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All You Should Know About Property Mutation       

All You Should Know About Property Mutation       

All You Should Know About Property Mutation       
Mutation papers ensure property tax is being paid by the rightful owner. (Jagmohan Rawat)

Mutation of a property, also referred as Dakhil Kharij in Hindi, is the transfer or change of ownership title from one person to another in the revenue records of the local municipal authority.

However, buyers must be mindful of the fact that mutation entries do not confer property title on a person. This has been reiterated by India's top court on several occasions. While refusing to entertain a plea of the Bruhat Bengaluru Mahanagara Palike in January 2021, the Supreme Court confirmed that an owner cannot rely solely on mutation entries, to prove his ownership over an asset. They will have to do so independently, as well. The top court also observed that mutation entries of revenue records did not create or extinguish title over the land. Such entries, it said, did not have any presumptive value on the title of such land. 

 

MakaanIQ tells you why this is important:

What is property mutation?

A change in ownership may be inevitable in cases involving inheritance, property will, sale-purchase, death of the current owner, or through any government settlement. The local municipal body of any city or district, through its revenue department, is responsible for maintaining a comprehensive record of property ownership and transfers. It enables the authority to fix property tax payment liabilities and issues proper tax documents. Filing for mutation of a property is a crucial process during property buying. This is important so that all the receipts for property tax and utility bills are generated in the name of the new buyer instead of the previous owner.

Property mutation is not a one-time responsibility. It is crucial to regularly track the details regarding mutation and update the papers from time to time. This will safeguard your property records from any frauds.

How to apply for property mutation?

Before applying for mutation of a property, it is important to have the necessary documentation in place. The documents may vary from state to state. Request for the change in official records is done through an application form with court fee stamp (a fee of Rs 3 in Delhi). The form must be duly filled, signed and submitted with the Commissioner of the Revenue Department. In addition, the following documents should be furnished:

  • The latest receipt of property tax payment
  • The attested copy of sale deed
  • The no-objection certificate from the housing society
  • An indemnity bond on stamp paper of requisite value (Rs 100 in Delhi)
  • An affidavit on stamp paper of requisite value (Rs 10 in Delhi), attested by the notary

 In the case of inherited property, the following documents must be produced:

  • A copy of will or succession certificate or death certificate of the owner
  • An indemnity bond on stamp paper of requisite value (Rs 100 in Delhi)
  • An affidavit on stamp paper of requisite value (Rs 10 in Delhi), attested by the notary
  • The latest receipt of property tax payment

In property purchase through a registered power of attorney, the following documents must be produced:

  • A copy of Power of Attorney papers
  • A copy of the will
  • Receipt of payment registered with a sub-registrar
  • An indemnity bond on stamp paper of requisite value (Rs 100 in Delhi)
  • An affidavit on stamp paper of requisite value (Rs 10 in Delhi), attested by the notary
  • Latest receipt of property tax payment

The application is then verified, and the process is initiated and completed within 15 to 30 days.

Some facts about property mutation

Types of mutation: There are two types of mutation namely Mutation of Agricultural lands and Mutation of Non-Agricultural Lands which include apartments, residential plots, godowns, etc. The mutation for the former is mandatory without which land title cannot be passed to the new owner. It is not legally binding in the latter case but should be done to protect ownership rights and avoid hassles while selling your asset.

Online process: Many municipal corporations are now moving towards digitalising all existing land records including the process of mutation. In fact, Andhra Pradesh plans to integrate the Registration and Revenue departments which will facilitate the automatic update of revenue records (mutation) as soon as property registration is done.

Charges: Property mutation charges may differ from state to state.

Penalty: There is a minimal penalty of Rs 25 if the mutation of the property is not done.

Last Updated: Wed Nov 10 2021

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@@Wed May 13 2020 19:59:51