Mutation of property in India

Law
27-Dec-2022
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"Unlike other countries, property dealings are also complex in India. A lot of legal work is required before selling a property, including lengthy document processing, proof verification, and navigating overwhelming legal rules, among other tasks. Additionally, what makes it more challenging is that the rules differ from state to state. While there are numerous ways to transfer property, the Registration process and the process of Mutation remain constant across all states.

From the buyer's perspective, it is crucial to ensure that the property they wish to buy has an undisputable title. Therefore, they should meticulously maintain all property records, which should include prior transaction details and property title information. These records verify that the property's title will be transferred to the buyer's name. Legal documents such as sale deeds, property records, tax receipts, etc., can be used as evidence during the registration process. Mutation, on the other hand, confirms that local authorities have updated all these records.

Mutation is of vital importance as it serves as evidence of ownership, helps determine tax liabilities imposed by the required authorities, and resolves property-related conflicts at the regional level, among other functions."

What is the Mutation of the property?

Mutation, also known as 'Dakhil Kharij' is the way of recording the transfer of the owner's title after selling or transferring the property. After completing the mutation of a property, the same is recorded in the revenue sector of the property, which helps the powers fixate on the liability of the tax.

Mutation of property is not a one-time process. A person needs to complete this process from time to time. One must usually do mutation every six months to clear the property records. To confirm that no dishonest property trades are being involved.

Mutation of property is done during the transfer of ownership from one hand to another.

The Importance of Mutation of Property.

Once your name is registered as the property owner, it is essential to get the mutation of the property done in government records. Let's explore the importance of Mutation through a specific situation.

Rahul Singh wanted to understand the meaning of property mutation. He had completed all the formalities, including stamp paper and registry, while purchasing the property. However, after a year, he learned from one of his coworkers that he hadn't paid the property tax. Curious, he asked his coworker about the process.

The coworker, aware that Rahul had recently purchased a property, inquired, "Have you completed the mutation of the property you recently bought?" Mr. Rahul, clueless about this requirement, replied, "I haven't heard about this before." His coworker, Prateek, explained to him that he must do the mutation of his property at the earliest. By doing so, he could pay the property tax and other charges and ensure his property records are in order.

Getting the mutation of the property is as essential as its registration, benefiting not only the heirs but also the new property owner.

Below are reasons why the mutation of property is important:

  1. The property's mutation document helps the authorities determine the property tax and other impositions applicable to the legal owner of the property.

  2. The property's mutation document is beneficial in correcting any mistakes in the property documents or noting other transactions that are not authorized for the property.

  3. The property's mutation document is valuable for future property sales, as prospective buyers often want to verify the certification.

  4. For agricultural properties, the sale of the land can only be made after completing the mutation documentation.

  5. The mutation document serves as definitive proof of ownership of the property.

Laws that Govern Mutation of Property in India

  • The Codes of revenue of some states control the collection of the revenue. One of the duties of the local government of the city is to keep an eye on the records of the property mutation when required.
  • One could achieve a more precise understanding by following the conditions of the property revenue Code as of 1966. 
  • According to section 154 of the Act, transferring of any documents creating, assigning, and ending has been designed is written under the Indian Registration Act, 1908, and to be made by the registered officer of that village.
  • According to section 150 of the Act, the Talathi must enter in the register of mutations each statement created to him or on any transfer or purchase of the property. Once the process is done, he completes the 7/12 extract and mutation work on 6/12.

Types of Mutation of the Property

Mutation of the property can be generally divided into two types, such as:

Mutation of Agricultural lands:

One should enter mutation in the revenue records. For agricultural land, it is important. In the absence of the mutation, the property's multiple can’t be transferred to the other holder. Must note the owner's name in the revenue records. It is known as 'Pattadhar'. In cases such as the acquisition of a property by the Government, compensation is paid to the one whose name is marked on the revenue records.

Mutation of Non-Agricultural Lands:

In Non-Agricultural lands such as apartments, godowns, houses, storage areas plots, and so on, loss to mutate can’t take a person's sale deed right. The title of the deed will not be affected even if the mutation isn't done. The person will remain the owner of that property. The only problem one can face is that one can’t have a connection to water and electricity, and one may need help paying the municipal tax.

Methods for the mutation of the property

Mutation of the property can be done in the following ways:

1. Sale-purchase of the property:

In case of sale and purchase of the property, the legal papers that should be needed include the sale deed of that property, a slip of the last tax clearance, an application for mutation followed with the stamp fee of the court, and so on.

2. Power of attorney: 

In the case of power of attorney, the documents needed include a Photocopy of a power of attorney, the latest clearance of tax on that property, stamp paper indemnity, and so on.

3. Heritage of property by will/succession:

In the case of Heritage of property, the legal paper requires includes a will's copy, clearance of the tax on that property, a Death certificate copy, followed by the legal paper proving the relationship between the person and the deceased, and so on. the

The cost of stamp paper may vary on numerous conditions.

