What is a Real Estate Mortgage (REM)?
A Real Estate Mortgage is a legal contract where you (the Mortgagor) use your property as collateral to secure a loan from a lender like BDO or Pag-IBIG (the Mortgagee).
The most important thing to know is that while you keep the keys and live in the house, the lender has a legal lien or claim over it. This is “annotated” (written) on the back of your Transfer Certificate of Title (TCT) at the Registry of Deeds.
The Implications of an REM
- Encumbrance: Your title is not “clean.” The annotation serves as a public warning that the bank has a claim on the property.
- Restriction on Sale: You cannot easily sell or transfer the property to someone else without the bank’s permission or without paying off the loan first.
- Foreclosure Risk: If you default on your payments, the REM gives the bank the right to seize and sell the property at a public auction to recover the debt.
Why must the REM be “Cancelled”?
Even after you pay your very last monthly amortization, the Registry of Deeds does not automatically remove the mortgage annotation. If you don’t manually go through the cancellation process:
- The Title Stays “Clouded”: Future buyers or banks will see the mortgage and assume you still owe money.
- Estate Issues: If you pass the property to your heirs, they will have a harder time transferring the title if the old mortgage is still listed.
- Refinancing: You won’t be able to use the house as collateral for a new loan (like a business loan) because the old one still appears active.
Steps to Cancel your Real Estate Mortgage
Once you’ve made that final payment, follow these steps to clear your title:
1. Obtain the “Release of Mortgage” Documents
Contact your bank or Pag-IBIG. Once they verify your full payment, they will issue a Cancellation of Real Estate Mortgage, notarized Real Estate Mortgage, your Original Owner’s Duplicate Title, and a “Paid” stamped copy of the original Mortgage Contract.
2. Pay the Documentary Stamp Tax (DST)
Visit the BIR (Bureau of Internal Revenue) to pay the DST on the release. This is usually a small fixed amount (around ₱30), but it is a required step before the Registry of Deeds can act.
3. Submit to the Registry of Deeds (RD)
Go to the RD office where your property is registered. Check the title or tax declaration to determine where the property is located or registered before going to any of the registries.
📌 The following are the jurisdictions of the Registry of Deeds located in Cavite:
| OFFICE | ADDRESS | JURISDICTION |
|---|---|---|
| RD Cavite Province | Capitol Compound, Trece Martires City, Cavite Province, 4109 | All lands located in Dasmarinas, General Trias, Indang, Imus, Naic, Ternate, Tanza, Maragondon GMA, Carmona, Magallanes |
| RD Trece Martires City | Trece Martires City Hall Building, Ground Flr., Brgy. San Agustin, Trece Martires City, 4109 | All lands located in Trece Martires City only |
| RD Bacoor City | New Bacoor City Hall, Molino Blvd. Molino, Bacoor City, Cavite, 4102 | All lands located in Bacoor City only. |
| RD Cavite City | Brgy 62-A, J.Ibanez St., Canacao Bay Samonte Park, Cavite City | All lands located in Cavite City (Kawit, Noveleta, Rosario) |
| RD Tagaytay | Registry of Deeds, Akle St. Kaybagal, South Tagaytay City | All lands located in Silang, Tagaytay City, Mendez, Amadeo, Alfonso, Bailen (Emilio Aguinaldo) |
Submit the notarized Deed of Release, the Owner’s Duplicate Title, and the BIR tax clearance/receipt. Fill out the Mandatory Registration Information (MRI) Form for Cancellation of REM.
4. Pay Registration Fees
The RD will assess a registration fee based on the value of the mortgage being cancelled. Once paid, a “Land Registration Examiner” will verify the documents.
5. Claim Your “Clean” Title
After a few days (or weeks, depending on the workload), the RD will return your Owner’s Duplicate Title. Look at the “Memorandum of Encumbrances” page at the back, the mortgage entry should now be stamped “CANCELLED.” Once released, verify that the mortgage annotation is fully cancelled before leaving RD.
Congratulations! Only after this final step is the property truly, 100% yours in the eyes of the law.
