MODT (Memorandum of Deposit of Title Deeds)

Also known as: memorandum of deposit of title deeds

An MODT is a registered memorandum recording that title deeds have been deposited with a lender to create an equitable mortgage.

Where an MODT is registered, the equitable mortgage becomes visible on the Encumbrance Certificate, which is why some states mandate it. Its cancellation on loan closure must also be registered - an uncancelled MODT on the EC after a loan has been repaid is a common and easily-cured defect that will still stall a subsequent sale or fresh mortgage.

What it proves

That an equitable mortgage was created and, once indexed, that it is discoverable on the EC.