If your client is purchasing separate properties using one 'blanket' mortgage registered against all the properties, consider the need for a 'partial discharge' provision in the blanket mortgage. If, after purchasing, your client wants to sell one of the properties covered by the blanket mortgage, they need to promise their buyer that they will get rid of that blanket mortgage off the sale property.
Your clients may think they don't have to worry about a partial discharge plan because they plan to keep all properties, but as you all know, clients who think they are never going to sell are statistically wrong. Things happen, and they often do decide to sell. No matter what your client's plan is now, they have to allow for future contingencies.
If your client is obtaining a blanket mortgage, their most flexible position is that they can sell one or two properties and get a partial discharge of the blanket mortgage. This allows them to meet their obligation as a seller in the future to clear the title for the new buyer.
Your client (or you on their behalf) should get this partial discharge capability written into the mortgage commitment.
Cheers,
Barry
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