Personal Finance

Lender never put mortgage on title

  • Last Updated:
  • Jul 28th, 2020 4:40 pm
[OP]
Newbie
Jul 27, 2020
19 posts
14 upvotes

Lender never put mortgage on title

I just sold my house in Quebec. Two years ago, RBC financed the property. A year ago, I changed the lender to another bank ("Bank A").

Upon my own discovery, it turns out that the RBC mortgage was never discharged from title and is at a $0 balance. Bank A's mortgage is not on title. It appears the notary failed to register the mortgage on title on behalf of Bank A. In essence, I was given an unsecured mortgage.

At this point, the sale has closed and the current notary is holding back the Bank A mortgage amount until given instruction from Bank A on what to do. Thus far, it appears nobody really knows what to do. In addition, it appears I'll be incurring ~$1600 in legal fees as a result.

Our new mortgage in BC is with Bank A. So Bank A is charging us the penalty then apparently refunding us most of the amount (the new mortgage is slightly less than the current one).

I've spent a considerable amount of time dealing with this, and was indeed the one who caught the problem and reported it. I feel like I should at least be reimbursed for all legal fees + the small penalty amount.

Anyone have experience with something like this? Any thoughts or things I should watch out for?
1 reply
Deal Addict
May 16, 2017
2346 posts
3067 upvotes
You should check what the legal regulations are in Quebec on notary/lawyer to properly and timely register of title changes. I only know where I live (BC) and there are specific regulations on duty to file in a correct and timely manner with the BC Land Title Registry and to discharge within specific time limits. Was RBC actually asked to "discharge" the mortgage? There are circumstances where a mortgage is paid but not discharged. Certainly a lawyer in BC would be on-the-hook for costs incurred to rectify. Was there a single notary working for you and Bank A?

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