Even if you pay off your mortgage, the lien on the registry will not automatically disappear. You must receive the necessary documents for mortgage cancellation from your financial institution and apply for mortgage cancellation registration at the Legal Affairs Bureau.
Even if you have a mortgage, you may not face any problems in your daily life right away. However, the process may stop at the time of sale, refinancing, additional financing, or inheritance. The Legal Affairs Bureau also advises that once you receive the required documents, keep them in a safe place so that they do not get lost or damaged, and apply for registration as soon as possible.
In this article, we will explain the meaning of mortgage cancellation registration, required documents, registration license tax, application procedure, and cases in which you should consult a judicial scrivener from a practical perspective.
What is mortgage cancellation registration?
A mortgage is a right placed on real property to secure a loan such as a mortgage. If the borrower is unable to repay the loan, the financial institution has priority in recovering the loan from the mortgaged property.
When the mortgage is paid off, the mortgage as collateral disappears. However, the record will remain on the registry unless a separate application is made. The procedure for erasing this registration record is mortgage cancellation registration.
| Status | Mortgage treatment |
|---|---|
| Repaying mortgage | Mortgage has been set |
| Immediately after paying off the mortgage | The debt disappears but the registration record remains |
| After registration of mortgage cancellation | Mortgage record disappears from the registry |
Risk of leaving mortgage cancellation unattended
There is no legal deadline for registration of mortgage cancellation. However, it is safer to proceed immediately after paying off the loan.
Procedures are delayed when selling
When selling real estate, the buyer or the buyer's financial institution usually does not allow the property to be handed over with a mortgage remaining. If you try to delete the property just before the sale and find that there are missing documents, there is a risk that the settlement date will be postponed.
Documents are lost and need to be reissued
The registration cause information, power of attorney, registration identification information, or registration certificate received from a financial institution are important documents. If you lose your card, you will need to have it reissued or replaced, which will take time.
Increase in confirmations due to mergers and name changes of financial institutions
After time passes, financial institutions may merge, change trade names, or relocate their head offices. This will make the procedure more complicated as you will need to read the required documents and perform additional checks.
Family is in trouble when inheriting
If you try to cancel the mortgage after the owner dies, inheritance registration and confirmation of heirs will also be involved. Completing the process while the person paying the full amount is still healthy will reduce the burden on the family.
Required documents
The Legal Affairs Bureau's guidance indicates the documents that are generally sent by financial institutions as the attached information required for registration of mortgage cancellation.
| Documents | Contents | Where to get |
|---|---|---|
| Information proving the cause of registration | Documents certifying extinguishment of mortgage, such as cancellation deed and payment deed | Financial institution |
| Power of attorney | A document in which a financial institution entrusts the owner with the registration application | Financial institution |
| Registration identification information or registration certificate | Registration information at the time of mortgage creation | Financial institution |
| Corporate number, etc. | Used to confirm financial institution information | Financial institution or legal affairs bureau information |
| Registration application form | Application form to submit to the Legal Affairs Bureau | Create by yourself |
The document name may differ depending on the financial institution. Even if you receive a set of mortgage cancellation documents, please check the contents and contact your financial institution as soon as possible if there is anything missing.
Fees and registration license tax
If you apply for mortgage cancellation registration yourself, the main cost is the registration and license tax. According to the Legal Affairs Bureau materials, the registration and license tax for mortgage cancellation registration is 1,000 yen per piece of real estate. If you buy one piece of land and one building, the total cost is 2,000 yen.
| Example | Number of real estate properties | Registration license tax |
|---|---|---|
| 1 apartment (with site rights) | Confirm by registered details | Confirm by Legal Affairs Bureau/registered information |
| Detached house (1 piece of land + 1 building) | 2 pieces | 2,000 yen |
| 2 plots of land + 1 building | 3 pieces | 3,000 yen |
If you request a judicial scrivener, you will be required to pay the judicial scrivener's fee and actual expenses in addition to the registration and license tax. The cost will vary depending on the office and number of properties, but it is worth considering requesting this service if you have difficulty going to the Legal Affairs Bureau on weekdays, are concerned about documents, or need to register a change of address.
Steps to apply by yourself
1. Receive documents from financial institution
After the payment is completed, the financial institution will send you mortgage cancellation documents. When it arrives, do not keep the entire envelope, but check to see if you have all the necessary documents.
2. Check real estate display with registration certificate
On the application form, write the location, lot number, house number, etc. as per the registry. The address on the property tax notice and the real estate on the register may be different, so check with the registration certificate.
3. Create registration application form
Describe the purpose of registration, cause, right holder, obligee, attached information, registration license tax, and real estate display. The cause depends on the content of the document from the financial institution, such as "payment on date" or "cancellation on date."
4. Submit to the competent legal affairs bureau
Apply to the Legal Affairs Bureau that has jurisdiction over the location of the real estate. There are several ways to apply: at the counter, by mail, and online. Online application is convenient, but if your financial institution documents are prepared on paper, you may not be able to complete the application online alone.
5. Check the registration details after completion
After registration is completed, we will obtain a certificate of registration as necessary and confirm whether the mortgage has been canceled. If you are planning to sell, it is best to complete this confirmation.
Cases in which it is better to ask a judicial scrivener
Please consider requesting a judicial scrivener in the following cases:
- The owner's address and name are different from the registry.
- I lost the documents I received from my financial institution.
- A financial institution has merged or changed its trade name
- Inheritance has occurred
- There are multiple real estate listings.
- Sale settlement date is near
- I can't go to the Legal Affairs Bureau on weekdays.
Although mortgage cancellation is a relatively simple registration process, if the circumstances overlap, corrections and additional registrations may be required. Early confirmation is especially important before a sale, as delays in procedures will affect the entire transaction.
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Frequently asked questions
Q. Is there a deadline for registering mortgage cancellation?
There is no clear deadline. However, it is recommended that you apply as soon as possible after paying off to avoid losing documents, changing financial institutions, or delaying the sale.
Q. Can I register the mortgage cancellation myself?
can. The Legal Affairs Bureau publishes guidance for single-family homes and condominiums. However, if any documents are missing or your address has changed, you will need to make corrections, so if you have any concerns, please consult a judicial scrivener.
Q. How much is the registration and license tax?
Mortgage cancellation registration is 1,000 yen per piece of real estate. One piece of land and one building costs 2,000 yen. For condominiums, please check the registration details.
Q. Can I just apply online?
It depends on how the document is created. If your financial institution documents are prepared on paper, you may not be able to complete your application online. Please check the information provided by the Legal Affairs Bureau or the relevant Legal Affairs Bureau.
Reference/Citation
- Legal Affairs Bureau "For those who have paid off their mortgage, etc. (Guidance on cancellation of mortgage registration procedures)"
- Legal Affairs Bureau "Those who wish to apply online for registration of mortgage cancellation"
- Legal Affairs Bureau "Documents required for registration of mortgage cancellation and registration license tax"
