What is memorandum of deposit?

memorandum of deposit. noun [ C ] FINANCE. us. a written agreement between a person or company that borrows money and the bank lending the money in which the borrower promises to give the bank shares they own and have left with the bank, if they fail to pay back the loan.

What happens if you sell a house with a mortgage?

When you sell your home, the buyer’s funds pay your mortgage lender and cover transaction costs. The remaining amount becomes your profit. Your loan is repaid to your mortgage lender. Any additional loans (like a HELOC or home equity loan) are paid off.

Can you transfer your home loan to another person?

You can transfer a mortgage to another person if the terms of your mortgage say that it is “assumable.” If you have an assumable mortgage, the new borrower can pay a flat fee to take over the existing mortgage and become responsible for payment. But they’ll still typically need to qualify for the loan with your lender.

How do you remove a Memorandum of deposit deeds?

Steps to cancel a MODT It is the responsibility of the lender to cancel the MODT once debts are cleared. Ask your lender to cancel the MODT and issue a ‘Deed of Receipt’. Visit the Sub-Registrar Office with the NOC. Get the lien removed from the property.

In what case the Memorandum of deposit has to be registered?

If an agreement is executed or signed between the mortgagor and the mortgagee, it has to be compulsorily registered. The usual time limit for registration is four months from the date of execution. If such an agreement is not executed, then the mortgagor has to file a notice of intimation of such a mortgage.

Can demand draft be faked?

The police have recovered 25 fake DDs with a total face value of ₹7.18 crore, printers used to make them, and fake seals from the arrested persons. They also recovered an original DD for the amount of ₹349 from Bank of India, based on which they attempted to forge duplicates.