A client once approached us to draft his will, assuming he had everything needed, including his property title. However, upon reviewing his documents, we discovered the title was missing. He had fully settled his mortgage over twenty years ago with a bank no longer in existence, United Merchant Bank. He had assumed that the title would be returned automatically upon loan settlement. However, due to multiple bank mergers over the years, the property title had never been formally discharged and transferred back to him.
In Malaysia, when a housing loan is settled, the title does not automatically revert to the owner. A lawyer must be appointed to complete the Discharge of Charge process to recover rightful ownership of the property. If left unresolved, issues like this can complicate inheritance planning, refinancing, or selling the property.