Your home loan is sanctioned, and the bank asks you to come to the Sub-Registrar's office to sign a document called a MODT, sometimes written as MOTD. It is one of the last steps before the money is released, and many borrowers sign it without knowing what it does to their flat.
With a home loan, the bank does not take ownership of your flat. It takes a claim over it as security. In Karnataka this is usually done as an equitable mortgage: you hand the original title deeds to the bank, and the MODT is the registered document recording that you did so.
What Is a MODT?
MODT stands for Memorandum of Deposit of Title Deeds. It records that a borrower has deposited the original property documents with a lender as security for a loan. It is widely used for home loans in Bengaluru and across Karnataka because it is a simpler route than drawing up a full mortgage deed.
MODT vs a Full Mortgage Deed
| MODT | Registered Mortgage Deed | |
|---|---|---|
| How security is created | By depositing the original title deeds, recorded in a short memorandum | By a detailed mortgage deed that is itself registered |
| Paperwork | Simpler and quicker | Longer and more involved |
| Typical cost | Generally lower | Generally higher |
| Where you see it | Most home loans in Karnataka | Less common for home loans here |
Who Needs a MODT?
Anyone borrowing against a property: a home loan to buy a flat, a loan against property, or a balance transfer to a new lender. If you buy entirely from your own funds, there is no loan and no MODT. Registration of the MODT is generally required for home and property loans in Karnataka, but your bank will confirm the exact requirement for your loan.
How MODT Registration Works
What It Costs
Published figures disagree, so do not budget from a blog. For Karnataka, some sources quote a flat, capped stamp duty. Others quote a percentage of the loan amount for stamp duty plus a separate registration fee, and some put the combined cost at around 0.6% of the loan. The rates are set by notification and have changed over time.
- ● The borrower usually pays, unless the bank has built the cost into its charges
- ● Stamp duty paid is generally not refundable, even if the loan is later cancelled
- ● Ask your bank for the exact stamp duty and registration amounts in writing, and cross-check them with the fee calculator on the Kaveri portal
What a Registered MODT Means for You
- ● You remain the owner. The bank holds a charge over the flat, not the title itself
- ● It appears as a mortgage entry on the property's Encumbrance Certificate, as we explain in our EC guide
- ● Selling, or mortgaging the flat again, needs the existing loan to be cleared first
- ● Your original documents sit with the bank until the loan is closed
When the Loan Ends: Getting the Mortgage Released
Paying the last EMI does not clear the mortgage from the records on its own. A few things are worth doing:
- ● Get a loan closure or no-dues letter from the bank
- ● Collect your original title deeds and check them against the list you deposited
- ● Ask the bank what release or cancellation document it issues, and make sure the release is recorded
- ● Pull a fresh Encumbrance Certificate afterwards to confirm that the release shows up against the mortgage entry
If You Are Buying a Flat That Has a Loan on It
This is where the MODT matters most to resale buyers. The seller's original deeds are with their bank, and the EC will show a mortgage entry. A few practices help:
- ● Ask for the seller's loan statement and the bank's foreclosure figure before you agree on a payment plan
- ● Arrange for the outstanding loan to be cleared directly with the seller's bank, against a closure letter and the original deeds, rather than paying the full price to the seller and trusting them to repay it
- ● Write the loan clearance steps and deadline into the sale agreement
- ● Re-check the EC just before the sale deed is registered
Our Sale Agreement vs Sale Deed guide and resale checklist cover the surrounding steps.
Frequently Asked Questions
Yes. MODT is the correct abbreviation for Memorandum of Deposit of Title Deeds. MOTD is a common misspelling of the same thing, and you will see both online.
Generally no. In Karnataka it is registered at the Sub-Registrar office whose jurisdiction covers the property. Your bank will tell you which one.
No. You stay the owner. The bank holds a charge over the property as security and keeps your original deeds until the loan is repaid.
The outstanding loan has to be cleared and the mortgage released as part of the sale. This is usually arranged between your bank and the buyer or the buyer's lender, so involve the bank early.
Buying a flat that still has a home loan on it?
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View Pricing & Get StartedLast verified: October 2026. Stamp duty and registration fees for MODT in Karnataka are quoted differently across published sources and change by government notification, so confirm the current amounts with your lender and on the official Kaveri portal before you pay. This article is general guidance, not legal advice. Read your loan agreement and MODT carefully, and have a lawyer review them if anything is unclear.