Document background
The Discharge Of Mortgage Form is a crucial document in Indonesian property transactions that formally terminates a mortgage (Hak Tanggungan) over a property. It is used when a borrower has fully repaid their mortgage loan and the lender needs to formally release their security interest in the property. This document is governed by Law No. 4 of 1996 on Hak Tanggungan and related regulations of the National Land Agency (BPN). The form must include specific details about the property, the original mortgage, and the parties involved. Once properly executed and registered, it enables the property owner to have clear title to their property and, if desired, to create new security interests over the property. The document is particularly important in property transactions as it provides evidence that the property is free from any existing mortgage encumbrances.
