The Massachusetts Appeals Court decided last week that a mortgage stating it is payable “on demand,” with no maturity date or term, is governed by the so-called obsolete mortgage statute, M.G.L. c. 260, § 33. The case is Thornton v. Thornton and alink to the decision is here.

If the mortgage lien is long standing, some state legislatures have provided statutory relief in clearing the lien. In Massachusetts, M.G.L. Chapter 260, Section 33 deems a mortgage unenforceable either (i) 35 years from the date of recording if no mortgage term is stated, or (ii) 5 years from the expiration of the mortgage term or maturity date stated in the mortgage, provided there has not been a recorded extension of the mortgage in either circumstance. Regardless of the remedies available, the reality is that having to pursue a discharge of mortgage long after the payoff has occurred results in costs and delays that can often be avoided by taking the time to follow up and confirm that satisfaction gets on record at closing or soon after – now you can celebrate!

There are borrowers out there who believe that the Massachusetts Obsolete Mortgage Statute,M.G.L. c. 260 sec. 33, relieves them of their repayment obligations. This statute, amended back in 2006, provides that five years after a mortgage reaches its term (or 35 years after the time the mortgage is recorded where a maturity date is not specified)it will be discharged by operation of lawabsent the timely recording of an extension or affidavit.