Deed of Release

Deed of Release
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A deed of release “is a concise, legally binding document that parties use to resolve a dispute or end some form of agreement between them. In essence, a ‘release’ is a discharge of obligations” [1].

This is a document, which describes the agreement between stakeholders to settle the dispute. It shall be considered as the record of release the property after a mortgage deed is expired. The main assumption of the document is a common agreement: “one party undertakes to pay a certain amount or to do a specific act and the other party agrees that it will be prevented from making any further claims related to that matter ”. A deed of release is a legal papers that get rid of former claim on an asset. A deed of release could be contained when creditor transfers the claim of real estate to the householder from satisfaction of the loan.. A deed of release formally brings out the parties from former commitments [2].

As the example, the most often individual homes are being purchased with the use of a mortgage obtained from financial entity. The funds are being provided by the financial institution and simultaneously the bank acquires a right against the property until the loan is paid back. A deed of release is possible to be created, when the borrower fulfills all terms of the mortgage and finalize all payments of the loan. At that moment, a deed of release can be conducted, and the rights to the property are to be legally transferred from the lender to the borrower [3].

From the bureaucratic perspective, “the deed of release is typically created by the lending institution’s legal counsel when the loan has been satisfied. It reports that the loan has been paid in full under the terms required. It also states that the lien has been removed and full title has been transferred to the homeowner.“

To make a deed of release valid, a few conditions are to be met [4]:

  • Someone, who is not part of the deed, need to witness the signature,
  • Enough copies are to be assured for each of the parties involved to sign,
  • The deed is to be executed acc. to rules of the company,
  • Sequence of signing all copies needs to be established and accepted by all stakeholders.


  1. Thomson J. Warnick L., Martin K., 2014, s.86
  2. Business Dictionary.
  3. Gordley J. 2006, s.145
  4. Business Dictionary.


Author: Dominika Tatoń