Real estate investments are not only expensive, but they also typically require a lot of complicated but necessary documentation. One crucial step that needs to be completed following the registration of the relevant property is land mutation, also known as property mutation in government records. Let’s get into further depth about the mutation of property.
What is the mutation of property?
The procedure of transferring the “Title” to the new property owner is known as a mutation of property. The new property owner will also be responsible for paying the necessary property tax as a result of the property tax mutation. When an asset is sold or transferred, the act of shifting title ownership from one person to another is known as “property mutation,” or “Dakhil Kharij” in Hindi.
Mutation of Property: Quick Facts
Property must be mutated by those who purchase it or inherit it through a gift deed or will. These are some brief facts about property mutation; more information is covered in this blog.
- Property mutations take place at the local municipality.
- Online applications are also accepted for the mutation procedure.
- Each state has a different charge for changing property.
- It also occurs following the completion of property registration.
- When all the paperwork is submitted, it takes about 30 days to issue a new mutation certificate.
Mutation of Property: When is it Done?
Once the buyer has completed the process of purchasing the property, including signing the selling paperwork, they must update the records kept by the government’s Land Revenue Department. The property mutation certificate should ideally be obtained every six months to make sure that the property is free of any mortgages or dishonest activities.
All asset transfers, including sales and acquisitions, death of the property owner, inheritance, gifts, and purchases made with a power of attorney (PoA), need the completion of a mutation of property. The asset is ultimately registered in the owner’s name in government records upon the completion of the mutation procedure. This makes it possible for the government to impose a state-specific property tax.
What are the types of property mutations?
There are two main categories into which land mutations can be divided:
- Mutation of Non-Agricultural land
- Mutation of Agricultural land
Mutation of agricultural land: Altering a parcel of agricultural land is very important since it formally transfers the land title to the new owner. Furthermore, when it comes to land acquisitions, the government pays compensation in line with the documentation pertaining to land mutation. The new owner will not receive compensation if the land was just sold and they haven’t changed the ownership title.
That isn’t the case with residential properties, though. The inability of the properties in question to be mutated does not deny the new owner ownership rights if they are detached apartments, builder floors, homes, or villas.
Municipal taxes, energy, and water bills will continue to be billed in the name of the former owner until the new owner obtains the necessary paperwork in their name. However, since the mutation documents will be necessary to sell the property in the future, it is best to complete the mutation as soon as feasible.
Mutation of Property: Benefits
The Government of India has made it necessary, but it’s important to understand the advantages that come with it. A property owner will have the following advantages when they update their land mutation records:
Ownership of the property: It also acts as evidence of ownership because it modifies the title entry in the revenue records kept by the municipal corporation.
Allows receiving government compensation: A mutation acts as a legal document to get government compensation because it is added to the land records kept by the government. Should the landowner neglect to complete the property’s modification, they will not be qualified for government assistance.
For electricity and water supply: Regarding water and energy provision, residential properties won’t get either till the mutation is finished.
Saves against property tax penalties: The owner is only required to pay property taxes after their property has completely changed. Paying property taxes on time is essential to avoiding severe consequences.
View of Supreme Court on property mutation as ownership
According to the Supreme Court, a person does not acquire a property right, title, or favor by virtue of property mutation. This is a purely financial document. Additionally, the SC stated that a change to a property’s revenue records does not confer any title or presumption of ownership on the property. They were very clear that the sole reason this procedure is carried out is to collect land income. If there is a disagreement over the property’s title, the party asserting the right must go to court to have the rights established before mutation entry can take place.
What is the difference between mutation and property registration?
There is still confusion surrounding the meaning of both operations because the processes of changing a property and registering a property appear to be comparable.
When a property is sold, the buyer is required to pay the state’s land and revenue department the appropriate stamp duty and registration fees. Every state has a different registration fee and stamp duty. The property registration process is finished as soon as the registration fees and stamp duty are paid. Property registration is a more instantaneous process than mutation. ‘Sale Deed’ creation is a component of property registration.
However, after the property is officially registered, property mutation occurs later and may take up to a year. A buyer of real estate is responsible for getting the documents changed to reflect their name. For the mutation procedure, the buyer must contact the local Department of Land and Revenue.
How do I apply for a mutation of property?
The local government in the affected district controls it. The state governments of numerous states have made an effort to move the mutation procedure online. If the online mutation process is not available, you will need to visit the relevant municipal office physically.
The Bihar Bhumi portal, which allows for the online application of the mutation procedure, has been opened by the Bihar government. In a similar vein, the government of Uttar Pradesh has opened applications for online property mutations through the E-NagarSewa platform.
How to check mutation of property status online
It’s critical to understand how it is changing. These days, you may complete it while lounging in your house. Let’s clarify using Uttar Pradesh as an example:
Step 1: Go to the e-NagarSewa portal website.
