Receipt Deed
Receipt deed is a document acknowledging that a person has received money or property in payment following a sale or closing/reimbursement of loan/debts or other transfer of goods/things or provision of a service.
In common parlance, this receipt deed is usually used in cancelling the Memorandum of Deposit of Title Deed in pursuance of reimburse the entire loan amount. While obtaining a loan from the bank, the borrower executes the Memorandum of Deposit of Title Deed pertains to his/her immoveable property in favour of Banker/Mortgagee.
Typically, it’s the duty of the bank or Housing Finance Company to cancel the MODT (Memorandum of Deposit of Title Deed) after the closure of the bank loan. But most banks (mortgagee) in India thrust the duty onto the borrowers (mortgagor). So, when collecting documents from the bank after the settlement of your loan, do not take the MODT. Instead, insist on the bank cancelling the MODT and giving you a “Deed of Receipt” executed by the Banker/mortgagee in favour of the Debtor/mortgagor. However, if they do end up pushing it onto you, below are the guidelines on how to do the MODT be cancelled.
Steps for cancelling MODT:
Most MODT cancellations are similar by registering a receipt deed in favour of mortgagor by the mortgagee banker. In order to get the receipt deed be registered in the jurisdictional register office, the following documents are required.
- Original MODT
- Bank representative (Mortgagee – Executant) Office ID
- Authorization Letter from the bank that bank representative is the authorized person for executing the cancellation of MODT (if applicable)
- Encumbrance Certificate (EC)
- ID proof of Mortgagors/Claimant
- ID proof for 2 Witnesses
While drafting the receipt deed for cancellation of MODT, there should mention the paid amount with interest, discharge of entire liability, release of schedule property to the borrower which are important clauses.
An acknowledgement of receipt deed for cancellation of MODT can be printed on a green sheet paper and at the end of the recital affix a revenue stamp with a value of one rupees and ensure the signature of the representative of Banker generally the concerned current bank manager been put on it. You don’t need to use any stamp paper.
Hope this helps you get your MODT cancelled quickly. For any assistance required to prepare a same deed, you may contact to our Registration Boss…
