What Is Property Mutation & Why Does It Matter?
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 complete 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.
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What Does a Property Mutation Mean?
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. “Property mutation,” or “Dakhil Kharij” in Hindi, is the process of changing title ownership from one person to another when an asset is sold or transferred.
Quick Facts about Property Mutation
Property must be mutate 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 covers in the blog.
- Property mutations take place at the local municipality.
- Online applications are also accepted for the mutation procedure.
- The cost to transfer property varies by state.
- Property registration is not the same as property mutation. 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.
When is a property mutation complete?
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, & purchases made with a power of attorney (PoA), need the completion of a mutation of property. The asset is ultimately registers 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 Kinds of Property Mutations Are There?
There are two main categories into which land mutation or property mutation can be divided:
- Changes in Non-Agricultural Terrain
- Alterations in Arable Land
Alteration 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 the compensation in line with the documentation pertaining to land mutation. The new owner will not receive the 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 mutate does not deny the new owner ownership rights if they are detach apartments, builder floors, homes, or villas.
Municipal taxes, energy, and water bills will continue to be bill in the name of the former owner until the new owner obtains the necessary paperwork in his or her 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 in Property: Advantages
The Government of India has made property mutation 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: A property mutation also acts as evidence of ownership because it modifies the title entry in the revenue records kept by the municipal corporation.
- Permits obtaining 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.
- Protects from penalties for unpaid property taxes: 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.
Supreme Court opinion regarding ownership and property mutation
According to the Supreme Court, a person does not acquire a property right, title, or favour 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 carry 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 Distinguishes Property Registration from Mutation?
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.
The buyer of a property must pay the applicable stamp duty & registration fees to the state’s land & revenue department at the time of sale. Every state has a different registration fee and stamp duty. The property registration process is finishes as soon as the registration fees and stamp duty are paid. Property registration is a more instantaneous process than the mutation. ‘Sale Deed’ creation is a component of property registration.
However, after the property is officially register, property mutation occurs later and may take up to a year. A buyer of real estate is responsible for getting the documents change to reflect their name. For the mutation procedure, the buyer must contact the local department of land and revenue.
How to Apply for a Property Mutation?
The local government in the affected district controls property mutations. 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 physically visit the relevant municipal office.
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 mutation through the E-NagarSewa platform.
Methods for online property status mutation checks
It’s critical to understand how property verification 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.
2nd Step: From the header, select Track Applications.
3rd Step: To continue, click Property Mutation.
4th Step: Type in your registration or acknowledgement number.
5thStep: Click Submit after entering the captcha text.
6th Step: A screen displaying the status of your mutation application will appear.
Which Records Are Necessary for a Property Change?
When a property is being sold, the mutation of the property is typically carried out. Property mutation may become necessary under certain circumstances, such as when a property is inherited when the legal owner passes away.
In the event of a sale, the aforemention paperwork is needed for property mutation:
- Aadhar card of the applicant
- Property tax payment receipt
- Sale deed
- Duly filled land mutation application form
- Stamp paper of the applicable value
- Ration card
- Registration Deed (Both previous and current)
Following the death of the Titleholder or the rightful owner, the following paperwork is needed to change the ownership of the property:
- Applicable Affidavit on Stamp Paper
- Copy of Will (if present)
- Registration Deeds
- Aadhar Card
- Sale Deed
- Copy of the Succession Certificate
- Death Certificate of the Title Holder
- Any additional document that the department specifies
- A copy of the power of attorney, if any
What is a Mutation Certificate Format?
There is no set format for the certificate of mutation because land records management varies from state to state. In spite of this, every mutation certificate includes important details on the relevant attribute, like
- Police Station
- Khatian/Khasra Number
- Plot Number
- Mouza number
- District
- Area of the land
- Name of the concerned party
- The relevant authority’s signature and stamp (usually a Sub-registrar)
The details could change depending on the state.
How Important Are Mutation Records?
A property’s alteration is just as significant as its registration. It benefits the new property owner as well as the authorities. The following is a summary of some advantages of mutation records.
- 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 requires before any land may be sold.
- It is reliable evidence of property ownership.
Alteration of Property: Relevant Fees and Duration
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 anything from five to thirty days.
What Happens If the Property Change Isn’t Completed?
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 encourage by the paltry penalty for non-mutation. It should be emphasize, 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 requires in the event of a subsequent sale.
It should be mention that the interested party may submit another application within 30 days of the initial request for the mutation of the property being denied.
Most Recent Information on Property Mutations
The Mutation Certificate is an essential property document; however, it cannot be use in place of or interchange with the registry. According to the Supreme Court of India, a mutation certificate does not in any manner establish property ownership or grant property rights. The top court stated that the mutation certificate does not in any way confer property rights; rather, it is solely use for revenue records and property tax calculations. According to the Supreme Court, the certificate of mutation serves only financial or administrative objectives. If there is a disagreement between a valid Will and a mutation certificate, the party who was wrong must file a complaint with the court, and the matter will be resolved in accordance with the law.
The Goa government increased the cost of property mutation in a recent update. 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 inherit property. In other situations, though, the cost of changing a property will be determine by its size. Assuming that the property is up to 1,000 square metres, 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 metres are Rs. 2,000. Third, the cost of altering a home will be Rs. 3,500 if its size is between 5,000 and 10,000 square metres. Finally, there will be fees of Rs. 7,500 for houses larger than 10,000 square metres.
Conclusion about Property Mutation
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 regards as a legitimate document in legal issues. The previously drawn-out and laborious procedure has been shortened and made easier by the availability of online Changes in Property 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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