A mutation needs to be carried out in all cases of property transfers such as sale or purchase of property, gift, the death of the property owner and even a purchase made through Power of Attorney (PoA).
Following the mutation process, the new owner acquires the title of the property registered in their name in the land revenue department and enables the government to charge property tax. Mutation becomes essential for deciding the tax liability when the property owner is changed.
There are two types of mutations.
1. Mutation of Agricultural lands – Mutation is essential in the case of agricultural lands. The land title cannot be passed to the new owner if the mutation process is not followed. The mutation and the owner’s name should be entered in the revenue records. In the case of land acquisition by the Government, the compensation is granted to only those individuals whose name is registered in the revenue records.
2. Mutation of Non-agricultural lands – In case of non-agricultural lands such as flats, independent houses, residential plots, etc. a failure to mutate does not take away the right in the sale deed. This implies that the purchaser’s title will be unaffected, and they will remain the owner of the property. If the owner does not mutate in these structures, they will not receive electricity and water connection and are not liable to pay the municipal tax.
The documentation procedure for mutation of a property and the applicable fees varies from one State to another. The general process for mutation of a property is –
• Submitting an application – The buyer is required to apply for mutation at the local civic body or revenue office. In the application form, particulars of the owner such as personal details, property address, registration date, type of transfer (if it is a sale deed, a gift, etc.) need to be mentioned.
• Payment of fees– An application fee is required to be paid through Demand Draft. The price may vary from one State to another.
• Enclosing the documents – After the payment of the fee, the required documents along with the application form and demand draft should be attached. Few other documents which are necessary for carrying out the mutation process are –
– A copy of the sale deed
– Indemnity bond and an affidavit
– The current property tax receipt
– A death certificate in case of inheritance or Will
– Copy of Will or succession certificate in case of inheritance
• Processing of application – Once the owner submits all the required documents, the revenue inspector or assessing officer will verify the documents. The officer may also inspect the property and will then process the application. In most cases, a Mutation Certificate is issued after processing the request.
Mutation of the property is documented representing evidence of transfer of property. Irrespective of the change of ownership, the person should also check for mutation with revenue office on time to ensure there is no legal fraud taking place.
There have been times while selling your property, the prospective buyer would have asked for a copy of the latest mutation. Many people do not know the importance of the document hence, let us start with understanding what mutation is?
By mutating a property, the new owner gets the property recorded on his name in the land revenue department and the government is able to charge property tax from the rightful owner. The documentation procedure and the fee payable vary from state to state.
Mutation of a property should ideally be taken every six months from the revenue office in order to check for any wrongful transaction on the property. In the case of inheritance after the death of the owner, the property should be mutated by submitting copies of Death Certificate and relationship documents.
Updation of revenue records should be applied in case the property has been bought through a registered Power of Attorney, as it transfers the ownership from the seller to the buyer.
In case of ownership related to land, the mutation is considered a vital document. For example, if an agricultural land is acquired by the government and the registry of the land is in the name of person A while mutation is in favour of Person B, the government will release the acquisition funds in favour of Person B, as in the revenue records he is recorded as the owner of the land.
To apply for mutation, an application of the area has to be given on a plain paper along with the required value of a non-judicial stamp paper.
