Mortgage registered for more than was advanced?
Don’t despair. There is assistance. The Land Titles Act was created to give borrowers a way out of mortgages registered for more than was advanced when you have asked the Bank/Lender to advance the further funds registered and they have refused.
Blended mortgages are common now amongst the National Banks and other Trust Companies and Lenders. They are providing you blanket security for more than you originally require in the event that, at some time in the future, you qualify and require additional funds, that they can advance those funds to you under this secured registration and not have to prepare additional secured financing documents.
The difficulty becomes when you ask for the money and you are refused. Now you may have $750,000.00 registered against title to the property but only $500,000.00 of that advanced.
Have no fear, Section 104 of the Land Titles Act is here!.
This Section of the Act and in particular subsection 3, provides for a positive duty upon your Lender to discharge the mortgage for any un-advanced portion when you ask for the funds and they will not provide it to you. Put your request in writing and if they deny you further funds (get in writing), then put your request for the partial discharge of the mortgage down to the advanced portion. The Lender must discharge under this legislation those amounts not advanced.
The Section is quotes below. As always, please don’t hesitate to contact Hendrix Law with your inquiries regarding the Land Titles Act and all real estate and enforcement provisions.