Which matter is included in the undertaking to discharge the seller's mortgage?

• A. An undertaking to discharge the seller's mortgage forthwith on completion
• B. An undertaking to transfer the keys to the buyer's lawyer
• C. An undertaking to obtain a new mortgage
• D. An undertaking to insure the property

Answer: (A)

In a property sale, the buyer must receive a title free of the seller’s existing mortgage at completion. The undertaking to discharge the seller’s mortgage forthwith on completion is the formal promise by the seller’s solicitor to ensure the loan is paid off and a mortgage discharge is produced at the moment of completion. This guarantees the lender’s interest is cleared and the title passes unencumbered to the buyer. The other options don’t fit because handing over the keys relates to possession, not debt discharge; obtaining a new mortgage is a separate financing matter; and insuring the property is a general ongoing obligation, not the act of discharging the seller’s loan on completion.