WHAT IS MUTATION OF PROPERTY?

What is mutation of property?

Once the buyer has completed the property buying process, which includes signing the sale deed, the buyer must update the records in the land revenue department of the government. “Dakhil Kharij”, as it is known in Hindi, mutation is the process of change of title ownership from one person to another when the said asset is sold or transferred. It has to be done in all the cases of asset transfers such as sale or purchase of property, death of property owner, inheritance, gifts, and purchases made through Power of Attorney. After the process of mutation is completed, the asset is finally registered in the name of the owner in the government records. This enables the government to charge property tax, which varies from state to state.

What are the types mutations?

There are two types of mutations:

First is the mutation of agricultural lands and the second is the mutation of non-agricultural lands. Mutation in the first type is very crucial as without the mutation, the land title cannot be passed to the new owner. In the case of land acquisition, the government will release compensation to the previous owner as the records in the government books were not updated and the new owner will be at a loss. In non-agricultural land mutation, for properties such as independent house, flats, residential plots, failure in updating the records may not take away the rights of new owner. If the owner does not mutate, she won’t be liable to pay electricity, water and municipal taxes.

What is the process of mutation?

Local municipal bodies maintain land and property records. That is where you will have to get the mutation process done. Many states have now shifted the process online and many have even started dedicated system for this. However, the owner will still have to go to the municipality to get the process complete.

The process of mutation-

Submit an application form at the local municipal body with details of the owners such as personal details, property details such as address, registration date, type of property, type of transfer.

Along with the application form, the following  documents will have to be submitted:

1. Copy of sale deed
2. Affidavit on stamp papers
3. Indemnity bond
4. Copy of Aadhaar card
5. Property tax receipts
6. Copy of will/succession certificate/death certificate (in case of inheritance)

Once all the required documents are submitted, the local revenue inspector will verify the documents and may inspect the property after which, the application will be processed.  The process takes 15 days to a month after which mutation certificate is issued. The local civic body may charge a nominal fee of Rs 25 to Rs 100 depending on the state.