Real estate investment is a big-ticket proposition. The transactions and documentation are complex but essential. Among the many legal procedures that buyers have to follow, to attain complete ownership of the immovable asset, is mutation. Property mutation in the Government records is one key process that must be done after the registry of the concerned property.
Let us dive deeper and understand the property mutation process.
What is the mutation of the property?
Property Mutation is the process of transferring title ownership from one person to another when an asset is sold or transferred. This also means that the new property owner will pay the requisite property tax from thereon.
In different states, the process has a different nomenclature. In Uttar Pradesh and Bihar, for example, the process is known as Dakhil-Khariz (entry-omission).
Importance of Property Mutation
The mutation of a property is as important as the registration. It helps not only the authorities but also the new owner of the property. Here are a few advantages of mutation records.
- Each state has a record of land/property deals done in the state. These records act as proof of ownership and assist the common man to secure their property investments. Since all the information regarding land records is registered, this reduces the scope for property-related fraud.
- Land and property mutation also helps the state to fix property tax liability.
- Rectification of errors in the land records or reporting unauthorized transactions against your property.
- It helps in the further sale of a newly acquired property as prospective buyers might want to see a mutation certificate.
- In the case of agricultural properties, the sale of land cannot happen without a land mutation certificate.
- It serves as solid proof of property ownership.
Mutation of Property: When is it Done?
- When you buy a property
- When you inherit a property
- When you receive property through a gift or a will
- When you purchase a property through a power of attorney
Click to read more - Investing in Real Estate? 5 Reasons to invest in the 2nd Best city to live in India – Pune
Now you must be thinking about how to apply for mutation of property. Let us discuss
How to apply for property mutation?
Those who buy land or apartments or inherit through a gift will have to get property mutation done.
The Documents required for the mutation of the property include the:
- Application form
- Copy of the sale/title deed
- Affidavit on stamp papers
- Indemnity bond
- Copy of Aadhaar Card
- Property tax receipts
- Copy of will or succession certificate or death certificate of the owner (if applicable)
Municipal bodies that govern your area will get the mutation of your land or property done. Several states have launched online services so you could go online and start the mutation process or visit the Municipal office. However, you would ultimately have to appear in person at the municipal office, to complete the task.
Property mutation fee?
There is a nominal one-time fee that states charge for property and land mutation.
Mutation of the property after death
For mutation of property in such cases, the heir (applicant) will submit the following:
Death Certificate, a copy of the Will, a copy of Succession Certificate, a copy of Power of Attorney (if applicable), an indemnity bond, an affidavit, the latest property tax clearance papers, Registration deed, Sale deed, Aadhar card.
Now that you have applied for property mutation, what is the procedure for the mutation of property?
Property mutation process
- The buyer must appear in the municipal office, along with all the documents.
- Following the submission, the department would conduct physical verification of the property and then, issue the property mutation certificate. In some states such as Bihar, the land mutation process can be completed online.
- Once you submit your application, along with the required documents, it might take the municipal body 15 to 30 days to update the record
- After updating online, the Municipal body would issue a property mutation certificate to you.
In case of land mutation, it will take at least a month for the records to show a change in land ownership.
Also check - All about increased stamp duty and registration charges in Pune 2022
It must be noted that if the request for mutation of the concerned property is not accepted in the first instance, the concerned party can reapply within 30 days of rejection.
To sum it all up, despite not being proof of property ownership, the certificate of mutation of property is a solid document indicating the rights of the property owner. It comes in handy in case of disputes.