Different between discharge of charge and deed of receipt and reassignment

Posted on April 19, 2020 by Nadzirah Binti Abdul Razak @ Lapochik

These two processes will involve the Bank as the financier that provides the housing loan to the Purchaser/Borrower. However there are some differences as regards to the documents and the process itself due to the status of the Title involved in this matter. In order to recognize the differences we must check the status of the Title when buying the property. If it involved Master Title, then the Purchaser/Borrower need to sign the Deed of Assignment document and Power of Attorney upon signing the loan documents with the Bank. However, if the property already has its Individual or Strata Title, then the Purchaser/Borrower will do the Perfection of Charge. In a simple understanding, a security given by the Purchaser/Borrower to the Bank for the loan given is either by Charge their own property or by way of Deed of Assignment and Power of Attorney. As for the Discharge of Charge, once everything is settled then the Purchaser/Borrower will receive the Original title free from encumbrances and if previously they signed the Deed of Assignment and Power of Attorney, they will only receive the Original documents of Deed of Receipt and Reassignment being returned to them. Here is a clear comparison for both Discharge of Charge and Deed of Receipt and Reassignment:-

	DISCHARGE OF CHARGE	DEED OF RECEIPT AND REASSIGNMENT
Outstanding loan	Need clear	Need clear
Title status	Individual/Strata Title	Master Title
Documents involved	16N	Deed of Receipt and Reassignment
Registration at land office	Yes	No
Revocation power of attorney at court	No	Yes
End result	Receive Original Title free from encumbrances	Receive original documents
Further process	No	Yes : Perfection of Transfer

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