PUTRAJAYA: The Public Sector Housing Financing Board (LPPSA) has clarified that the process of discharging a charge or transferring ownership rights after a housing loan has been fully settled is a long-established practice and not a new policy, as perceived by some parties.

In a statement today, LPPSA said it was aware of the confusion arising from recent announcements on the matter and sought to address misconceptions surrounding the procedure.

"The process of discharging a charge or transferring ownership rights after financing has been fully settled has long been practised as part of the procedures following the completion of financing.

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"The responsibility for completing the discharge of charge or transfer of ownership rights has always rested with the borrower," the statement said.

LPPSA advised borrowers to ensure that the process is completed promptly and properly to avoid potential complications in the future, particularly in matters involving inheritance, estate administration and property transfers.

To facilitate the process, LPPSA encourages borrowers to appoint a lawyer to manage the necessary procedures and documentation until completion, ensuring that all requirements are handled in an orderly and efficient manner.

However, it stressed that the recommendation to engage legal services is intended solely to safeguard borrowers' interests and ensure the smooth completion of the discharge process, and should not be viewed as a new obligation or an additional financial burden.

"The recommendation to appoint a lawyer is aimed at protecting borrowers' interests and ensuring that the discharge of charge process is completed properly. It is not intended to create new obligations or impose additional costs on borrowers," the statement said.

LPPSA emphasised that borrowers may still choose to handle the process themselves, provided they comply with all procedures and requirements stipulated by the relevant authorities.

The board noted that its observations found some borrowers had not completed the discharge of charge process despite having fully settled their financing, potentially leading to legal and administrative complications later on.

"LPPSA remains committed to providing transparent, efficient and customer-friendly services, while continuing efforts to raise awareness among borrowers on the importance of completing the discharge of charge or transfer of ownership rights once financing has been fully settled," it said.