Deed of Release — Mortgage Discharge (Ghana)

A Deed of Release — Mortgage Discharge in Ghana waives defined claims, preventing the releasing party from pursuing them later. It records the rental price, deposit, term, maintenance duties, and notice periods between landlord and tenant.

The Mortgages Act 1972 (Act 392) governs the creation, registration, and discharge of mortgages over land in Ghana. Section 20 of Act 392 requires that a discharge of mortgage be effected by a formal deed of release and that the deed be presented to the Lands Commission for registration under the Land Registration Act 2020 (Act 1036). Until the Deed of Release is registered with the Lands Commission, the mortgage encumbrance continues to appear on the title register and may adversely affect the mortgagor's ability to sell, mortgage, or otherwise deal with the property. Discharge of a mortgage also extinguishes any power of sale or power of foreclosure previously vested in the mortgagee under Act 392.

Banks licensed by the Bank of Ghana are the most common mortgagees in Ghana and typically follow a standardised discharge process: upon confirmation of full repayment by the mortgagor, the bank's authorised signatories execute the Deed of Release, the document is stamped under the Stamp Duty Act 2005 (Act 689), and the mortgagor lodges the deed for registration with the Lands Commission. The Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) requires licensed banks to maintain accurate records of their security portfolio and to release security promptly upon full satisfaction of the secured debt.

The Land Registration Act 2020 (Act 1036) superseded the Land Title Registration Act 1986 (PNDCL 152) and established a unified land registration framework for Ghana. Under Act 1036, the Lands Commission maintains a single register of land interests, and the discharge of a registered mortgage must be noted in that register by filing the Deed of Release together with the original mortgage instrument and the prescribed Lands Commission fees. The Lands Commission issues a receipted confirmation of the discharge, which the mortgagor should retain as proof that the encumbrance has been removed from the register.

The Ghana Revenue Authority (GRA) charges stamp duty on Deeds of Release under the Stamp Duty Act 2005 (Act 689) at the prescribed rate. Where the mortgage was associated with a Loan Agreement on which the mortgagor claimed interest deductions for tax purposes under the Income Tax Act 2015 (Act 896), the discharge of the mortgage should also be noted in the mortgagor's tax records. The mortgage discharge is also relevant to the mortgagor's balance sheet, as the encumbered property may now be presented as unencumbered in financial statements prepared in accordance with the Ghana Financial Reporting Standards adopted by the Institute of Chartered Accountants, Ghana (ICAG).

The importance of formal mortgage discharge in Ghana cannot be overstated. Many Ghanaian homeowners and property investors have discovered that failure to register a Deed of Release with the Lands Commission — even where the mortgage debt has been fully repaid — can cause serious problems when they attempt to sell, re-mortgage, or transfer the property years later. The Lands Commission register continues to show the mortgage encumbrance until the Deed of Release is formally registered, and a prospective purchaser or new mortgagee will not proceed to completion until the register shows clear title. The Lands Commission charges prescribed fees for recording a mortgage discharge, and these fees are subject to periodic revision by the Ghana Revenue Authority (GRA) and the Lands Commission itself.

In practice, many Bank of Ghana-licensed banks in Ghana issue a standard form Deed of Release when a mortgage is fully repaid, and some banks charge an administration fee for processing the discharge document. Borrowers should confirm they receive the original sealed Deed of Release and the original mortgage instrument from the bank, both of which are required for lodgment at the Lands Commission. Where the original mortgage instrument has been lost, the Lands Commission may require a sworn statutory declaration by the mortgagee before accepting the discharge for registration.

The Ghana Home Loans Company and other specialist mortgage providers in Ghana also use Deeds of Release when administering mortgage portfolios. Under the National Housing Policy of Ghana and the Mortgage Finance Law 2019, the government has sought to expand access to mortgage finance, and the volume of mortgage registrations and discharges at the Lands Commission has grown significantly. The Lands Commission's electronic conveyancing system — introduced progressively from 2020 under the Land Registration Act 2020 (Act 1036) — aims to reduce the time and cost of processing mortgage discharges across all 16 regions of Ghana.

A Deed of Release (Mortgage Discharge) in Ghana is needed in the following circumstances.

A Deed of Release is required when a borrower (mortgagor) has completed full repayment of a mortgage loan secured over land or property in Ghana, and the mortgagee bank or lending institution must formally discharge the security under the Mortgages Act 1972 (Act 392), section 20.

A Deed of Release is needed when a mortgagor wishes to sell mortgaged land or property in Ghana and the purchaser or their financier requires written confirmation that all mortgage encumbrances registered with the Lands Commission under the Land Registration Act 2020 (Act 1036) have been fully discharged before completion of the sale.

A Deed of Release is required when a mortgagor wishes to refinance an existing mortgage with a new lender, and the new lender requires the prior mortgage to be formally discharged and deregistered at the Lands Commission before the new security can be registered as a first-ranking charge.

A Deed of Release is needed when a commercial bank licensed by the Bank of Ghana has settled a corporate mortgage as part of a debt restructuring or debt settlement with a company incorporated under the Companies Act 2019 (Act 992), and the company's auditors and the Institute of Chartered Accountants, Ghana (ICAG) require formal evidence that the encumbrance has been released for financial reporting purposes.

A Deed of Release is required in the administration of a deceased's estate under the Administration of Estates Act 1961 (Act 63), where the estate includes mortgaged property and the executors need to release the mortgage before distributing the unencumbered property to beneficiaries.

