Let me help with: Is MODT mandatory in Telangana? The Memorandum of Deposit of Title Deed (MODT) is a crucial legal requirement for home loans, as it serves as an equitable mortgage agreement between the borrower and the lender. Under the Indian Registration Act, 1908, an MODT must be registered when a borrower pledges property documents as collateral for a loan. While an MODT is not mandatory for all loans, it is compulsory for home loans where immovable property is offered as security.
Is MODT Charges Mandatory for Home Loan in Telangana?
In Telangana, MODT registration must be done at the local sub-registrar’s office, and stamp duty and registration fees apply. The stamp duty for MODT in Telangana is typically 0.5% of the loan amount (subject to a maximum cap), while the registration fee is 0.1% of the loan amount.
These charges ensure the mortgage is legally enforceable. Without MODT registration, the lender has no legal claim over the property in case of loan default, making it a critical step for home loan approvals.
However, some exceptions exist. For example, if a borrower opts for a loan against other securities (like fixed deposits or insurance policies), MODT may not be required. Additionally, government-backed loans or certain financial institutions may have different documentation norms.
Once the loan is repaid, the borrower must cancel the MODT by obtaining a No Objection Certificate (NOC) from the lender and submitting it to the sub-registrar’s office.
This releases the property from the mortgage. Thus, while MODT is not mandatory for all loans, it is a legal necessity for home loans involving property mortgages in Telangana.
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Is MODT Mandatory In Telangana?
ashish
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2025-06-17T12:04:05+00:00 2025-06-17T12:04:06+00:00Comment
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