New Bill would oblige mortgagors to issue discharges within 30 days
Bill 2, the Business Practices and Consumer Protection Act, recently introduced in the provincial legislature, contains new consumer protections that have been much anticipated by the Law Society's Conveyancing Practices Task Force.
If it passes into law, Bill 2 would require a mortgage lender to provide a borrower with a registrable mortgage discharge within 30 days of the borrower repaying the principal and interest owing under the loan. In the case of a revolving mortgage loan, the discharge would be required within 30 days of the borrower requesting a registrable discharge.
The Bill also provides for a prescribed maximum on the fee that a lender can charge for a discharge.
The Conveyancing Practices Task Force, in considering reforms in conveyancing practices and in financial protections for the public in real estate transactions, urged financial institutions in 2002 to provide prompt and reliable discharge information and to expeditiously deliver discharges of repaid mortgages.
Bill 2 is available at www.legis.gov.bc.ca/37th5th/1st_read/gov02-1-toc.htm.