Identify the correct statement regarding restrictions registered by mortgagees on a title.

• A. The restriction will always require consent of the mortgagee to redeem
• B. Restrictions are a title issue and must be addressed in the transfer deed
• C. The Restriction registered by the mortgagee is not a title issue - consent is not required because the mortgage is redeemed at completion
• D. The restriction prevents completion unless consent is obtained

Answer: (C)

Restrictions registered by a mortgagee sit as a safeguard on the title to protect the lender’s security while the loan remains outstanding. They can usually restrict dealing with the land unless the mortgagee consents. But at the point of completion, the mortgage is repaid and discharged, and the restriction is released. Because the lender’s interest ends with the discharge, there isn’t a continuing title burden to deal with. The conveyancer will arrange the discharge or a Deed of Release to remove the restriction, so the title becomes free of that restriction after completion. This is why the statement that the restriction isn’t a title issue and that consent isn’t required because the mortgage is redeemed at completion is the correct one.