A Deed of Release is needed when a guarantor who provided a mortgage over their personal property as security for a third party's loan has had their security released following full repayment of the guaranteed debt, and needs a formal instrument to remove the encumbrance from the title register at the Lands Commission.

A Deed of Release is required in any Ghana property transaction where the vendor's solicitor is required to provide evidence of clear title — a requirement standard in conveyancing practice before the High Court of Justice, Ghana and the Lands Commission — and the title register shows an outstanding mortgage that must be discharged before title passes to the purchaser.

A Deed of Release is required when a bank licensed by the Bank of Ghana has sold a non-performing mortgage loan to a third-party debt purchaser under a loan portfolio sale agreement, and the third-party purchaser has since recovered the full amount from the mortgagor. The third-party purchaser must execute the Deed of Release as the new mortgagee before the mortgagor can obtain clear title.

A Deed of Release is needed when a partial discharge of a mortgage is agreed between the mortgagee bank and the mortgagor — for example, where the mortgagor has sold part of the mortgaged land and applied the proceeds to reduce the outstanding loan balance — and the bank consents to release the sold portion from the mortgage while the charge continues over the remaining land registered with the Lands Commission.

A Deed of Release is required when a company incorporated under the Companies Act 2019 (Act 992) has charged its property by way of a floating or fixed charge registered at the Office of the Registrar of Companies (ORC) and with the Lands Commission, and the company has repaid the secured facility in full. Both a release from the ORC charge registration and a Deed of Release registered with the Lands Commission are required to fully discharge the encumbrance.

A valid Deed of Release (Mortgage Discharge) in Ghana under the Mortgages Act 1972 (Act 392) and the Land Registration Act 2020 (Act 1036) must contain the following essential elements.

Parties: Full legal name, address, and Bank of Ghana licence number of the mortgagee (the bank or lender releasing the mortgage), and the full legal name and address of the mortgagor (the borrower whose property is being released). Where the mortgagee is a licensed bank, confirm its authorised signatories as specified in the bank's board resolution.

Date of Execution: The date the Deed of Release is signed in DD/MM/YYYY format, which is the effective date from which the mortgage encumbrance is discharged between the parties — registration at the Lands Commission perfects the release against third parties.

Description of Mortgaged Property: A precise description of the land or property being released — including the plot number, block, registration section, the relevant land registration district, the Lands Commission title number, and the property address in Ghana — corresponding exactly to the description in the original mortgage instrument.

Reference to Original Mortgage: The date and registration number of the original mortgage deed registered with the Lands Commission, the principal amount secured by the mortgage, and the Loan Agreement to which the mortgage relates, to identify the security being released beyond any doubt.

Confirmation of Full Repayment: An express statement by the mortgagee that the mortgagor has repaid the full principal, interest, and all charges and expenses secured by the mortgage, and that the mortgagee accordingly releases, discharges, and surrenders all its rights, title, and interest under the mortgage.

Release Language: Operative release words — for example, "The Mortgagee hereby releases and discharges the Property from the mortgage created by the Mortgage Deed dated [date], and from all claims and demands arising thereunder, with effect from the date of this Deed."

Duty to Register: A commitment by the mortgagee to cooperate with the mortgagor to register the Deed of Release at the Lands Commission under the Land Registration Act 2020 (Act 1036), and to execute such further documents as may be required for that purpose.

Stamp Duty: An acknowledgment that the Deed of Release is subject to stamp duty under the Stamp Duty Act 2005 (Act 689) and that stamp duty will be paid before the deed is presented to the Lands Commission for registration.

Governing Law: Ghana law, with disputes referred to the High Court of Justice, Ghana.

Forms-legal.com provides this Deed of Release template as a starting point for Ghana mortgage discharge documentation. Mortgagors and mortgagees should consult a legal practitioner enrolled with the Ghana Bar Association to confirm the Lands Commission registration procedure and current fees before proceeding.

Bank's Authorised Signatories: Where the mortgagee is a bank or financial institution licensed by the Bank of Ghana, the Deed of Release must be executed by the bank's authorised signatories in accordance with the bank's signing authority matrix and board resolution. The Lands Commission may require evidence of the signatories' authority — typically a certified copy of the bank's board resolution and specimen signatures — before accepting the Deed of Release for registration.

Receipt of Full Payment Confirmation: The Deed of Release should include an express confirmation by the mortgagee that the full amount of principal, interest, legal costs, and all other moneys secured by the mortgage have been received in cleared funds, and that no further amounts are owing under the mortgage or the underlying Loan Agreement. This confirmation prevents the mortgagee from subsequently claiming that the Deed of Release was executed in error or under a mistake about the amount outstanding.

Forms-legal.com provides this Deed of Release template as a starting point for Ghana-compliant mortgage discharge documentation. Mortgagors should consult a legal practitioner enrolled with the Ghana Bar Association and engage a land consultant familiar with the Lands Commission procedures in Accra, Kumasi, Takoradi, or the relevant regional capital before lodging the deed for registration.

Lands Commission Electronic Submission: Under the Land Registration Act 2020 (Act 1036), the Lands Commission of Ghana has progressively introduced an electronic document submission system for registration transactions in Accra and other major cities. Parties should confirm with the Lands Commission whether the Deed of Release must be submitted physically at the relevant Lands Commission regional office or whether electronic submission is permitted in their specific district, and should retain a certified copy of the stamped Deed of Release and the Lands Commission registration confirmation for their permanent property records.