How To Cancel Your MODT

By arunpeter | August 31, 2018

Looking to cancel your Memorandum of Deposit of Title Deed (MODT)? Here’s help, especially for those in Tamil Nadu.

MODT

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:

  1. Original MODT
  2. NOC certificate
  3. Bank representative (Mortgagee – Executant) Office ID
  4. Aadhaar Card
  5. Authorisation Letter from the bank that bank representative is the authorised person for executing the cancellation of MODT (if applicable)
  6. PAN & Aadhar of Borrowers (Mortgagors – Claimant)
  7. 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

  1. 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).
  1. 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.
  1. 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.
  1. 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.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

8 thoughts on “How To Cancel Your MODT

  1. AvatarMadhu

    One letter is missing in my name in “Deed of Receipt” and also it is carry forwarded in Encumbrance Certificate. Can you let me know if this is to be rectified ?

    Reply
    1. AvatarTeam BankBazaar

      Hi Madhu,

      We’re sorry to hear this.
      It is best to get it corrected as the receipt/certificate can be considered invalid if your name isn’t spelled correctly.

      Cheers,
      Team BankBazaar

      Reply
  2. AvatarSundararajan A Santhanam

    What is the implication of not cancelling a MODT even after foreclosure of a home loan? The mortgagee had returned the MODT document back as part of the pre closure process

    Reply
    1. AvatarTeam BankBazaar

      Hi Sundararajan A Santhanam,

      Thank you for writing to us. If the lien has been released by the bank, you needn’t worry about the MODT. However, we suggest that you check with your bank regarding this.

      Cheers,
      Team BankBazaar

      Reply
  3. AvatarKK RANGAN

    Dear Sir,

    SBI has given back my MOTD original document. But bank rep is insisting on my preparing document (Deed of Receipt) and all other connected work including stamps, arranging witness etc and He will only visit registrar office after i get token issued as per dates convenient to him.

    Is it correct for bank to get the the MOTD returned without actually not registering DEED of receipt with the concerned SRO,?
    Is it not bank’s duty to complete all formalities as I as a mortgator need not sign any paper nor visit Registrar office to the Deed of receipt registered?
    Please advise what remedy and please quote authority for Bank’s duty to prepare, execute and sign and register the Deed of receipt after closure of Home Loan by the mortgagee?
    I have an issue with SBI RACPC, Chennai
    Thanks for your kind information and replies.

    Yours sincerely

    KK RANGAN

    Reply
    1. AvatarTeam BankBazaar

      Hi KK RANGAN,

      We are sorry to hear about this inconvenience caused to you. You can try getting in touch with the concerned bank and taking it up with them. If you are still unsatisfied with the response we suggest you reach out to the banking Ombudsman regarding your issue.
      All the best!

      Cheers,
      Team BankBazaar

      Reply
  4. Avatarabctest

    I closed the housing loan and collected original document from RACPC Chennai. For MOD cancel they requested to contact a SBI representative(provided mobile number). He is asking to contact a advocate to start processing MOD cancel with charges of 2500. Really not clear what is the procedure. For cancelling MOD charge in register office is around Rs. 200+

    Since the loan amount are settled to SBI and documents collected by customer. It is SBI’s responsibility to cancel MOD and close customer request. Still they are requesting some charges to cancel. This is not at all acceptable.

    Reply
    1. AvatarTeam BankBazaar

      Hi there,

      Thanks for getting in touch. We are sorry to hear about the inconvenience caused to you. You can try getting in touch with the concerned bank and taking it up with them.

      In the event that you don’t receive sufficient response, you can even try cancelling your MODT online. Here’s everything you need to know about it.

      If you are still unsatisfied, we suggest you reach out to the banking Ombudsman regarding your issue.
      All the best!

      Cheers,
      Team BankBazaar

      Reply

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