The Law Amending the Land Registry Law and Certain Laws numbered 7181 ("Law") was published in the Official Gazette dated 10 July 2019 and numbered 30827 and introduced many impactful changes to the real estate industry.
One of the reforms introduced by the Law, effective as of 1 January 2020, presents a great opportunity for real estate owners to request the release of definite-term mortgages, provided that the term of the mortgage has expired.
Before this amendment, there was no explicit legislation permitting the release of expired definite-term mortgages from the land registry. This caused uncertainty in practice and real estate owners' requests for release from definite-term mortgages whose terms had expired were being rejected by most directorates of the land registry on the grounds that expiry of the mortgage's term did not entitle the real estate owner to claim release of mortgage. Additionally, written consent from the mortgage holder or their heirs was required, and if such consent was not provided, a lawsuit had to be filed to release the mortgages.
With the temporary opportunity introduced by the Law, real estate owners may now request the release of definite-term mortgages from the relevant directorate of land registry, as long as the term of the mortgage has expired, before 31 January 2020.