A common query among homebuyers and property sellers is whether the Memorandum of Deposit of Title Deed (MODT) is registered before or after the Sale Deed registration.
To clarify, MODT is registered after the Sale Deed because the property title needs to be transferred to the buyer before it can be used as collateral. However, in most practical scenarios, both the Sale Deed and the MODT are registered back-to-back at the sub-registrar’s office. This approach helps save time, minimize coordination issues, and reduce effort for all parties involved.
EFFICIENT PROCESS TO REGISTER MODT
Here is a step-by-step breakdown of the ideal process to register the MODT in conjunction with the Sale Deed:
1. Loan Sanction and MODT Execution:
Once the home loan is sanctioned, the lending bank executes the MODT and provides it to the purchaser.
2. Informing the Seller:
The purchaser must inform the seller that the loan has been approved and the bank’s disbursement cheque is ready.
3. Slot Booking at the Sub-Registrar’s Office:
The purchaser submits both the Sale Deed and MODT registration applications to the sub-registrar. It is advisable to book the same slot time to register both documents at the same sub-registrar office and on the same day.
4. Document Execution and Presentation:
On the day of registration, carry both the executed Sale Deed and the MODT to the sub-registrar’s office as per the booked time slot.
5. Back-to-Back Registration:
First, register the Sale Deed, immediately followed by the registration of the MODT.
6. Document Submission to the Bank:
After registration, the seller (or buyer, depending on the arrangement) must submit the original, registered Sale Deed and MODT to the bank. These documents serve as collateral. The bank will then release the loan amount cheque to the seller.
REAL EXAMPLE FOR REFERENCE
Let us illustrate this with a real-case scenario for better understanding:
- The Sale Deed was registered on 20-01-2024, and the registration number is 10477.
- Immediately after, the MODT was registered on the same day, 20-01-2024, in the same sub-registrar office, with registration number 10478.
Please refer to the below Encumbrance Certificates (ECs). We have highlighted the registration dates and numbers for both the Sale Deed and the MODT:
Sale Deed EC showing registration number 10477
MODT EC showing registration number 10478
The back-to-back registration numbers clearly indicate that both documents were registered consecutively and efficiently.
Following the registration, the Sale Deed and MODT were submitted to the bank, and the seller received the consideration cheque as part of the property transaction closure.
For assistance with property registration, write to us at pgnproperties@gmail.com or WhatsApp us at +91-97424 79020.