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Q.

What Is MODT Cancellation Charges?

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MODT cancellation charges refer to the legal lien placed by lenders over your property deeds when you take a home loan. It secures the lender’s interest until full repayment. After clearing your loan, the MODT must be formally cancelled to legally restore clear ownership of your home. 

MODT cancellation charges are a one-time fee in the range of 0.2% to 0.5% of the original loan amount. These charges are often capped (e.g., at Rs. 25,000) depending on the lender or state rules.

After loan repayment, 

  • Request an NOC from the lender certifying all dues are cleared and approving MODT cancellation.

  • Draft a Cancellation Deed stating the loan is repaid and the lender consents to extinguish the MODT. Both borrower and lender (or their authorized representatives), plus two witnesses, must sign the deed.

  • File the deed at the Sub-Registrar’s office, and pay required registration & stamp duty charges as per state rules. 

After registration, you’ll get back original title deeds and updated land records showing the cancellation.

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