Assignment of Mortgage by Individual Mortgage Holder
Assignment and Satisfaction
of Mortgages
Assignments Generally:
Lenders, or holders of mortgages or deeds of trust, often assign mortgages or deeds of trust
to other lenders, or third parties. When this is done the assignee
(person who received the assignment) steps into the place of the original
lender or assignor. To effectuate an assignment, the general rule
is that the assignment must be in proper written format and recorded to
provide notice of the assignment.
Satisfactions Generally:
Once a mortgage or deed of trust is paid, the holder of the mortgage is required to satisfy
the mortgage or deed of trust of record to show that the mortgage or deed
of trust is no longer a lien on the property. The general rule is that
the satisfaction must be in proper written format and recorded to provide
notice of the satisfaction. If the lender fails to record a satisfaction
within set time limits, the lender may be responsible for damages set by
statute for failure to timely cancel the lien. Depending on your state,
a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance.
Some states still recognize marginal satisfaction but this is slowly being
phased out. A marginal satisfaction is where the holder of the mortgage
physically goes to the recording office and enters a satisfaction on the
face of the the recorded mortgage, which is attested by the clerk.
North Dakota Law
Execution of Assignment or Satisfaction:
Must be signed by the owner of the mortgage.
Assignment:
An assignment must be in writing and recorded.
Demand to Satisfy:
Within sixty days after any mortgage is satisfied, or within thirty days of receipt of a
written demand of the owner of the property, whichever is shorter, the
owners of the mortgage or other lien shall execute a certificate of discharge
duly acknowledged, and cause a satisfaction of record to be entered. Any
mortgagee or owner of a mortgage or lien who fails to execute or deliver
a discharge or to enter a satisfaction as provided under this section is
liable to the owner of the property for all damages sustained as a result
of the refusal and exemplary damages of one hundred dollars.
Recording Satisfaction:
A recorded mortgage must be discharged upon the record by the recorder having custody of the
mortgage on the presentation of a certificate of discharge signed by the
mortgagee and properly acknowledged.
Penalty:
Any mortgagee or owner of a mortgage or lien who fails to execute or deliver a discharge or to enter a satisfaction
(see above, Demand to Satisfy) is liable to the owner of the property
for all damages sustained as a result of the refusal and exemplary damages
of one hundred dollars.
Acknowledgment:
An assignment or satisfaction must contain a proper North Dakota acknowledgment, or other acknowledgment
approved by Statute.
North Dakota Statutes
35-01-27. Discharge of mortgage or lien on real property - Penalty.
Within sixty days after any mortgage or other lien upon real property
is satisfied or within thirty days of receipt of a written demand of the
owner of the property, whichever is shorter, the owners of the mortgage
or other lien shall execute a certificate of discharge duly acknowledged,
and cause a satisfaction of record to be entered. The fee for filing
the satisfaction must be paid by the owner of the property or added to
the debt paid by the owner of the property. Any mortgagee or owner of a
mortgage or lien who fails to execute or deliver a discharge or to enter
a satisfaction as provided under this section is liable to the owner of
the property for all damages sustained as a result of the refusal and exemplary
damages of one hundred dollars.
35-03-11. Certificate of discharge - How recorded.
A certificate of the discharge of a mortgage and proof or acknowledgment of the discharge
must be recorded at length and a reference made in the record to the
book and page or document number where the mortgage is recorded and of
the minute of the discharge, made upon the record of the mortgage, to the
book and page or document number where the discharge is recorded.
35-03-16. Satisfaction of mortgage - Discharge - Form - Power
of attorney.
A recorded mortgage must be discharged upon the record
by the recorder having custody of the mortgage on the presentation of a
certificate of discharge signed by the mortgagee, the mortgagee's executors,
administrators, guardians, trustees, assigns, personal representatives,
or special administrators appointed for that purpose, properly acknowledged
or proved and certified as prescribed by chapter 47-19. The certificate
of discharge must contain a brief description of the mortgage and must
state that the mortgage has been paid in full or otherwise satisfied and
discharged and that the officer is authorized to discharge the mortgage
of record. Any person executing a certificate of discharge as a personal representative
of the mortgagee first shall file and have recorded in the office of the
recorder where the mortgage is recorded, a power of attorney showing the
person's authority to discharge mortgages in behalf of the mortgagee and
in the mortgagee's name. The mortgagee shall present the certificate of
discharge to the recorder for recording in the county in which the property
is located within thirty days after the certificate of discharge is signed.
The mortgagee may add the amount of the recording fee to the balance of
the debt paid by the mortgagor.
