Situation

Occasionally, ISC receives an application to discharge an annuity mortgage. The Land Titles Act, 2000 has its own special requirements when dealing with the discharge of an annuity mortgage.

NOTE: The difference between a regular mortgage and an annuity mortgage is that in the case of a regular mortgage, a charge of land is created for securing the payment of a debt or loan. In the case of an annuity mortgage, a charge of land is created for securing the payment of a sum payable on a yearly basis.

Solution

To discharge an annuity mortgage, ISC requires the following additional documents as authorization:

1. Proof of death of the annuitant.  Attach a Death Certificate, Letters Probate or Letters of Administration for the deceased annuitant:
2. Proof of the occurrence of an event upon which the annuity ceases to be payable and proof that all arrears of the annuity and interest have been satisfied. This proof must be submitted through affidavit evidence by either the annuitant or the annuitant's solicitor. If there is no specified event referred to in the annuity mortgage, ISC cannot accept a discharge on this basis: or
3. A court order.