Step 2: From the header, select Track Applications.
Step 3: To continue, click Property Mutation.
Step 4: Type in your registration or acknowledgment number.
Step 5: Click Submit after entering the captcha text.
Step 6: A screen displaying the status of your mutation application will appear.
Which documents are required for the mutation of property?
When a property is being sold, it is typically carried out. It may become necessary under certain circumstances, such as when a property is inherited and the legal owner passes away.
In the event of a sale, the paperwork above is needed for property mutation:
- The applicant’s Aadhar card
- Receipt for property tax payment on ration card
- Stamp paper with the relevant amount
- Registration deed (past and present) and sale deed
- properly completed application for land mutation
In the case of the death of the lawful owner or the titleholder, the following documents are required:
- Death Certificate of the Title Holder
- Applicable Affidavit on Stamp Paper
- Copy of the Succession Certificate
- Copy of Will (if present)
- Copy of Power of Attorney (if applicable)
- Registration Deeds
- Sale Deed
- Aadhar Card
- Any other document prescribed by the department
What is the format of a mutation certificate?
As the land records management differs across the states, the certificate of mutation does not have a standard format. Despite this, all the mutation certificates contain key information related to the concerned property, such as
- District
- Police Station
- Mouza number
- Khatian/Khasra Number
- Name of the concerned party
- Plot Number
- Area of the land
- Signature and stamp of the concerned authority (Generally a Sub-registrar)
The actual details might differ from state to state.
What is the importance of mutation records?
- A property’s alteration is just as significant as its registration. It benefits the new property owner as well as the authorities. A few benefits of mutation records are listed below.
- The government authorities can charge property taxes and other levies on the legal owner with the assistance of the mutation records.
- When it comes to reporting unauthorized transactions against your property or correcting mistakes in the land records, the mutation records are a great resource.
- It facilitates the subsequent sale of a recently purchased property because potential purchasers may request to view a mutation certificate.
- When it comes to agricultural holdings, a land mutation certificate is required before any land may be sold.
- It is reliable evidence of property ownership.
Mutation of Property: Charges Applicable and Time Taken
States levy different fees because their property mutation processes differ. Nonetheless, the payment process has been simplified by certain governments’ online land mutation application tools. The cost of changing a property might vary from Rs 25 to Rs 200. You can pay the fee online with a debit card, credit card, RTGS, IMPS, UPI, or NEFT, among other methods.
The relevant districts’ municipal bodies are in charge of the mutation procedures. Obtaining the mutation certificate from the authorities can take anywhere from five to thirty days.
What if the property mutation is not done?
Property registration and stamp duty payments always take precedence over property mutations in terms of precedence. Even if buyers register a property as soon as it is sold, the mutation is frequently overlooked. Additionally, the property buyers are further encouraged by the paltry penalty for non-mutation. It should be emphasized, therefore, that it is preferable to proceed with property mutation as soon as feasible following the real sale transaction. In the event of a legal dispute, it not only supports the claim to the property but is also required in the event of a subsequent sale.
Note that the interested party may reapply within 30 days after the initial request for the modification of the subject property is denied.
Latest Update on Mutation of Property
Property registration and stamp duty payments always take precedence over property mutations in terms of precedence. Even if buyers register a property as soon as it is sold, the mutation is frequently overlooked. Additionally, the property buyers are further encouraged by the paltry penalty for non-mutation. It should be emphasized, therefore, that it is preferable to proceed with property mutation as soon as feasible following the real sale transaction. In the event of a legal dispute, it not only supports the claim to the property but is also required in the event of a subsequent sale.
Note that the interested party may reapply within 30 days after the initial request for the modification of the subject property is denied, according to the law.
In a recent update, the Goa government increased the cost of property mutation. The previous property mutation fees ranged from Rs. 1,000 to Rs. 5,000. Regardless of the size of the property, there will be a 1,000 rupee fee for any changes made to an inherited property. In other situations, though, the cost of changing a property will be determined by its size. Assuming that the property is up to 1,000 square meters, the change in property taxes is set at 1,500 rupees. The fees for properties ranging in size from 1,000 to 5,000 square meters are Rs. 2,000. Third, if the area of the land is between 5,000 and 10,000 square meters, the property mutation will be Rs. 3,500; lastly, for properties bigger than 10,000 sq. M the charges will be Rs. 7,500.
Concluding on Mutation of Property
In conclusion, the certificate of mutation of property is a reliable document outlining the rights of the property owner, even though it does not serve as evidence of property ownership. It can be regarded as a legitimate document in legal matters. The previously drawn-out and laborious procedure has been shortened and made easier by the availability of online property mutation applications. In this context, it is relevant to note the National Generic Documents Registration System (NGDRS). The goal of NGDRS is to digitize land records management procedures throughout India, and state governments are progressively implementing it.
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