge of Charge) duly executed by the bank;
• Any additional documents which may be required depending on the bank’s or Land Office’s requirements.
Timeframe
The overall process generally takes approximately 2 to 8 weeks, depending on:
• The time taken by the bank to prepare and execute the discharge documents;
• The completeness of the documents provided;
• The processing time of the Land Office.
Estimated Legal Fees
Legal fees vary depending on the law firm’s professional charges and the complexity of the matter. Generally, the fees range from approximately RM800 to RM1,500, excluding disbursements such as:
• Registration fees;
• Land search fees;
• Stamping fees (if applicable);
• Travelling and miscellaneous expenses.
Steps Involved
1. Borrower fully settles the housing loan.
2. Bank issues the redemption statement and prepares the discharge documents.
3. The solicitor receives the documents from the bank.
4. The solicitor arranges for adjudication and lodges Form 16N and the relevant documents for registration at the Land Office.
5. Upon successful registration, the charge is removed from the title and the original title is returned to the property owner.
Conclusion
A properly registered Discharge of Charge ensures that the property is free from the bank’s registered charge, allowing the owner to proceed with future transactions such as sale, transfer or refinancing more smoothly, while avoiding unnecessary legal complications.
RECEIPT AND REASSIGNMENT FOR PROPERTIES UNDER MASTER TITLE
Not all properties in Malaysia have an individual or strata title at the time they are purchased. For properties that remain under a master title, no registered charge is created over the title at the Land Office because the separate title has not yet been issued. Instead, the purchaser assigns his or her rights under the Sale and Purchase Agreement to the bank through a Deed of Assignment as security for the housing loan. Once the housing loan has been fully settled, the bank releases its security by executing a Deed of Receipt and Reassignment (DRR). This document confirms that the borrower has discharged all obligations under the loan facility and that all rights and interests assigned to the bank are reassigned to the purchaser. As there is no registered charge over an individual title, no registration at the Land Office is required.
Documents Required
• Copy of the purchaser’s Identity Card (NRIC/Passport);
• Redemption Statement or Full Settlement Statement issued by the bank;
• Copy of the Sale and Purchase Agreement;
• Copy of the Deed of Assignment (if available);
• Deed of Receipt and Reassignment executed by the bank; and
• Any additional documents required by the bank.
Timeframe
The process generally takes two (2) to six (6) weeks, depending on how quickly the bank prepares the Deed of Receipt and Reassignment and releases the original security documents. As there is no registration at the Land Office, the process is generally shorter than a discharge involving an individual or strata title.
Estimated Legal Fees
Legal fees vary according to the law firm and the complexity of the transaction. Generally, professional fees range from approximately RM600.00 to RM1,200.00, excluding disbursements such as courier charges and other administrative expenses.
Steps Involved
1. The borrower fully redeems the housing loan.
2. The bank confirms full settlement and prepares the Deed of Receipt and Reassignment.
3. The bank releases the original security documents to the solicitor or purchaser.
4. The solicitor verifies that all security documents have been properly executed and released.
5. The original Sale and Purchase Agreement, Deed of Assignment and Deed of Receipt and Reassignment are returned to the purchaser for safekeeping until the individual or strata title is issued or the property is sold or refinanced.
Conclusion
Although properties under a master title do not require a registered Discharge of Charge, it remains important for purchasers to complete the legal release of the bank’s security by obtaining the Deed of Receipt and Reassignment. Proper safekeeping of these documents ensures that future transactions involving the property can be carried out efficiently and without unnecessary legal issues.
Aug 11,2026