Documents Required for Mutation of Property:

The Mutation of a property is usually done when the property is being sold. In some instances, the estate of a property or the demise of the lawful property owner makes property mutation binding.

Listed below are the documents required for the Mutation of the property:

  • Sale deed
  • Aadhar card of the person
  • Ration card
  • Stamp paper of the relevant matter
  • Previous and current registration deed.
  • Mutation application form of Duly filled land 
  • Payment receipt of property tax.

If the legal heir of the property is died due to any reason, listed below are the documents that are required for this process:

  • Death Certificate of the owner of the property
  • Registration Acts
  • Sale Deed
  • Aadhar Card
  • Will's copy.
  • Power of Attorney photocopy.
  • Affidavit Application on the Stamp Paper
  • Succession Certificate copy
  • Any other document that the officer has said to bring.

Application Process for Property Mutation in India

The local bodies of the required state rule the property mutation process. In some regions, the mutation process is made online. One must visit the office and get it done, if not the online process.

The local bodies of Bihar have established the Bihar Bhumi portal that regulates the online mutation application. Also, the govt. UP has created the E-Nagar Sewa portal for the process of Mutation of the application online.

  1. The process of giving an application for mutation differs from state to state. One can make a change request by an application form while filling out the court's required fee.
  2. One must duly fill, sign and submit the application to the tehsildar of that office or the required officer of the local government body which holds the property record of the required property.
  3. One can also apply for this application online on the desired registered portals. Many organizations have now advanced towards digitizing their required property and the process of mutation beginning from the stage of its application.
  4. The fees for such an application are generally between Rs. 25- Rs. 100.
  5. After completing and signing the application, one can submit it with all applicable legal papers. After that, the concerned branch will complete the physical verification.
  6. Next, a report is given requesting complaints. If there is any considered complaint filed regarding the suggested mutation setting. Then the contents of the records are then verified with documented statements. If no objection is obtained from the required mutation, it is approved.
  7. After completing all these steps, once the body is satisfied, you'll get your mutation certificate within 15-30 days.
  8. The buyer of the property must confirm that their names are documented and registered in the Tax bill and water charge bill of the property. It is relevant to mention that if any entry is made on their record, one must take the required steps to get the water, and will transfer the tax and water bill.

Conclusion:

Mutation of property is nothing but the updating of the property at that time of transferring ownership from one hand to another. However, the process and the charges of mutation differ from state to state. Still, it follows a simple structure in which you can apply for it by adding some required documents.

Yet it is not an indication of the person's title. It is vital to get the mutation done as it is essential in proving the property's tax liability and for the payment of electricity, water, and other charges. With that, it is important to understand that it is not a one-time process; one must update the document from time to time and generally update it within six months to have clear records of the property. So that one can easily sell their property.

We hope that you get some idea regarding the mutation of the property. If you want more details, you can email us at info@restthecase.com or call us at +919284293610. Our experienced property lawyer will help you and assist you throughout the process.

Frequently Asked Questions

What is the Difference between Registration and Mutation?

When we discuss the Mutation of property, one common thing that strikes our mind is the difference between both terms. Let's look into it:


Mutation

Registeration

MeaningMutation is getting the property updated, in this the new owner is required to pay the desired taxes.Registration of the property is considered to be a full-fledged document agreed upon and signed by both seller and buyer.
OwnershipOnce it is registered in the office of the sub-registrar, the new owner must get the title updated of that property in their name in the local revenue office.The buyer will be considered the property owner when registered in the buyer's name.

What will occur if one doesn’t have the certificate of its property’s mutation in India?

Mutation of property is required for property buyers. If the property is non-agriculture land or the flats and buyers, the mutation of property is a lawful courtesy, and the absence of this doesn't take a person's property.

Can one begin the Mutation process directly after registration?

Yes, one can start the process of Mutation of the property after registering the deed in the office of the Sub Registrar. After that, the precise data regarding the buyer and seller must be reported in the income documents.

What can you do if your application for mutation is rejected?

Suppose your application for mutation of property is refused/rejected for any reason. You can file an appeal in front of the commissioner or the collector in 30 days of the rejection order. Ensure having a legal and experienced lawyer to support you throughout the process.

What is the approximate cost range for property mutation in India?

The mutation cost can range from Rs 25 up to Rs 200. However, it's essential to note that this range is approximate, and the actual cost may differ based on local regulations and government policies

How long does it typically take to obtain the mutation certificate from the municipal bodies for property mutation?

The municipal bodies of the required sections take the mutation ways. One can get this certificate within 5 to 30 days.


Author Bio: Adv. Arunoday Devgan has specialized in Property, Criminal, Civil, Commercial Law, and Arbitration & Mediation since December 2023. He drafts legal documents and represents clients before authorities like the Delhi Real Estate Regulatory Authority and District Courts. Arunoday is also an upcoming author, with a debut book titled "Ignited Legal Minds" scheduled for release in 2024, exploring the nexus between Law and Geopolitical Relations. He has completed the British Council Course, enhancing skills in communication, public speaking, and formal presentations.