Unlike in Western nations, real estate transactions in India are time-consuming. Before a sale is finalized, there is a lot of paperwork to be completed, verification checks to be performed, and many legal regulations to be followed, among other things. Well, the fact that such restrictions differ from state to state adds to the anguish. Amid such formalities, getting the mutation of the bought property done in official documents is something that a lot of individuals overlook.
From a buyer’s perspective, the property we wish to purchase must have a clear and indisputable title. The buyer is responsible for verifying the property’s title. It necessitates well-maintained land records/municipal records in which all previous property title transactions are correctly recorded. The provided mutation may be carried out with care. We’ll go through the essential points of the property mutation process in this article so you can have a better understanding of it.
What Does Property Mutation Mean?
When a property is sold, the title ownership must be transferred from the previous owner to the new owner. The mutation is the term for this procedure. When a property is mutated, the new owner is allowed to record the property in his or her own name, allowing the government and the land revenue department to collect property taxes from the rightful owner. As a result, you’ll need to change your property records if you’re buying a house.
The meaning of property mutation- after your property has been mutated, you may seamlessly pay your property tax, avoiding any interest or penalties that may be imposed later. In Hindi, property mutation is referred to as Dakhil-Kharij.
Why is Property Mutation Important?
Property ownership transfer records are kept by a city’s municipal authority to determine property tax obligations. As a result, property mutation aids the government in determining the taxpayers’ accountability.
The process is also beneficial to the homeowner. You will be able to not only pay your property tax after the mutation, but you will also be able to sell your property in the future. It will lessen the likelihood of you losing a potential buyer because he or she will almost certainly request the mutation paperwork.
When it comes to land ownership, a mutation is considered a crucial document. For example, if the government acquires agricultural property and the land register is in the name of Person A but the mutation is in the name of Person B, the government will transfer the purchase funds to Person B since he is listed as the property’s owner in the revenue records.
Property mutation is thus a mandatory formality for people who acquire property in whatever fashion, and it should be completed as soon as possible to avoid any future issues for the property owner.
When is Property Mutation Required?
When there is a change in ownership caused by one of the following factors, the mutation is necessary:
- Property purchase/sale
- Property inheritance following the death of the true owner
- Purchased property through Power of Attorney
- Transfer of property in any other way, such as a gift
- Part of Government Settlement
Registration vs. Mutation: What’s the Difference?
The process of obtaining the title of ownership of land officially transferred in the name of the buyer is known as registration. Mutation, on the other hand, occurs after the registration procedure. Having a piece of property mutated indicates that the registration has been properly documented in the revenue records.
The main difference between Mutation and Registration- While registration confers ownership and serves as a confirmation of such ownership, it does not do so in the context of mutation.
Case Study for Reference
For example, the Supreme Court declared in Sawarni (Smt.) Vs. Inder Kaur case (1996) that a property’s mutation in the revenue record neither creates nor extinguishes title nor does it have any presumption value on the title. It only allows the person whose mutation has been ordered to pay the land revenue in question to do so.
The same principle was affirmed in the instances of Balwant Singh & Anr. Vs. Daulat Singh (dead) and Narasamma & Ors. Vs. State of Karnataka & Ors (2009).
As a result, it may be inferred that the mutation entries are purely for revenue purposes, ensuring that the land’s taxes and revenues are paid on time and without failure.
Lastly, property registration is legally binding, however, the mutation is not.
Certain states, such as Andhra Pradesh, are intending to merge the Registration and Revenue departments so that land records are instantly updated in the Revenue Department (mutation) as soon as a property is registered at the Registration Office.
Types of Mutation
There are two kinds of mutation:
- 1. Agricultural Land Mutation — Agricultural lands, unlike non-agricultural lands, are subject to mutation, which has an impact on the land’s title of ownership. Until and unless the mutation procedure has been completed and registered in the revenue records, the transfer of ownership will not be considered legitimate.
If the government acquires the land in question, only those persons whose names have been recorded in the records would be compensated.
- Non-agricultural land mutation — In this situation, the non-agricultural land mutation will not change the property’s title, but it will most likely influence the owner’s duty to pay municipal taxes and may even interfere with their water supply and power connection. Single-family homes, apartments, residential complexes, and other non-agricultural areas are examples.
