What is Discharge Deed? How to do discharge deed for property mortgage in Karnataka?

The Discharge Deed is issued by lender. Discharge Deed discharges each party from their mortgage obligations. 

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Once the full and final settlement of dues is paid in respect of MEMORANDUM FOR DEPOSIT OF TITLE DEEDS (MODT), the bank will issue following documents, stating that dues have been cleared and request to proceed discharge deed

• No Objection Certificate (NOC)
• Discharge deed
• Title Deed

The NOC looks like the below image on bank’s letterhead

DISCHARGE DEED looks like the below image

TITLE DEED is the list of documents that you handed over to bank at the time of MODT registration, Bank will hand back those documents. TITLE DEED includes registered deed and Khata.

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The next step is to discharge 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 reflects in buyer column 6, we encircled the bank details below

On 22nd March 2016, we paid the full and final settlement of MODT 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

• No Objection Certificate (NOC)
• Discharge deed
• Title deed

Government charges: are paid on K2 website and generated K2 challan. Following are government charges for discharge deed

• Stamp Duty: Rs. 100
• Registration fee: Rs. 200
• Scanning Rs. 300 (approx)

We generated below K2 challan and made the payment through net banking.

On 26th May 2022, we took the following documents to Basavanagudi sub-registrar office for discharge deed registration.

• No Objection Certificate (NOC) issued by bank
• Discharge deed issued by bank
• Aadhar
• K2 Challan

In sub-registrar office, the office verified the above-listed documents and approved for registration. The registering officer asked the property owner to sit at the registration counter, the officer took the biometric thumb impression, photo from webcam, and OTP authenticated.

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 just collect the title documents and don’t do MODT registration. For such cases, just collect back the title documents from bank after clearning the MODT dues. Discharge deed is not applicable.
• The Discharge deed should register 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 to do discharge deed. The presence of bank’s representative is not mandatory to do discharge deed, (Just the NOC from bank is sufficient)
• 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
• K2 challan is valid for 7 days from the day of challan generation hence complete the payment within 7 days. You have options to pay by netbanking, card, UPI, and cash.
• K2 challan is valid for 90 from the day of payment, hence complete the registration within 90 days from the day of challan payment
• 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.

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In Bangalore, we provide assistance to register the Discharge deed. To opt for our service, please Whatsapp to + 9 1 - 9 7 4 2 4 7 9 0 2 0.

Thank you for reading…