Satisfaction, Release or Cancellation of Mortgage by Individual
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 rules 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 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, then 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. A certificate of the satisfaction of a mortgage may be made in substantially the following form:
This certifies that a certain mortgage executed by of , mortgagor, to of , mortgagee, dated the day of in the year , upon the (here describe the property covered by the mortgage) and recorded in the office of the recorder in and for the county of and state of North Dakota, in book of mortgages on page or as document number , is paid and satisfied; and hereby authorize and require the recorder to discharge the mortgage of record in the recorder's office.
