The rule was implemented as a part of Phase II of the “Anywhere Registration” initiative under Project STAR 3.0.

What Is an MODT?

When a person takes a property-backed loan, the original title documents are usually deposited with the bank as security. A Memorandum of Deposit of Title Deeds, commonly called an MODT, officially records that the property has been offered as security for the loan.

The registered MODT creates a public record of the lender’s mortgage interest and should appear in the property’s Encumbrance Certificate (EC).

For a separate step-by-step explanation of the process, read our complete guide to registering a mortgage without possession online in Tamil Nadu.

What Is a Deed of Receipt?

A Deed of Receipt is registered after the borrower fully repays the secured loan. It records that the bank has received the outstanding amount and that the mortgage liability has been released.

Loan repayment alone may not remove the mortgage entry from the EC. The bank must complete the required release documentation and register the Deed of Receipt.

For the complete procedure, read our step-by-step guide to the presence-less online registration of Deposit of Title Deeds (MODT) in Tamil Nadu.

The Online Update

Earlier, borrowers and bank representatives could be required to visit the Sub-Registrar Office to register these documents. Under the new system, banks and financial institutions must submit them electronically without requiring a physical visit for registration.

Registered documents will include:

• The registering authority’s digital signature
• A QR code on every page
• Digital verification and document storage
• An electronic record of the mortgage transaction

However, presence-less registration does not mean that original title deeds become entirely digital. Banks may still physically hold the original property documents until the loan is closed.

Why Is This Important for Property Buyers?

One purpose of the new rule is to ensure that registered mortgages are properly reflected in Encumbrance Certificates. This can help buyers and banks identify whether a property is already mortgaged and reduce the risk of the same property being offered as security to multiple lenders.

After a loan is closed, property owners should:

• ✅Collect the loan-closure letter or no-dues certificate.
• ✅Obtain all original title documents from the bank.
• ✅Confirm that the Deed of Receipt has been registered.
• ✅Download a fresh EC and check whether the mortgage release is recorded.
• ✅Verify the document number, survey number and property description.

Check the EC Before Buying

An EC is an important part of property verification, but it is not complete proof of ownership. Buyers must also verify the title documents, ownership chain, pending loans, court disputes and property particulars.

The Verified.RealEstate EC Analyzer can help users examine an Encumbrance Certificate and understand important entries, including registered mortgages and release documents. It should be followed by proper legal and title due diligence before purchasing the property.

The Key Takeaway

Tamil Nadu’s new online-registration rule can make mortgage registration faster, more traceable and easier to verify. For owners, the most important step is to ensure that both the MODT and the later Deed of Receipt are correctly reflected in the EC. Otherwise, a repaid loan may continue to appear as an unresolved mortgage during a future sale or loan application.

Disclaimer: This article provides general information based on the registration update effective from 15 September 2026. Procedures may vary depending on the lender and transaction. Property owners and buyers should confirm the latest requirements with the concerned bank, Registration Department or a qualified legal professional.

Under Phase I, eligible documents can be submitted online through the Registration Department’s STAR platform. Buyers, builders, promoters and witnesses need not visit the Sub-Registrar Office during the online registration process.

The facility is available 24 hours a day, seven days a week and throughout the year.

Authorized users include the general public, construction companies, document writers, banks, and lawyers, who can carry out document registration online.

Which Property Transactions Are Covered?

Phase I makes online registration mandatory for:

• The first sale of a plot by a promoter or developer
• The first sale of a flat or apartment by a builder
• The connected Deposit of Title Deeds when the purchase is financed through a bank loan

Government sale documents and certain banking documents, including mortgage and receipt deeds, are also supported under the presenceless registration system, subject to their eligibility conditions.

What Is the First Sale of a Plot?

The first sale of a plot happens when a promoter or developer sells a newly formed plot directly to its first buyer.

For example, when a developer creates an approved layout and sells one of its plots to an individual, it is the first sale of that plot.

If the first buyer later sells the same plot to another person, it becomes a resale. That subsequent sale is not treated as a first sale under this Phase I category.

Read about the step step by guide to register : https://community.verified.realestate/article/tamil-nadu-presenceless-sale-deed-eligibility-and-step-by-step-online-registration/

What Is the First Sale of a Flat?

The first sale of a flat happens when a builder sells a newly constructed apartment directly to its first buyer.

If that buyer later sells the apartment to another person, it becomes a resale and does not fall under the mandatory first-sale category.

Therefore, “first sale” refers to the property’s first transfer from the builder or promoter. It does not mean that the buyer must be purchasing property for the first time in their life.

How Does Presenceless Registration Work?

