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:
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:
If the government acquires the land in question, only those persons whose names have been recorded in the records would be compensated.
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.
Important Things to Keep in Mind
