MODT (Memorandum of Deposit of Title Deed)

Overview

MODT stands for Memorandum of Deposit of Title Deeds. It is the document used in what is called an equitable mortgage. Instead of signing and registering a full mortgage deed, you hand over the original title deeds of your property to the lender and sign a memorandum that records why you did so: to secure a loan.

This route is widely used for home loans, loans against property and business loans. The deposit of the deeds is what creates the mortgage, and the memorandum serves as written proof of it. The document names the borrower and the lender, lists every title document deposited, describes the property and records the loan amount and the date. Whether the memorandum must be stamped and registered, and at what cost, depends on the state and on how the lender's lawyers have advised, which is why people planning a loan are sometimes caught out by extra charges after sanction.

We prepare the MODT in the format your lender expects, check that every deed deposited is listed correctly and take care of stamping and registration wherever they apply. Once the loan is closed, the deeds are returned and the charge needs to be formally cleared, which is a separate step and not automatic. Keep a copy of the memorandum and note the date of deposit.