What is the mutation of property?
All properties change hands regularly. Such transfers may be because of the decease of the owner. In another case, the owner might willingly transfer his or her property to someone while he or she is living. The change of ownership needs to be registered and recorded formally in government records because it is the owner of the property responsible for the payment of taxes accruing from the property. Property-tax is an essential source of revenue for the government, so there should be a clear statement about who pays the taxes for a property. This is called mutation of property. This also nullifies the chances of a dispute as to the ownership of a property. You become an owner of your ancestral property only after the property has been mutated in your name. Mere registration of the property is not enough to pronounce you as its owner.
It is an important step taken if you want to dispose of your property at any point in time in the future. When buying a property, it is crucial to check all records of its mutation.
The exact owner of the property should be known. All property-tax due for the property should have been paid before you buy it. There is a nominal fee levied for property mutation. This differs as you move across different states in India.
A formal transfer of property is usually required in three cases:
- When a property is bought
- You inherit property after someone's death
- Someone gifts property to you
- When you buy property on behalf of someone using a Power of Attorney
There is a small fine levied if this transfer is not affected. All property documents should be regularly updated—the exact amount of money to be paid as a penalty differs from state to state.
As India's economy is based on agriculture, the mutation of agricultural land is treated a bit differently from that of non-agricultural property.
- For Agricultural Property, the mutation is mandatory. Unless the mutation process is duly followed, the title deed of the land cannot be passed on to its new owner. Revenue records need to be changed to fix liability for taxation payment. If the government takes over agricultural land for development, its compensation is to be paid to the one whose name appears in the municipal corporation's records.
- For Non-agricultural property like apartments, the mutation is not mandatory. It is merely a legal formality here. The seller doesn't lose rights over the property even if the property isn't mutated.
Documents Required To Effect Property Mutation
A comprehensive list of documents required to enable mutation properly, which differs between different states, but broadly speaking, these documents should be kept in hand:
- Prescribed application form for property mutation complete in all ways
- A copy of the sale deed or title deed
- An affidavit on Stamp-paper
- Indemnity bond
- Copy of Adhaar card
- An entire record of payment of property tax and other taxes
- A copy of the owner's death certificate and his or her will
How To Apply For Mutation Of Property?
For the mutation to occur, the buyer should make a physical appearance in the municipal office along with all these documents and submit them. The property is physically verified by the concerned department of the municipal office. A formal certificate of property mutation is then issued.
How To Apply For Mutation Of Property Online?
Digitization of revenue records has been expedited to make it easier and more convenient for people to update property-records. Municipal corporations find it a lot more efficient and timely to maintain these records. Applicants can apply for property mutation in an online format.
Following steps should be followed if one wants to apply for property mutation online:
- Fill the application form online.
- Upload all documents relevant for property mutation. They are the same as mentioned for an offline procedure.
- Transfer the requisite fee for the purpose through an online payment.
How To Get Mutation Certificate?
Different states have different online forms for this purpose. Using a search engine to find the correct one is suggested.
A document certifying mutation is usually obtained within 48 hours of the completion of this process. A formal certificate is required when it comes to fixing liability for payment of bills accruing from the property. One must produce a valid mutation certificate to apply for water and the power supply.
Properties should be mutated as soon as they are bought or inherited. A delay or denial to mutate creates several uncomfortable issues when and if the property is sold. If property mutation is not done, there is a fine to be levied.
Mutation creates an avenue for legal ownership of a property. It should be opted for as soon as possible.