The title of a property has the name of the person who lent the money.
When the mortgage is fully paid off, what is the process called to clear the name off the title? I saw it recently and can't remember.

trade4us2 - 2021-06-02 17:27:00

This message was deleted.

andrew697 - 2021-06-02 17:28:00

If you don't discharge your mortgage, the council can take council rates from your bank account if in default:
https://bankomb.org.nz/guides-and-cases/quick-guides/other/o
verdue-council-rates/

ian1990 - 2021-06-02 17:36:00

It’s called “party time”... ???? ???? ???????? ???? ????

lovelurking - 2021-06-02 17:39:00

Once the mortgage is discharged the property is then freehold.

sparkychap - 2021-06-02 17:40:00

andrew697 wrote:

Mortgage is "discharged" and taken off the Title (if you want it removed).

Thanks. I have been trying to get it removed for many years. It is the most complicated estate ever seen. There have been 8 different client managers.

trade4us2 - 2021-06-02 17:43:00

trade4us2 wrote:

Thanks. I have been trying to get it removed for many years. It is the most complicated estate ever seen. There have been 8 different client managers.

Why so complicated?

sparkychap - 2021-06-02 17:53:00

trade4us2 wrote:

Thanks. I have been trying to get it removed for many years. It is the most complicated estate ever seen. There have been 8 different client managers.

probably because you need a lawyer to discharge the mortgage for you.?

gabbysnana - 2021-06-02 17:57:00

What happens if you decide to not have the mortgage discharged? You know in case you want another mortgage or need to borrow a certain amount for day a car or other biggish expense?

lakeview3 - 2021-06-02 18:14:00

lakeview3 wrote:

What happens if you decide to not have the mortgage discharged? You know in case you want another mortgage or need to borrow a certain amount for day a car or other biggish expense?

Then you leave the mortgage registered.

sparkychap - 2021-06-02 18:27:00

trade4us2 wrote:

Thanks. I have been trying to get it removed for many years. It is the most complicated estate ever seen. There have been 8 different client managers.

I’m sorry trade4us2, my comments were inappropriate now I’ve read this post. I hope you get it sorted soon and that you have a lawyer working on your behalf...

lovelurking - 2021-06-02 18:40:00

lovelurking wrote:

I’m sorry trade4us2, my comments were inappropriate now I’ve read this post. I hope you get it sorted soon and that you have a lawyer working on your behalf...

Well it would be party time. Since I am the youngest, I may be the only beneficiary left. Unfortunately their kids will get their share.

trade4us2 - 2021-06-02 18:47:00

trade4us2 wrote:

Well it would be party time. Since I am the youngest, I may be the only beneficiary left. Unfortunately their kids will get their share.

It is entirely reasonable that the children of the deceased beneficiaries receive their parent's share. Not sure I like the attitude.

johnston - 2021-06-02 20:13:00

sparkychap wrote:

Then you leave the mortgage registered.

thanks does it cost anything I wonder? To ‘leave it open’ so to speak with nothing owing?

Edited by lakeview3 at 8:15 pm, Wed 2 Jun

lakeview3 - 2021-06-02 20:14:00

lakeview3 wrote:

does it cost anything I wonder?

no that’s why so many people just leave it.

sparkychap - 2021-06-02 20:16:00

johnston wrote:

It is entirely reasonable that the children of the deceased beneficiaries receive their parent's share. Not sure I like the attitude.

Why didn't they have a mortgage then?

trade4us2 - 2021-06-02 20:22:00

sparkychap wrote:

no that’s why so many people just leave it.

ok thanks. Probably best to advise bank you just want to leave it there and not fully discharge??? Are there any risks associated with this- not discharging it?? Thanks

lakeview3 - 2021-06-02 20:24:00

trade4us2 wrote:

Why didn't they have a mortgage then?

I guess you have the complication of Guarantees in favor your siblings children for other property using the security on the titles you are trying to discharge for final settlement of your parents estate?

Edited by ian1990 at 9:49 pm, Wed 2 Jun

ian1990 - 2021-06-02 21:45:00

ian1990 wrote:

I guess you have the complication of Guarantees in favor your siblings children for other property using the security on the titles you are trying to discharge for final settlement of your parents estate?

It's more complicated than you can imagine.
How can someone be forced to give back the money they have taken, if they don't have a mortgage?

trade4us2 - 2021-06-02 22:46:00

trade4us2 wrote:

It's more complicated than you can imagine.
How can someone be forced to give back the money they have taken, if they don't have a mortgage?

On demand interest free loan, but the lawyer who set it up failed to apply a second mortgage to secure the repayment of the principle?

ian1990 - 2021-06-03 01:25:00

sparkychap wrote:

Once the mortgage is discharged the property is then freehold.