How to apply for property mutation?
The process for changing a property’s ownership differs by state. An application form with a court fee stamp can be used to request a change. The form must be completed, signed, and sent to the tehsildar or the individual in charge of the local Municipal authority that keeps track of the property’s land records.
Alternatively, an online application for the mutation can be made on the various State Government sites. Many municipal corporations have now moved toward digitization of existing land records and the mutation procedure itself, beginning with the application stage. Fees for such an application often range from ₹25 to ₹100.
The department would perform a physical verification of the property after receiving the application and all necessary documentation.
Then a proclamation is issued, asking for any objections to the proposed mutation and providing a deadline (usually 15 days from the date of the proclamation) for any objections to be considered.
Parties’ remarks are also recorded. The contents of the documentation are compared to the statements that have been recorded. The proposed mutation is sanctioned if no objections are submitted.
Once all of these requirements are met, the municipal authority may take 15 to 30 days to update the record, after which you will obtain the mutation certificate.
The property purchasers should make certain that their names are registered and documented on the Property Tax and Water Charges bills. It’s important to remember that after the entry is made in the Municipal Body’s (City Survey) records, the Property Tax Bill and Water Charges Bill should be changed as well.
Documents Needed for Property Mutation
The documentation that must be provided varies depending on the reason for the property transfer.
- The following documentation must be provided if a property has been purchased:
- A certified copy of the sales deed, attested
- Receipts for the most recent property tax payments
- A ₹100 stamp paper indemnity bond
- An affidavit on a ₹10 stamp paper
- The following documentation must be provided if the property was inherited by a successor after the owner’s death:
- The owner’s death certificate,
- A copy of the will or the certificate of succession
- A ₹100 stamp paper indemnity bond
- A notary-attested affidavit on ₹10 stamp paper
- Receipts for the most recent property tax payments
- The following documents must be provided if the property was acquired through a Power of Attorney (POA) holder:
- A copy of the documents granting power of attorney
- A copy of the will
- Payment receipt, which is registered with the sub-registrar
- A ₹100 stamp paper indemnity bond
- A notary-attested affidavit on ₹10 stamp paper
- Receipts for the most recent property tax payments
Important Things to Keep in Mind
- The process for getting the property registered in the new buyer’s name differs by state, but it generally involves submitting an application to the concerned officer (tehsildar) at the local municipal authority, along with the documentation listed above (death certificate/sale deed/ Power of Attorney papers (a copy), proof of tax payment, etc.)
- It’s worth noting that if you don’t have your property changed, you’ll be fined with a very small penalty – as little as ₹25 in some cases. You may also complete the task whenever it is convenient for you. If you intend to sell your home in the future, purchasers will almost certainly demand that you present the mutation paperwork. Your ability to sell your assets may be compromised if you don’t have them in place.
- The procedure includes soliciting objections and conducting physical inspections of the property, after which, if the body is pleased, the mutation certificate will be issued within 15 to 30 days.
- Though not legally binding, property mutation is significant since it serves as a tax record.
- The property mutation charge varies as per state. And, in most situations, they fall inside the previously indicated range.
- If the land is owned jointly, a mutation might be issued in the name of all co-owners.
- It’s also important to remember that this isn’t a one-time operation and that updating the records every six months is required to verify that no unjust or malafide transactions have happened with the property and that no problems arise when the property is sold at a later period. Your property records will remain clean if you update them regularly.
- To prevent legal implications later on and to ensure that all legal requirements are followed, it is always important to seek legal advice from a lawyer before completing any property transfer. Lawyers can offer legal advice and help in the event of a mutation or for cross-checking revenue data in the event of a property acquisition or sale.
- You must apply for an Encumbrance Certificate if you want to see if a property has free title/ownership (or) whether it is mortgaged. A Mutation Extract can be used to double-check these ownership facts. (A mutation extract is an extract from the Village Panchayat Accountant’s or local civic body office’s mutation registry. It documents the transfer of land and the form of transfer, as well as the suggestions of the inquiry/Assessing Officer, the date of entry of the transfer, and the record of rights.)
