When you take a home loan or property loan from a bank or financial institution, you typically need to execute a Memorandum of Deposit of Title Deeds (MoDT). This document legally confirms that your property acts as security against the loan.
What is MoDT Execution?
MoDT execution is the formal process of registering your property title deeds with the lender, officially establishing their right over your property until the loan is fully repaid.
Here’s the simple breakdown:
- Pay the required Stamp Duty and Registration Charges: These charges vary depending on the state laws and the amount you’re borrowing.
- Register the MoDT at the local Registrar’s Office: This step formalizes the lender’s security interest in your property.
Documents Required for MoDT Execution:
Ensure you have the following documents ready:
- Xerox copy of the property documents being offered as collateral
- MoDT format document provided by your lender
- Government challan as per applicable state regulations
- Xerox copies of PAN and Aadhaar cards of the property owner(s)
- Aadhaar copies of two witnesses
How to Cancel MoDT?
Once your loan is fully repaid, the MoDT needs to be cancelled to free your property from the lender’s hold. This involves:
- Obtaining a No Dues Certificate (NDC) or Loan Closure Certificate from your lender.
- Submitting the NDC along with a cancellation request at the Registrar’s office where the MoDT was initially executed.
- Paying nominal cancellation fees as required by local laws.
Why Understanding MoDT Matters?
Clear understanding and timely cancellation of MoDT ensures your property remains legally trouble-free and fully available for future transactions or loans.
Simplify the MoDT Process with Lendly
At Lendly, we make complex processes simple. Whether it’s execution or cancellation of MoDT, our expert team can guide you step-by-step.
Have more questions?
Reach out to a Lendly Home Loan Advisor now for expert assistance!