Deed of Release of Mortgage (Nigeria)

A Deed of Release of Mortgage in Nigeria discharges one party from specified claims or liabilities in exchange for the agreed consideration. It records the rental price, deposit, term, maintenance duties, and notice periods between landlord and tenant.

The legal obligation on the mortgagee to discharge upon repayment is a fundamental principle of mortgage law in Nigeria, rooted in the mortgagor's equity of redemption — the equitable right to have property returned free of encumbrance upon repayment. This right was confirmed by the Court of Appeal in Ogundele v Agiri [2009] 18 NWLR (Pt 1172) 95, where the court affirmed that upon full repayment, the mortgagee cannot withhold the release. Section 19(2) of the Conveyancing Act 1881 provides that upon redemption, the mortgagee shall reconvey the mortgaged property to the mortgagor or as the mortgagor directs.

The Deed of Release must be presented to the relevant State Land Registry for registration to cancel the mortgage entry and restore the mortgagor's clean title. In Lagos State, the Lagos State Land Registration Law 2015 governs registration of discharges. In the FCT, the Abuja Geographic Information Systems (AGIS) registry handles the cancellation. Additionally, where the mortgage was registered as a charge at the Corporate Affairs Commission (CAC) under Sections 192–194 of CAMA 2020, the mortgagor must file a Memorandum of Satisfaction of Charge (Form CAC/CH/04) with the CAC within 42 days of the satisfaction to cancel the charge registration. Stamp duty on the Deed of Release is assessed at the applicable fixed rate under the Stamp Duties Act (Cap S8, LFN 2004).

The legal framework governing the Deed of Release of Mortgage (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Deed of Release of Mortgage (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Land Use Act 1978 (Cap. L5) sets the foundational requirements.

A Deed of Release of Mortgage is needed in Nigeria whenever a borrower has fully repaid a mortgage loan and needs formal documentation of the discharge to clear the encumbrance from their title.

A Deed of Release is required when an individual has paid off a residential mortgage in full — whether a bank loan, NHF mortgage from the Federal Mortgage Bank of Nigeria, or a private mortgage — and needs to clear the mortgage entry from the State Land Registry to restore unencumbered title.

A Deed of Release is needed when a company has repaid a bank loan secured by a first legal charge over company property and needs to discharge the charge both at the State Land Registry and at the Corporate Affairs Commission (CAC) under CAMA 2020.

A Deed of Release is required before a property can be sold or re-mortgaged, as a purchaser or new mortgagee will require clean title free from the existing mortgage encumbrance. A Land Registry search will reveal any undischarged mortgage, which must be cleared before completion.

A Deed of Release is needed when a borrower refinances — paying off one lender with the proceeds of a new loan from another lender — to formally discharge the first mortgage and create clean priority for the new mortgage.

A Deed of Release is required when a guarantor or co-mortgagor has discharged the secured debt on behalf of the primary borrower and needs to obtain a formal release from the mortgagee to confirm the security over their property is discharged.

Parties in Nigeria should prepare a Deed of Release of Mortgage (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A Deed of Release of Mortgage for Nigeria must contain the following essential elements.

Parties: Full legal names and addresses of the mortgagee (who executes the release) and mortgagor (who receives the benefit of the release). For institutional lenders, include the CBN licence reference.

Recital of the Original Mortgage: Reference to the original Deed of Mortgage or Deed of Legal Mortgage being discharged — including the date of execution, the parties' names, the secured amount, and the title document reference.

Acknowledgement of Repayment: Confirmation that the mortgagor has paid all principal, interest, costs, and other amounts secured by the original mortgage, with receipt of the final payment amount acknowledged by the mortgagee.

Release and Discharge: The operative clause releasing and discharging the mortgage — the mortgagee 'hereby releases and discharges the mortgage and all claims thereunder' over the specified property.

Reconveyance: Where the mortgage involved transfer of the legal estate to the mortgagee, the reconveyance clause transferring the legal estate back to the mortgagor.

Property Description: Complete description of the released property including Certificate of Occupancy number, plot details, and state.

Return of Title Documents: Confirmation that the mortgagee will return all title documents deposited as security.

CAC Charge Satisfaction: For corporate mortgagors, the mortgagee's cooperation in filing a Memorandum of Satisfaction of Charge (Form CAC/CH/04) at the Corporate Affairs Commission (CAC) within 42 days of satisfaction under Sections 192–194 of the Companies and Allied Matters Act 2020 (CAMA 2020), to remove the charge from the CAC public register.

Stamp Duty: The Deed of Release must be stamped under the Stamp Duties Act (Cap S8 LFN 2004) before presentation at the State Land Registry. The Federal Inland Revenue Service (FIRS) assesses stamp duty for releases involving corporate parties. State Internal Revenue Services assess duty for individual mortgagors. An unstamped deed is inadmissible in evidence under Section 22 of the Stamp Duties Act.

Land Registry Registration: The stamped Deed of Release must be presented at the Lagos State Land Registry (under the Lagos State Land Registration Law 2015), the Abuja Geographic Information Systems (AGIS) (under the FCT Land Administration Act 2015), or the relevant State Lands Registry for registration and cancellation of the mortgage entry. Without Land Registry registration, the discharge is not effective against subsequent purchasers or mortgagees who conduct a title search.

Governor's Consent: Where the original mortgage required governor's consent under Section 22 of the Land Use Act 1978, the release may also require consent or notification to the relevant State Governor's Office or the FCT Minister, depending on the state practice. In Lagos State, the consent of the Lagos State Governor (administered through the Lagos State Lands Bureau) is typically required for dealings in land including discharges of legal charges.

Execution: Mortgagee's signature as a deed — by two directors or one director and the company secretary under Section 97 of CAMA 2020 for corporate lenders — and attested by witnesses.

Additional compliance elements for a Deed of Release of Mortgage (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.