You have just paid off your mortgage, or you are preparing to sell your property. In either case, one question arises: how do you release the property from the mortgage that is still on it? The release of mortgage is a notarial act that removes the guarantee registered in favor of the bank. Understanding how it works avoids costly blockages, especially since the adjustments resulting from the security reform that came into effect in 2022.
Old mortgages not released: the trap that blocks a real estate sale
Before even discussing the procedure, one point deserves your attention. Notaries and real estate lawyers have reported, since 2023-2024, an increase in sales files blocked due to mortgages that have never been formally released.
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The scenario is simple. A homeowner paid off a first loan ten years ago and then took out a second one. The mortgage registration of the first loan was never canceled. On the day of resale, the notary discovers this second-ranking registration or an old bridge loan still visible at the land registry office.
These blockages are more frequent when resales happen quickly or when several lines of credit (professional loan, bridge loan, secured consumer credit) overlap. To fully understand the steps for releasing a mortgage, you must first check how many registrations actually weigh on the property, not just the most recent one.
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Request a complete mortgage status report before any sale. This document, issued by the land registry office, lists all active registrations. It is better to discover it three months before signing than the day before.
Release of mortgage: notarial act and creditor’s agreement
The release is the legal term that refers to the lifting of a mortgage. Specifically, it is a genuine act drafted by a notary that acknowledges the removal of the guarantee. Without this act, the registration remains visible, even if the loan is settled.
How the amicable procedure works
The most common case is the amicable release. Here are the concrete steps:
- The borrower (or their notary) contacts the bank to obtain a certificate of full repayment of the mortgage loan.
- The bank issues a release agreement, sometimes called a “subrogative receipt,” confirming that it waives its mortgage guarantee.
- The notary drafts the release act, has it signed by the parties, and then submits it to the land registry office for cancellation of the registration.
- The effective cancellation takes a few weeks. The property is then legally free of any mortgage charge related to this loan.
Why must the bank give its agreement? Because the mortgage is a real right registered in its favor. Without the creditor’s agreement, no amicable cancellation is possible.
The judicial release, when the creditor refuses
If the bank refuses the release (for example, in the event of a dispute over the remaining balance), the borrower can take the matter to the judicial court. The judge will then order the cancellation if repayment is proven. This route is longer and more costly, but it remains a remedy provided by French law.
2022 security reform and duration of mortgage registration
The ordinance of September 15, 2021, which came into effect in 2022, modified the prescription rules for mortgages. The duration of mortgage registration is now aligned with the prescription of the secured debt.
What does this change for you? On a standard mortgage loan of twenty or twenty-five years, the mortgage registration no longer survives indefinitely beyond the term of the loan. This harmonization simplifies the timeline of procedures, but it does not exempt you from requesting a formal release if you sell before the automatic extinction.
Consumer guides rarely mention this reform. However, it has a direct impact on the release strategy: in some cases, waiting for the natural extinction of the registration may prove less costly than paying for an early release. It all depends on the timing of your real estate project.
Release fees: what the notary actually charges
The release of mortgage is not free. The release fees include several distinct items:
- The notary’s fees, calculated according to a scale proportional to the initial amount of the loan.
- The property security contribution, paid to the land registry office to register the cancellation.
- Various administrative fees (copies of acts, tax stamps).
The total cost represents a fraction of the amount of the secured loan. In the event of a sale of the property, these fees are generally deducted from the sale price by the notary in charge of the transaction.
One often overlooked point: if you wait for the natural extinction of the registration (one year after the end of the loan under the old regulations, or according to the new prescription rules since 2022), no release is necessary. The registration disappears by itself, without cost. This option is only viable if no sale or refinancing is planned in the short term.
Real estate sale and refinancing: two situations where the release is mandatory
During a sale, the buyer requires a title of ownership free of any charge. The notary blocks the transaction as long as the mortgage is not released. The seller bears the release fees, unless otherwise agreed between the parties.
In the case of refinancing, the new bank refuses to finance a property already encumbered by a mortgage in favor of another institution. The release of the old guarantee is a prerequisite, followed by the registration of a new mortgage in favor of the new creditor. Two notarial acts, two series of fees.
French real estate law imposes this rigor to protect the parties. Each registration and each cancellation goes through a genuine act published, which guarantees the transparency of the land register. Checking the mortgage status of a property before any purchase remains the safest reflex to avoid surprises after signing.