Cancelling An Amortized Mortgage Loan On An Immovable Property in Zimbabwe

Introduction

Well done! You ran the race and finished the course! The mortgage loan you took out has been amortized...all that is needed is to unencumber the property by having the lien (i.e. the superseding third-party right of a creditor over an immovable property) removed from the title deed.

Here is how the process goes down:

Process:

1) Report to the mortgagee (the lender of the funds) with a copy of the mortgage bond and proof of its amortisation: If the mortgagor (borrower) reports in person, they will need to produce identification.

If an emissary or assignee has been dispatched on behalf of a natural person mortgagor, because of the sensitive documents they will be receiving (namely, a formal consent to cancel the mortgage bond, as well as release of the withheld personal copy of the deed of transfer held as security), typically, a special specific power of attorney prepared by a notary public will need to be ratified and subsequently presented to the mortgages officer serving them (circa March 2024, this costs in the ballpark of US $200).

If the mortgagor is deceased, the executor or executrix of the deceased estate will also need to present the death certificate of the deceased, as well as letters of administration from the Office of the Master of High Court.

If the mortgagor is a juristic person (e.g. a company or a trust), the mortgages officer must be presented with a copy of a resolution of the board of directors or board of trustees of the company or trust, as well as the special power of attorney, to help aver or validate the mandate and identity of the assignee.

2) Pay the safe storage/custody fee for the title deed to be released: Once the mortgagor or their assignee has been identified and vetted, they will likely be asked to discharge a storage or safe custody fee or levy (for the safekeeping of the deed, which the mortgagee held in their safe).

The figure may vary. For someone whom i had the honor of assisting, circa March 2023, and who had had their deed of transfer in the custody of the mortgagee for 18 years, the storage fee levied was US$50, so, let us just go with that figure, for estimation'/approximation's sake; however, endeavor to find out in advance, as well as for certain, in your particular scenario.

3) Receive the personal copy of the deed of transfer, as well as an official missive (document or note) from the mortgagee, which will give a conveyancer (either of one's own choosing, or recommended by the mortgagee) the greenlight to approach the Registrar of deeds and cancel the mortgage.

4) Immediately report to a conveyancer, and mandate them to have the mortgage bond cancelled: As always, opt for a conveyancer who has a proven track record, penchant for conscientiousness, and is in good standing with Law Society of Zimbabwe (in accordance with the Legal Practitioners' Act Chapter 27:07 ). Fees for services may vary between US$250 to US$500 (circa March 2024).

5) Receive the unencumbered deed of transfer from the conveyancer after completion of their mandate: After anywhere between 2 and 3 calendar months, the conveyancer should have completed the job of having the mortgage bond cancelled, and will hand over the freeholder's copy of the deed of transfer back to them.

For good measure, carry out a deeds search at the Deeds Office (Century House in Harare, or Tredgold Building in Bulawayo), and the copy of the deed held at the deeds office should be stamped "cancelled" over the mortgage bond which was registered on the first page of the deed, as well as a "consent to cancellation" number (e.g. 7777/24) which may also be looked up at the Deeds Office.

Conclusion:

There we have it, and voila! An unencumbered title deed with no mortgage lien.

An unencumbered deed is a sine-qua-non for any smooth and legitimate immovable property transfer (be it a property sale, transfer by way of donation or bequeathing, e.g. to a minor, a relative, a trust, or to a beneficiary of a deceased estate, et cetera).

Thank you for your precious time and attention...good-speed🤗.

Tatenda Kangwende is proud and honored to be, "Your friendly neighborhood realtor." For any purposeful and productive real-estate related business, please contact him via:

Mobile (SMS, GSM calls, instant-messaging): +263 714 729 043