That's a tongue in cheek statement, isn't it? I'm sure you know better.

webworth - 2021-06-03 03:21:00

webworth wrote:

That's a tongue in cheek statement, isn't it? I'm sure you know better.

We know that he knows.

amasser - 2021-06-03 10:17:00

ian1990 wrote:

On demand interest free loan, but the lawyer who set it up failed to apply a second mortgage to secure the repayment of the principle?

Unlikely. Do mortgage documents nowadays include details of a specific loan? Most bank mortgage documents covered all liabilities but my experience was a few years back.

amasser - 2021-06-03 10:21:00

amasser wrote:

Unlikely. Do mortgage documents nowadays include details of a specific loan? Most bank mortgage documents covered all liabilities but my experience was a few years back.

You are correct.

johnston - 2021-06-03 11:10:00

trade4us2 wrote:

Why didn't they have a mortgage then?

How would I know? They might.

johnston - 2021-06-03 11:25:00

Can someone explain if the op in writing "The title of a property has the name of the person who lent the money" means the name appears as the mortgagee or as the registered owner.

johnston - 2021-06-03 11:27:00

I'm totally confused. Also re: "freehold".... if you've paid the total mortgage off, and the home is fully in your name, is that "freehold" - the land is not leasehold or anything like that.

lyl_guy - 2021-06-03 11:48:00

lyl_guy wrote:

I'm totally confused. Also re: "freehold".... if you've paid the total mortgage off, and the home is fully in your name, is that "freehold" - the land is not leasehold or anything like that.

The term Freehold is used to describe a Title (same as Fee Simple) and also generically to describe a property with no mortgage. Confusing? Yep!

jeffqv - 2021-06-03 13:07:00

lyl_guy wrote:

I'm totally confused. Also re: "freehold".... if you've paid the total mortgage off, and the home is fully in your name, is that "freehold" - the land is not leasehold or anything like that.

Property is unencumbered if no mortgage

toyboy3 - 2021-06-03 13:42:00

lyl_guy wrote:

I'm totally confused. Also re: "freehold".... if you've paid the total mortgage off, and the home is fully in your name, is that "freehold" - the land is not leasehold or anything like that.

He was taking the proverbial. If you check you will see he has been on TM for years and never bought anything.Is that credible?

zak21 - 2021-06-03 15:39:00

What is it called when a mortgage is cleared?

A relief.

lythande1 - 2021-06-03 15:44:00

lythande1 wrote:

What is it called when a mortgage is cleared?

A relief.

Love it!

jeffqv - 2021-06-03 16:36:00

webworth wrote:

That's a tongue in cheek statement, isn't it? I'm sure you know better.

Just because we use a word to denote one thing doesn't mean it can't have alternative connotations.

sparkychap - 2021-06-03 17:34:00

haha thanks for the answers.... I think! But yes, it is one big relief!

lyl_guy - 2021-06-03 17:38:00

johnston wrote:

It is entirely reasonable that the children of the deceased beneficiaries receive their parent's share. Not sure I like the attitude.

Isn't that what the OP is saying - as well as indicating that it is a shame that the intended beneficiaries didn't/may not in fact receive any of that benefit. What's wrong with that?????

brouser3 - 2021-06-03 19:10:00

brouser3 wrote:

Isn't that what the OP is saying - as well as indicating that it is a shame that the intended beneficiaries didn't/may not in fact receive any of that benefit. What's wrong with that?????

Not the way I read it. He is bemoaning that the children of the deceased will receive their parents' share. Mind you I am having difficulty understanding what he is saying.

johnston - 2021-06-03 19:16:00

That was my reading too, Johnston.

sparkychap - 2021-06-03 19:26:00

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hooserat - 2021-06-03 20:41:00

trade4us2 wrote:

Why didn't they have a mortgage then?

Why would they need to have a registered mortgage if they were the beneficiary of an estate?

Edited by sarahb5 at 9:10 pm, Thu 3 Jun

sarahb5 - 2021-06-03 21:10:00

jeffqv wrote:

The term Freehold is used to describe a Title (same as Fee Simple) and also generically to describe a property with no mortgage. Confusing? Yep!

It really isn’t - have you ever seen a title that states that the “estate” is freehold?

sarahb5 - 2021-06-03 21:13:00

sarahb5 wrote:

Why would they need to have a registered mortgage if they were the beneficiary of an estate?

I would like to know the real story behind this.

johnston - 2021-06-03 22:42:00

johnston wrote:

I would like to know the real story behind this.

Me too because gift over to children if their parents die before receiving their distribution is a pretty standard term in a Will - I have it in mine and my parents both had it in theirs. I never had a mortgage over any property other than my own but a property is transferred to the executors once probate is granted so that they can sell it. A deceased person cannot sell property.