The applicant must create a citizen login on the Registration Department portal and choose the eligible document under:

Registration → Document Registration → Presenceless Registration

The property, parties, witnesses and supporting-document details must then be entered online.

Aadhaar is the default and mandatory identity proof for the applicable buyers, sellers, executing parties and witnesses. Their photographs must be captured digitally, and their identities must be verified through UIDAI using fingerprints or iris scans.

Stamp duty and registration fees must also be paid online.

Equipment Required for Online Registration

The applicant needs:

• A stable, high-speed internet connection
• A UIDAI-registered fingerprint or iris device
• A webcam for capturing photographs
• Supporting software listed on the portal

The manuals show devices such as:

• Mantra MFS100/MFS500
• Mantra MFS110
• Mantra IRIS Sensor MIS100V2
• Webcam

Users should confirm that the device is currently supported by UIDAI and the Registration Department portal before starting the process.

When Is the Document Treated as Submitted?

The document is considered successfully submitted only after:

• Aadhaar fingerprint or iris verification is completed
• Supporting documents are uploaded
• The portal-generated document is printed and checked
• Stamp duty and registration fees are paid online

Applicants must carefully verify the portal-generated PDF before making payment.

Details can generally be changed only before Aadhaar authentication. Once e-payment is completed, the status changes to “Submitted Online”, and the document or Temporary Presentation number cannot be edited or modified.

The document then moves to the Registration Department’s back office or the concerned Sub-Registrar Office for verification and registration.

What If Biometric Verification Fails?

The photographs, fingerprints or iris scans of the applicable parties and witnesses must be successfully validated through UIDAI.

If biometric or iris verification fails for even one required party, the document cannot continue through the online presenceless route. The applicant must use the normal registration procedure.

What If the Sub-Registrar Requires Clarification?

The Sub-Registrar will verify the document under the existing registration laws and procedures.

If any clarification or correction is required, the document may be returned online. The applicant can correct the issue and resubmit it within 30 days from the date on which it was returned.

The digitally signed registered document should normally be issued on the same day or the next working day, depending on verification and whether any clarification is required.

What Happens When a Bank Loan Is Involved?

When a bank finances the purchase, two connected legal steps may be involved.

The sale deed transfers and registers ownership of the plot or apartment in the buyer’s name.

The buyer then deposits the property’s title documents with the bank as security for the housing loan. A Memorandum of Deposit of Title Deeds, commonly called an MODT, officially records the bank’s security interest over the property.

The buyer remains the property owner, but the bank holds a legal claim over the property until the loan is fully repaid.

The eligible sale deed and its connected Deposit of Title Deeds can be processed through the online system without repeated visits by the buyer, builder and bank representatives to the registration office.

Read about the process step step guide on https://community.verified.realestate/article/presenceless-deposit-of-title-deeds-in-tamil-nadu-complete-online-registration-guide/

and in https://community.verified.realestate/article/presenceless-mortgage-without-possession-complete-online-process-explained/

What Happens After the Loan Is Repaid?

After the borrower completely repays the loan, the bank must confirm that it has received the full amount and released its claim over the property.

This is recorded through a receipt deed, discharge document or mortgage release document, depending on the transaction.

The presenceless registration system also supports eligible mortgage and receipt documents, allowing connected banking formalities to be completed online.

In this scenario, how to get the receipt done ? Read about it in https://community.verified.realestate/article/home-loan-fully-repaid-how-banks-can-register-the-receipt-deed-online-through-anywhere-registration/

Downloading the Registered Document

Once registration is completed, the Sub-Registrar digitally signs the document and makes it available through the citizen login.

The registered document:

• Can be downloaded free of charge for 30 – 60 days
• Must be printed in colour on legal-size paper
• Can be downloaded as many times as required during the permitted period
• Should be saved securely by the buyer

After 60 days, the citizen must apply to the Registration Department for a certified copy. The certified copy will be issued only in black and white.

To avoid any risk, buyers should download, save and take a colour printout of the registered document immediately after registration.

Expert Support for a Hassle-Free Transaction

Online registration still requires correct property details, supporting records, Aadhaar authentication, compatible biometric equipment, document preparation and banking coordination.

Verified.RealEstate can support buyers through the complete process, including property-document verification, online application preparation, biometric equipment arrangements, sale deed registration and coordination for MODT and other banking documents.

The team can also check the portal-generated document before payment, help avoid incorrect entries and coordinate with the builder, bank and other parties for a smoother transaction.

Anywhere Registration may remove the need for office visits, but it does not remove the need for proper legal checks. Buyers must still verify the property title, approvals, encumbrances, developer’s authority and loan conditions before completing registration.