On 30 March, the Property Registration Authority (PRA) will begin the introduction of a new system for the cancellation of the entry of a registered charge by electronic means. This new system, called the ‘eDischarge’ system, will provide for the cancellation of a charge on a folio when an application, in the form set out in SI 326 of 2008, is made directly by the lender. The eDischarge system has been a collaborative initiative between the PRA, Law Society and Irish Mortgage Council (IMC), and it is anticipated that this new system will eliminate many of the inefficiencies and delays in the release of registered charges.

Initially three lenders, Permanent TSB, AIB and KBC Bank, will participate in a live pilot from 30 March and, two weeks later on 14 April, other lenders will join the system.

As part of this initiative and in order to gain maximum benefit from the introduction of the eDischarge system, the Law Society and IMC examined the procedures for solicitors requesting title deeds, redemption figures and discharge of a charge. A new streamlined procedure for all residential property, both registered and unregistered, is to be introduced by these lenders in tandem with the launch of the eDischarge system. This procedure is based on a standard form called QeD (‘Quick electronic Discharge’) for residential property.

Application of QeD form
The QeD form will operate in respect of all residential property, both registered and unregistered. This form will replace the standard form of wording previously recommended by the Law Society for solicitors requesting mortgage redemption figures (November 1999 Gazette). The form is intended to remove inefficiencies in communications between solicitors and lenders by adopting a standardised approach and by providing clarification on the appropriate channels for such communications.

Communication channels
All participating lenders have agreed to publish the relevant addresses for receipt of the QeD form on the IMC website. For some lenders, this will be a central channel – however, for other lenders, there may be different channels depending on the nature of the request. This information will be updated as and when required.

Requests for title deeds, redemption figures and discharge of a charge sent to the appropriate channel will result in the quickest response. Lenders have requested that solicitors discourage the mortgagor(s) from separately seeking a redemption figure, as multiple requests delay the process. It is acknowledged that solicitors will of course have to seek redemption figures on receipt of the initial instruction to sell/remortgage and also for closing of the sale/remortgage.

QeD form
The QeD form will also be hosted on the IMC website and practitioners will be able to download and complete the form at their desktop. A user guide is available to assist practitioners in completing the form.

Time limits
Lenders have acknowledged to the Law Society that the timelines in the QeD form are upper limits and they will endeavour to process requests well within those timelines; however, this is dependent on the form being correctly completed and sent to the appropriate channel for that lender. These timelines correspond with those agreed as part of the new certificate of title documentation to be launched shortly. The timelines are ten working days for redemption figures and ten working days for title deeds in the lender’s possession (or ten working days of them coming into the lender’s possession).

Redemption figure
Practitioners are reminded that interest continues to run on the secured debt pending clearance of funds and this should be taken into account when calculating the amount of redemption monies to be lodged with the lender. The QeD form requires the lender to quote figure(s) for all sums secured by all mortgage(s)/charge(s) against the property in its favour including:

• The amount of daily interest accruing and accrued,
• Breakage costs (if applicable),
• All legal and/or other expenses, costs or charges associated with the furnishing of the title deeds,
• All legal and/or other expenses, costs or charges associated with the release/discharge of the security/ies, and
• All and any other applicable costs and charges.

This is called the ‘redemption figure’ and, on receipt of this amount, the lender must authorise an eDischarge or execute a (paper) release or vacate, as appropriate. If, after completion, the figure is found to be inadequate, the lender cannot withhold the eDischarge, release or vacate.

Application of the eDischarge system
The eDischarge system will operate in respect of registered land (both residential and commercial). It will not apply where a certificate of charge has been lost, mislaid or destroyed. Certificates of charge, however, cease to have effect from 1 January 2010. The system will also not apply to partial discharges of registered charges. In these instances, the financial institution will continue to seal a (paper) deed of release or vacate (as appropriate) and after sale and redemption of the charge will forward this deed to the solicitor, as is currently the practice.

Where, however, the charge is:

• In respect of registered land, and
• There is no certificate of charge or the certificate of charge has been forwarded to the lender, and
• The redemption is a full discharge of the charge, and
• The lender is participating in the eDischarge system,

then the lender will not seal a (paper) release or vacate. Instead, on receipt of the redemption figure and a request from the solicitor for discharge, the lender shall, within 21 days, lodge an application by electronic means directly with the PRA for full discharge of its charge. On foot of this application, the PRA shall, within three days, cancel the entry of the registered charge on the folio and issue notice of completion by email. A copy of this notice will issue simultaneously to the solicitor nominated by the lender when lodging the eDischarge application.

Email communication
The PRA will be contacting solicitors over the coming weeks to ensure that firms nominate an appropriate email address for communication of these notices. The Law Society has provided the PRA with a list of all solicitor practices and associated email addresses. The PRA will email all practices requesting that they supply a nominated email address for the service of notices. Practices will only need to respond if they wish to nominate a different address than the one supplied by the Law Society. Where there is no associated email address, or the address is no longer valid, the PRA will issue the request by post. Practices that do not supply a valid email address will not receive automatic notification of completion of eDischarge applications.

In nominating an email address, firms might like to bear in mind that many government bodies, including the PRA, have a mandate from government to increasingly use email to communicate with its customers. It goes without saying that any nominated email address must be checked regularly for communication and, if a standard firm email address is being used, emails will need to be disseminated to the appropriate people within the firm. To assist with this, the file reference supplied to the lender by the solicitor will be included in the notice of completion.

Undertaking on closing
Given that a (paper) release or vacate will no longer issue where the eDischarge system is being used, practitioners will need to provide a different form of undertaking on closing. The following form of wording is suggested as appropriate to be furnished by the vendor’s solicitor to the purchaser’s solicitor on closing of a sale where the eDischarge system will apply:
“We hereby undertake to redeem the mortgage in favour of bank and to furnish a copy folio showing the cancellation of the mortgage as a burden at entry number at part 3 of Folio County within one week of receiving notice of completion from the PRA.”

Participating lenders
A fully up-to-date list of participating lenders will always be available at www.edischarges.ie/lenders.aspx. Practices will also be notified of any changes to the list by email to their nominated mailbox.

Queries in relation to the eDischarge system or the QeD form should be directed to Dr Gabriel Brennan, Law Society eConveyancing Senior Advisor.

eConveyancing Task Force and Conveyancing Committee