The full and final settlement of mortgage dues is paid in respect of MEMORANDUM OF DEPOSIT OF TITLE DEEDS (MODT), the lender will issue the Loan Closure Certificate and Discharge Deed for registration in sub-registrar office
Once the Discharge Deed is registered in sub-registrar office, the mortgage lien on your property is removed
Once the mortgage due is paid, collect the following documents from lender
- Loan Closure Certificate
- Exemption letter
- Discharge deed
- Title Documents
The “Loan Closure Certificate” looks like below image, stating that loan dues have been paid 
The “Exemption Letter” looks like the image below, it means that the lender is exempted from personal presence in the sub-registrar office for the Discharge Deed registration. We highlighted the Section 88 in below image for your reference
DISCHARGE DEED looks like the below image
TITLE DOCUMENTS is the list of documents that you handed over to lender at the time of MODT registration, lender will hand back those documents. TITLE DOCUMENTS include registered deed and Khata.
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The next step is to remove the mortgage lien registered in sub-registrar office:
For your better understanding, let me give a real example that how I removed mortgage lien of my property in sub-registrar office,
On 20th August 2015, we registered the MODT with State Bank of India (SBI) in Basavanagudi sub-registrar office.
In Encumbrance Certificate, column 5 represents the seller and Column 6 represents the buyer. In MODT registration, bank’s name is reflects in buyer column 6, we encircled the bank details in below EC
On 22nd March 2016, we paid the full and final settlement of Loan dues, the settlement date has been encircled in below discharge deed issue by bank
On 26th May 2022, we collected the following documents from bank
- Loan Closure Certificate
- Exemption Letter
- Discharge deed
- Title Documents
Submitted an application on Kaveri Online Service. Usually, the application is approved within 2–3 working days. Make the payment and book the slot for registration
The following are the government fee:
- Stamp Duty: Rs. 200
- Registration fee: Rs. 200
- Scanning Rs. 35 per page
Refer to the below transaction receipt
As per our registration slot on 26th May 2022, we took the following documents to Basavanagudi sub-registrar office for discharge deed registration.
- Application summary report
- Exemption Letter and Discharge Deed
- Aadhar
- Transaction receipt
Submitted the above-listed documents at the registration counter, the officer took the thumb impression, photo, and OTP authenticated for Discharge Deed Registration
Below is the image of registered Discharge deed,
We extracted the below Encumbrance Certificate (EC) immediately after the discharge deed registration. In below EC, column 5 represents the seller and column 6 represents the buyer.
In Discharge Deed, Bank name reflects in seller column 5 and owner name reflects in buyer column 6. It means that we removed Mortgage lien from the registry.
NOTE:
- The discharge deed is applicable if MODT is registered with bank. Few banks collect the title documents and don’t do MODT registration. For such cases, collect back the title documents from the bank suffice.
- The Discharge deed should be registered in sub-registrar’s office within 90 days from the day bank hand over the discharge deed to you.
- Register the Discharge deed in the same sub-registrar office where the MODT was registered
- Property owner presence is mandatory in sub-registrar office for discharge deed registration. The presence of bank’s representative is not mandatory, (Just the exemption letter suffice)
- If you are not physically present to do discharge deed, you may give power of attoreny. Your POA holder can collect title documents from bank and do discharge deed registration
- Immediately after the Discharge deed registration, extract the latest encumbrance certificate for cross verification, and make sure that bank name is removed from mortgage lien.
In Bangalore, we provide assistance to register the Discharge deed. To opt for our service, please write to us pgnproperties@gmail.com or Whatsapp to +9 1-97424 79020.
Thank you for reading…