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Mortgage discharge

A deregistered company has a mortgage over your property

A company that holds a mortgage over property may be deregistered without the mortgage being released. To be able to deal with that property including sell it, a property owner may need the mortgage released.

When will ASIC consider an application to discharge/release a mortgage?

ASIC may - but is not obliged to - complete an outstanding obligation on behalf of a deregistered company and discharge/release a mortgage in the deregistered company's name.

Generally ASIC will consider an application to execute a discharge/release of mortgage where:

  1. the money owing under the mortgage (principle and interest) was repaid before deregistration of the mortgagee and
  2. the alternative remedies are not available to you.

If you did not fully repay money owing under the mortgage before the mortgagee company was deregistered, please contact ASIC's Property Law Team via email to determine what options may be available to you. Please ensure you identify the deregistered company by name and ACN and provide a recent title search showing the mortgage registered in the deregistered company's name.

Alternative remedies you must try before applying to ASIC for a discharge/release

ASIC generally exercises its discretionary powers under the Act to deal with vested property as a last resort. You need to ensure the following alternative remedies are not available to you before you apply to ASIC for a discharge/release. The cost of alternative remedies by itself is not a sufficient basis for ASIC to exercise its powers to deal with property.

How to apply to ASIC for a discharge/release of mortgage

If the alternative remedies outlined above are not available to you then you may wish to apply to ASIC's Property Law Team for a discharge/release of the mortgage.

You will also need to complete the following indemnity:

More information

This is only a general guide as to ASIC's approach to the property and rights that pass to ASIC and the Commonwealth on deregistration of a company. This document does not represent legal advice and should not be interpreted as such. Each application or enquiry will be considered on its facts and decided on its individual merits, based on all the information available to ASIC at the time. We encourage you to seek your own professional advice to find out how the law applying to deregistered companies affects your individual circumstances.