Document background
A Mortgage Release Letter is a crucial document in Swiss property transactions, issued when a borrower has fully satisfied their mortgage obligations. This document, governed by the Swiss Civil Code (ZGB) and cantonal regulations, serves as official confirmation that the lending institution releases its security interest in the property. The letter typically follows full repayment of the mortgage or satisfaction of other release conditions. It must contain specific elements required by Swiss law, including precise property identification, mortgage details, and formal release declarations. The Mortgage Release Letter is essential for updating the land register (Grundbuch) and removing the mortgage encumbrance, enabling the property owner to sell or refinance the property without the existing mortgage burden.
