Mortgage Release Letter Template for South Africa

The Mortgage Release Letter is a crucial document in South African property and banking law, issued when a property owner has fully satisfied their mortgage obligations. This document is required when a mortgage has been paid in full, whether through regular payments, early settlement, or property sale. It serves multiple purposes: confirming the discharge of the mortgage, authorizing the cancellation of the bond registration at the Deeds Office, and providing evidence that the property is no longer encumbered. The letter must comply with various South African regulations, including the Deeds Registries Act and National Credit Act, and typically includes specific property details, mortgage account information, and formal authorization for bond cancellation. This document is essential for property transfers, refinancing arrangements, or simply confirming unencumbered ownership status.

1. Letterhead and Date: Bank's official letterhead including registration details, contact information, and current date

2. Recipient Details: Full name and address of the mortgagor (property owner) and their reference number

3. Property Details: Legal description of the property including erf number, physical address, and title deed number

4. Mortgage Account Information: Mortgage bond number, original loan amount, and confirmation of full settlement

5. Confirmation of Release: Clear statement confirming that the mortgage has been discharged and the bank releases its security interest

6. Authorization Statement: Declaration authorizing the Registrar of Deeds to cancel the mortgage bond

7. Bank Official Details: Name, title, and signature of authorized bank official