What happens to a registered mortgage when the underlying debt is fully repaid?
Correct Answer
A) It remains on title until formally discharged
A registered mortgage remains on the Certificate of Title until it is formally discharged by the mortgagee lodging a discharge document with the land titles office. Payment alone does not automatically remove the mortgage from the title.
Why This Is the Correct Answer
A registered mortgage stays on the title until the mortgagee signs a discharge and it is registered, usually electronically. Repaying the debt ends the loan, but only a registered discharge removes the mortgage from the register.
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