Edited by sarahb5 at 7:04 am, Fri 4 Jun

sarahb5 - 2021-06-04 07:02:00

sarahb5 wrote:

Me too because gift over to children if their parents die before receiving their distribution is a pretty standard term in a Will - I have it in mine and my parents both had it in theirs. I never had a mortgage over any property other than my own but a property is transferred to the executors once probate is granted so that they can sell it. A deceased person cannot sell property.

We will likely never know. I am also intrigued by this statement "How can someone be forced to give back the money they have taken, if they don't have a mortgage?"

I suspect the OP has not even got engaged a solicitor for the same reason he doesn't want his nieces and nephews to inherit their parents' estate.

johnston - 2021-06-04 07:15:00

trade4us2 wrote:

It's more complicated than you can imagine.
How can someone be forced to give back the money they have taken, if they don't have a mortgage?

Are you saying someone took money from the estate? If that person is a beneficiary and if established the money taken can be deducted from their entitlement. If it has nothing to do with the esttae then there are other ways, for example a charging order.

johnston - 2021-06-04 07:19:00

sarahb5 wrote:

Why would they need to have a registered mortgage if they were the beneficiary of an estate?

A good question. Two beneficiaries took more than their share of the estate (obviously before the death of their mother). They should not have done that. Why should their children get money they are not entitled to? They should not get the excess over their share. One beneficiary was wrongly advised by the estate's lawyer to have a mortgage. If that had not been done, we could all walk away from the whole mess.

Edited by trade4us2 at 9:54 am, Fri 4 Jun

trade4us2 - 2021-06-04 09:53:00

trade4us2 wrote:

A good question. Two beneficiaries took more than their share of the estate (obviously before the death of their mother). They should not have done that. Why should their children get money they are not entitled to? They should not get the excess over their share. One beneficiary was wrongly advised by the estate's lawyer to have a mortgage. If that had not been done, we could all walk away from the whole mess.

The amount “taken” will be deducted from the final distribution to the children of the deceased beneficiaries pro rata so I’m not sure why you think they will be getting more than their entitlement. But I’m still not clear how the beneficiaries took money from the estate before their mother died - the “estate” doesn’t exist until after she has died. She would have to have loaned them money secured against their future inheritance. You need an experienced estate lawyer to explain this all to you properly and to resolve it but children of deceased beneficiaries are still beneficiaries if that is how the Will is worded

sarahb5 - 2021-06-04 10:02:00

sarahb5 wrote:

The amount “taken” will be deducted from the final distribution to the children of the deceased beneficiaries pro rata so I’m not sure why you think they will be getting more than their entitlement. But I’m still not clear how the beneficiaries took money from the estate before their mother died - the “estate” doesn’t exist until after she has died. She would have to have loaned them money secured against their future inheritance. You need an experienced estate lawyer to explain this all to you properly and to resolve it but children of deceased beneficiaries are still beneficiaries if that is how the Will is worded

One beneficiary has recently died. so there's a new lawyer involved. It remains to be seen whether he will hand over the excess money to the executor of the original estate.

"She would have to have loaned them money secured against their future inheritance." She just gave them money when they asked for it. She didn't bother writing anything down. I have been investigating this for 23 years.

There are at least five lawyers and eight client managers involved. They have not been able to contact the beneficiary for many years as he has been hiding from them.
I told you it was complicated. What "experienced estate lawyer"? Are there any?

trade4us2 - 2021-06-04 11:03:00

Why can't the mother gift money to a child when she is alive and capable?OK 25 years ago there may have been gift duty but that aside,can a parent favour a child while they are alive and mentally stable and not under duress?

zak21 - 2021-06-04 11:37:00

zak21 wrote:

Why can't the mother gift money to a child when she is alive and capable?OK 25 years ago there may have been gift duty but that aside,can a parent favour a child while they are alive and mentally stable and not under duress?

Yes through a gift, although that may be challenged in terms of the Will which could mean some offset but it is far from guaranteed. Each case will determined on its facts.

Edited by johnston at 11:53 am, Fri 4 Jun

johnston - 2021-06-04 11:44:00

sarahb5 wrote:

The amount “taken” will be deducted from the final distribution to the children of the deceased beneficiaries pro rata so I’m not sure why you think they will be getting more than their entitlement. But I’m still not clear how the beneficiaries took money from the estate before their mother died - the “estate” doesn’t exist until after she has died. She would have to have loaned them money secured against their future inheritance. You need an experienced estate lawyer to explain this all to you properly and to resolve it but children of deceased beneficiaries are still beneficiaries if that is how the Will is worded

Correct, and ultimately the Hight Court may need to decide the matter which is probably a good idea. If it is decided beneficiary Y is entitled to X amount of $ then beneficiary Y's children will inherit that amount. Nothing unusual about this in the slightest.

johnston - 2021-06-04 11:49:00