If you seek a home loan, be aware of Memorandum for Deposit of Title Deed (abbreviated as MODT). What is MODT? A MODT is an undertaking given by home loan borrowers stating that they have deposited the title documents with lenders. It is applicable to all types of home loans today.
For a few banks, the undertaking has to be registered in addition to the loan agreement. The government levies a stamp duty of 0.10-0.20% of the home loan amount. A MODT is one of the hidden home loan charges. Lenders require you to give this undertaking to recover debts in case you do not make payments on time.
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E-filing of intimation notice came into effect on 1st April 2013. E-filing is the digital documentation of the title deed. The new amendments have been introduced to protect the interests of society and the bank.
Stamp duty may be paid via any permissible option in case of physical filing. If you would like to pay by demand draft, it must be in favor of the concerned Sub-Registrar Office. Document handling fees must be paid in cash. In case of e-filing, stamp duty must be paid online via the Government Receipt Accounting System.
An individual can accumulate funds by depositing the title deed of a non-moveable property. Many states have made it compulsory with increasing home loan scams.
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