If you’re selling a property in Western Australia with a mortgage on it, your bank needs your signed permission before it will start releasing the mortgage. That form is called the discharge authority. Banks can take several weeks to prepare for settlement, so it’s the first thing to deal with after the contract is signed.

What the discharge authority does

Your bank will ask you to sign a form authorising the discharge of your mortgage. It is commonly called a discharge authority or a request to release security.

Sample forms turn up online, but ask your bank for its own so you know it’s the right one. Give the bank authority to deal directly with your settlement representative, because they will be doing the back and forth from there. You do this on the form itself.

Why it has to be early

Once the bank has your authority it starts preparing the discharge of mortgage, which has to be handed over at settlement. Banks can take several weeks to prepare to discharge the mortgage, so it’s good to get in early.

They will not generally start until the authority is in, so the clock only begins when you sign.

Frequently asked questions

What is a discharge authority?

It is the form that tells your bank to release the mortgage at settlement. Your bank provides it and you sign it.

How long does a bank take to prepare a discharge?

Several weeks is common. It varies between lenders, so ask yours early what it needs from you.

What happens if the discharge is not ready on the settlement date?

Settlement is delayed and the party who caused it can end up paying penalty interest to the other. A seller’s bank not being ready is the most common reason a settlement runs late.

Talk to us about your sale

We act for buyers and sellers on residential and commercial property settlements across Perth and Western Australia.

Call the settlements team on (08) 9220 4430 or download an itemised quote for your own sale.

Related: I’ve sold my house. When do I move out?

This article is general information and not legal advice. Every property transaction turns on its own facts.