Looking to cancel your Memorandum of Deposit of Title Deed (MODT)? Here’s help, especially for those in Tamil Nadu.
Typically, it’s the duty of the bank or Housing Finance Company to cancel the MODT (Memorandum of Deposit of Title Deed) after the closure of the Home Loan. But most banks (mortgagee) in India thrust the duty onto the borrowers (mortgagor). So, when collecting documents from the bank after the settlement of your loan, do not take the MODT. Instead, insist on the bank cancelling the MODT and giving you a “Deed of Receipt” executed by the mortgagee in favour of the mortgagor. However, if they do end up pushing it onto you, below are the guidelines on how to do the MODT Cancellation.
Steps for cancelling MODT
Most MODT cancellations are similar. Here’s how to do it if you are a resident of Tamil Nadu. In February 2018, the TN government launched the portal, STAR 2.0 (Simplified and Transparent Administration of Registration 2.0) [https://tnreginet.gov.in/portal]. Citizens can get themselves registered on the portal for free and get started.
Additional Reading: Home Loan FAQs
People who want to avoid corruption/bribes in the registration offices can opt for the online route. The site provides various document types that can be created online. The website is in its nascent stage, but it serves the basic framework for most documents which will cover 80% of the cases. People whose situation is complicated might still have to employ the services of a specialist. If you have only the simple requirement of MODT cancellation, you can easily do it yourself in half a day if you have all the documents handy.
The documents required are:
- Original MODT
- NOC certificate
- Bank representative (Mortgagee – Executant) Office ID
- Aadhaar Card
- Authorisation Letter from the bank that bank representative is the authorised person for executing the cancellation of MODT (if applicable)
- PAN & Aadhar of Borrowers (Mortgagors – Claimant)
- ID (preferably Aadhaar) for 2 Witnesses
To create a MODT Cancellation document you need to select the document type – “Deed of Receipt” and link the previous document i.e. Original MODT using its RegistrationOffice/ DocumentID/ Booklet/ Year/ RegularDoc. Once you select your MODT from the search result, all details from the previous document will be made available as selectable values in the new form i.e. Deed of Receipt.
Additional Reading: Home Loan Document Checklist
All you must do is meticulously fill in all the details and keep pressing Next / Save and Continue. Since mortgagors are claimants, “Is the Mortgagor also going to execute the document?” need not be selected in the ‘Mortgagor’ tab. Finally, the draft document will get created with a temporary document ID.
Once a document is created, you can preview, save and print the document. The print button on the page will give you the option to fill in stamp paper related details [e-Stamping is now available in various states with Stock Holding Corporation of India Limited (SHCIL)], but for MODT cancellation you don’t need to use any stamp paper. You just need to print the document on a green sheet (as a draft copy). However, photocopies of IDs uploaded can be on white paper. Ensure the photos on the ID proof are visible when you photocopy them.
Typically, the fees for Deed of Receipt is less than Rs. 200 (this is available on the Valuation tab)
- Stamp Duty – Re. 1
- Registration Charges – Rs. 20
- Computer Fees – Rs. 100
- CD Charges – Rs. 50
People can pay for services availed online using net banking. Once you have paid the charges, you must “Initiate Token” i.e. schedule an appointment. Once an appointment has been booked, it can’t be changed, so be sure before you hit ‘Submit’. Finally, take a print-out of Appointment and Payment Acknowledgement (on white paper) and attach them to your printed Deed of Receipt.
Users can also get their queries clarified using the toll-free number 1800 102 5174.
On the day of registration, you need to carry the original MODT and NOC certificate. You will find the registrar’s deputy who will do the preliminary review of the document and mark it as ‘Reviewed’. Subsequently, it goes to the Registrar for Approval who will review the bank representative’s credentials. Then the photo and the fingerprint scan of the mortgagee is collected and the payment verification is done. Incremental fees, if any, needs to be paid (receipt copies are issued). Finally, a copy of the payment receipt (initialled by the registrar) and the biometric ID copy along with the “Deed of Receipt” shall be submitted to the office and a register should be signed by the witnesses.
Additional Reading: The Dos And Don’ts For Home Loan Prepayment
Points to note
- If you select the “Create Document” Option, then “Drafted By” seal (of the advocate/document writer) is not required [they charge somewhere between Rs. 200- Rs. 500 just to put the seal]. If you have selected “Abstract for Draft Deed” Option, then the “Drafted By” is necessary. You can select the Create Document option, (this way the computer operator at the registration office will be able to view and edit any mistakes. This is not possible with the ‘Abstract for Draft Deed’ option).
- The Sub-Registrar office mainly checks for ‘Schedule of Property’ sheet to check whether it matches with the Original MODT. Since my original MODT was manually typed, the Property Boundary was manually typed and those values were not available in the dropdown of the portal (which only accepts Street Name). I had to type the same in the Property Description box. Having typed it there saved me from reworking as the registrar was particular about matching the property boundary details in the Deed of Receipt. Other details like Taluk, Ward, Block, etc. can be found in the Encumbrance Certificate (EC) if not mentioned in the Original MODT.
- In fact, try to retain the same info as available in the original MODT (including the address of the mortgagors – though they might have moved to the new house they bought). I still had the Aadhaar with the old address so I could use the old address that matched with the MODT. I personally feel this shouldn’t be an issue as long as you give the address mentioned in your Aadhaar as Aadhaar is accepted by all government offices.
- In the tab ‘Return of Documents,’ you could select one of the witnesses, instead of the mortgagee, to collect the document from the registrar office after a week or so. The bank representative need not come again.
Hope this helps you get your MODT cancelled quickly. Yet to get your dream home? There are great Home Loan offers waiting just for you!
Arun Peter is Manager, Campaign Management at BankBazaar. Armed with CA & DISA degrees, and having more than 6 years of experience in financial services, Peter is a keen follower of information technology and football. Says Peter, “as part of the CA Community we are constantly involved & updated about the latest e-governance initiatives by the government.” Peter likes to personally adopt and promote these initiatives that are being taken to help citizens and build a transparent government system.