Discharge of Vendors’ Mortgages on Completion of Sales
The Conveyancing Committee recommends that where Vendors’ Solicitors desire their clients to avoid the expense of bridging loan finance to provide funds to discharge any Mortgage affecting their title, they should insert a Special Condition in Contracts for Sale requiring that payment of the balance of the purchase money be provided by the Purchasers in the form of two Bank Drafts - one to effect redemption of the Mortgages affecting Vendors’ title and the other covering the balance of the purchase price.
It is not acceptable for the Vendors’ solicitor to simply undertake to discharge the Mortgages from the proceeds of sale.
In this regard attention is again drawn to previous recommendations at pages 11.4 and 11.131. of the Conveyancing Handbook.