Hi there. If a mortgaged property is sold, the seller will usually need to organise a ‘discharge of mortgage’ from the lender if the mortgage is to be repaid in full using the proceeds of the sale. From the information you provided, it appears that the bank has not granted you a discharge of mortgage for either property.

You should start by contacting the bank to find out why there is a delay and what you can do to ensure the mortgage is discharged as soon as possible. Without knowing the exact reason for the delay, it is difficult to determine whether you require further legal advice.

If the bank cannot adequately explain the reason for the delay or you otherwise have a grievance about poor service, you should lodge a written complaint with the bank’s internal complaints handling process. Instructions on how to lodge a complaint should be available on the bank’s website or by phoning their general enquires line.

If you are dissatisfied with the bank’s response, you can lodge a further complaint with the Financial Ombudsman Service (www.fos.org.au). This is an independent organisation responsible for investigating and resolving disputes in the banking and financial services sector. The FOS will assess your complaint and, if appropriate, investigate the matter. The bank will be given an opportunity to respond to your complaint before a resolution is reached via mediation, conciliation or another method.

Suggested way forward

You should begin by asking the bank about the reason for the delay in discharging the mortgage and what you can do to speed up the process. Depending on their response, you may want to speak to a lawyer for further guidance on whether you require professional legal advice. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.