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What is mutation of property and why is it important?

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Among the many legal procedures that buyers have to follow, to attain complete ownership of the immovable asset, is mutation. In this article, we explain what mutation is, how it is carried out and why completing the process is important

A new property owner or the land buyer has to follow several procedures, to obtain complete legal ownership of the immovable asset. Property mutation or land mutation is one such step. In this article, we would talk about the nitty-gritty of the property mutation process, to have a clear understanding of it.

What is a mutation of property/land?

The land is a state subject and each state has a record of land/property deals. These records act as proof of ownership and help the common man to keep their property investments safe. As all the information regarding land records are registered, this reduces the scope for property-related frauds. Now, once a buyer completes the land-buying process, the responsibility to get the new information registered in the revenue records arises. Land and property mutation also helps the state to fix property tax liability.

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).

When does the need for property mutation arise?

  • The need for initiating the property mutation arises
  • 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

Who has to get property mutation done?

Those who buy land or apartments or inherit the same through a will or gift deed, have to get property mutation done.

Land mutation

It must be noted that in the case of a land buyer, property mutation is compulsory because without getting this done, the transfer of ownership will not be complete. It must be stated here that while land mutation is not legally binding on the land buyer, they must get it done within 3-6 months of the land purchase so that the government records are updated and there are no confusions with regard to the change of land ownership.

Apartment mutation

For buyers of flats and apartments, the transfer of ownership takes place as soon as the property’s registration is done; mutation is more of a legal formality, which can be completed any time after the transaction. However, one would have to show the mutation documents, if one were to sell the property in the future. These documents may also be required while applying for utilities such as power and water services.

How to apply for mutation of land/property?

Municipal bodies that govern your area maintain land records and that is where you have to get the mutation of your land or property done. While you could go online and start the mutation process, since several states have launched services on that front, you would ultimately have to appear in person at the municipal office, to complete the task.

In Bihar, landowners can get the land mutation done online. States such as West Bengal have launched plans to make the process completely online but the process has not yet been completed.

What documents are required for mutation of property?

While documents required to complete the mutation process might vary from state to state, a buyer would have to submit the following:

  • Correctly filled property mutation 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)

What is the property mutation fee?

There is a nominal fee that states charge for property and land mutation. This may vary between Rs 25 and Rs 100, depending on the state. Also, note that this nominal charge is just a one-time duty.

How is property mutation done?

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.

How much time does it take to complete property mutation?

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 which it 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.

Is there a time limit for the buyer to complete property mutation?

While buyers of land must immediately complete the mutation process, buyers of flats and apartments can get it done according to their convenience. However, the job must be done as early as possible, to keep your property documents in order.

What if property mutation is not completed?

Since the penalty is not very high (states typically charge Rs 25 to Rs 100 as the penalty for delays) and one is free to get the property mutation done as and when they find it convenient to do so, buyers often continue to postpone the process. However, it is advised that the property mutation process be completed as soon as all the other tasks pertaining to the purchase are complete. You would need proof of the mutation when you plan to sell the property in the future. Even otherwise, it is legally much safer if a property mutation is done immediately after the purchase, from the point of view of the transfer of ownership.

Source – https://housing.com/news/what-is-mutation-of-property-and-why-is-it-important/

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