A Canadian Deed of Reconveyance is a legal instrument used to release a property from a mortgage or deed of trust after the underlying loan has been fully repaid. While the terminology "deed of reconveyance" is more commonly used in certain US jurisdictions, the equivalent Canadian document is typically called a Discharge of Mortgage or Discharge of Charge. The effect is the same: the lender (mortgagee or trustee) formally releases its security interest in the property, and the borrower (mortgagor or trustor) regains unencumbered title.

In Canada, the mortgage discharge process is governed by provincial legislation. In Ontario, the Mortgages Act (R.S.O. 1990, c. M.40) and the Land Titles Act (R.S.O. 1990, c. L.5) govern the discharge process. The Land Registration Reform Act (R.S.O. 1990, c. L.4) provides for electronic registration of discharges through the Teraview system. In British Columbia, the Property Law Act (R.S.B.C. 1996, c. 377) and the Land Title Act (R.S.B.C. 1996, c. 250) govern mortgage discharges, and the filing is made at the Land Title Office. In Alberta, the Land Titles Act (R.S.A. 2000, c. L-4) requires the mortgagee to provide a registrable discharge.

The Deed of Reconveyance or mortgage discharge is a critical document because until it is registered at the applicable land registry office, the mortgage remains on title and the property cannot be sold or refinanced free of that encumbrance. Delays in obtaining or registering a discharge can create significant problems for borrowers who wish to sell their property or obtain new financing.

A Deed of Reconveyance or Discharge of Mortgage is needed whenever a borrower has fully repaid a mortgage or loan secured by real property in Canada. The lender is obligated to provide a discharge document once the loan has been satisfied in full, including all principal, interest, and any applicable fees. The borrower should request the discharge promptly after final payment to ensure the mortgage is removed from the property title.

This document is essential in several common scenarios: when a homeowner makes the final payment on their residential mortgage, when a commercial property owner pays off a business mortgage, when a property is refinanced and the old mortgage needs to be discharged before the new one is registered, or when a property is sold and the proceeds are used to pay off the existing mortgage at closing. In all these cases, the discharge must be registered at the provincial land registry office to clear the title.

In Ontario, the Mortgages Act requires the lender to provide a discharge within a reasonable time after receiving full payment and a request for discharge. A borrower who encounters difficulties obtaining a discharge may apply to the court for an order directing the discharge. In British Columbia, the Property Law Act imposes similar obligations on lenders. Failure to provide a timely discharge can result in the lender being liable for damages caused to the borrower by the delay.

A properly drafted Canadian Deed of Reconveyance or Discharge of Mortgage must include several essential elements. The document must clearly identify the trustee or lender (mortgagee) by full legal name and address, specifying whether they are an individual, corporation, partnership, or trust company. The trustor or borrower (mortgagor) must also be fully identified with their legal name and current address.

The document must reference the original mortgage or deed of trust by its registration details, including the instrument number, the land registry office where it was registered, the date of registration, and the principal amount of the loan secured. The property must be described using the legal description as it appears on the registered title, including the Property Identification Number (PIN) in Ontario, the Parcel Identifier (PID) in British Columbia, or the equivalent identifier in other provinces.

The reconveyance or discharge must contain a clear declaration that the loan has been fully paid and satisfied, that there are no outstanding amounts owing, and that the lender releases all rights, titles, and interests in the property acquired under the mortgage. The document should specify the effective date and include the lender's signature. In most provinces, the discharge must be in the prescribed form for electronic or paper registration at the land registry office.

The document should reference the governing provincial law, including the applicable Land Titles Act, Registry Act, or Property Law Act. In Ontario, discharges are typically registered electronically through the Teraview system. In British Columbia, the BC Online system is used for electronic filings at the Land Title Office. The document must comply with all provincial requirements for registration to be accepted by the land registry office.