695. Release of the security.

On payment of the mortgage money, a mortgage term becomes a satisfied term and a legal charge is discharged1. Strictly speaking, therefore, where the whole of the mortgage money is paid, no further documentation is required although this is desirable from the practical point of view of proof of the intent to discharge.

In the case of a mortgage by demise, the legal estate may be released or surrendered only by deed or by operation of law2 although an agreement to surrender which complies with the required formalities is effective in equity3. An informal surrender may be effective where, for