How to apply for mutation of property?

Mutation of property is a crucial legal process in India that involves updating the ownership details of a property in the land revenue records. This process is necessary when there is a change in ownership due to sale, inheritance, gift, or any other form of property transfer. Mutation ensures that the property records are up-to-date, reflecting the current owner. Here’s a detailed guide on how to apply for the mutation of property, including the necessary documents, procedure, fees, and legal implications.

What is Mutation of Property?

Mutation is the process of recording the change in ownership of a property in the local municipal or revenue records. These records are essential for the assessment of property tax and establishing ownership rights. It is important to note that mutation does not confer legal title to the property but is an essential step for property tax purposes and maintaining updated land records.

Situations When Mutation is Required

Mutation is required in the following situations:

Sale of Property: When a property is sold, the buyer needs to apply for mutation to record their name in the municipal or revenue records.
Inheritance: After the death of the property owner, legal heirs must apply for mutation to have the property registered in their names.
Gift: When a property is transferred as a gift, the recipient must apply for mutation to update the ownership records.
Will: In cases where the property is bequeathed through a will, the beneficiary must apply for mutation to reflect the change in ownership.
Partition: After a property is partitioned among co-owners, each owner must apply for mutation of their respective shares.

Importance of Mutation

Mutation is significant for several reasons:

Property Tax Assessment: Mutation allows the municipal authority to assess property taxes correctly based on the current ownership.
Legal Recognition: Though mutation does not confer legal title, it serves as a record of ownership and can be important in legal disputes or transactions.
Utility Services: Mutation is often required to update the ownership details for utility services like water, electricity, and gas connections.

Documents Required for Mutation of Property

The documents required for mutation may vary depending on the reason for the mutation (sale, inheritance, etc.) and the local authority’s requirements. However, the commonly required documents include:

Sale Deed: If the mutation is being applied due to the sale of property, a copy of the registered sale deed is required.
Death Certificate: In the case of inheritance, the death certificate of the previous owner is needed.
Will or Succession Certificate: If the mutation is due to inheritance, a copy of the will or a succession certificate is required.
Affidavit: An affidavit declaring the change in ownership and the basis for mutation.
Property Tax Receipts: Copies of the latest property tax receipts.
NOC from Cooperative Housing Society: If applicable, a No Objection Certificate (NOC) from the housing society or residents’ welfare association.
Indemnity Bond: Some authorities may require an indemnity bond to indemnify them against any future disputes related to the mutation.
Application Form: The prescribed mutation application form, duly filled and signed.
Identity Proof: Copies of the identity and address proof of the applicant (e.g., Aadhar card, PAN card, voter ID).

Procedure to Apply for Mutation of Property

The procedure to apply for the mutation of property may differ slightly from one state to another, but the general steps are as follows:

1. Visit the Concerned Authority:

The first step is to visit the office of the local municipal corporation, municipal council, or revenue department where the property is located. Some states also offer online services for mutation applications through their official portals.

2. Obtain the Application Form:

Obtain the prescribed application form for mutation from the concerned authority or download it from the official website if available.

3. Fill in the Application Form:

Fill in the application form with the necessary details, such as the name of the applicant, property details, reason for mutation, and contact information.

4. Attach the Required Documents:

Attach all the necessary documents, such as the sale deed, death certificate, will, NOC, and property tax receipts, as applicable.

5. Submit the Application:

Submit the completed application form along with the attached documents to the concerned authority. Ensure that you obtain an acknowledgment receipt for future reference.

6. Verification Process:

After submission, the municipal or revenue authorities will conduct a verification process. This may include physical inspection of the property and verification of the documents submitted.

7. Public Notice:

In some cases, the authority may issue a public notice in local newspapers or on its notice board, inviting objections from the public within a specified period (usually 15 to 30 days).

8. Payment of Fees:

Pay the prescribed mutation fee. The fee amount varies depending on the location and value of the property. The payment can usually be made through cash, demand draft, or online, depending on the authority’s provisions.

9. Issuance of Mutation Certificate:

If no objections are raised or if the objections are resolved, the authority will update the ownership details in the property records and issue a mutation certificate. This certificate serves as proof that the mutation has been completed.

10. Update in Property Tax Records:

The mutation will also be updated in the property tax records, and future property tax bills will be issued in the name of the new owner.

Time Frame for Mutation

The time frame for completing the mutation process varies depending on the local authority and the complexity of the case. Generally, it takes about 15 to 30 days for the mutation to be processed. However, delays can occur if there are objections or discrepancies in the documentation.

Fees for Mutation of Property

The fees for mutation vary from state to state and may depend on factors such as the value of the property and the reason for the mutation. The fee structure is usually available at the municipal or revenue office or on the official website. Some common types of fees include:

Mutation Fee: A nominal fee charged for processing the mutation application.
Notice Fee: If a public notice is issued, there may be an additional fee for publishing the notice.
Document Verification Fee: Some authorities charge a fee for verifying the documents submitted with the application.

Legal Implications of Not Mutating Property

Failure to mutate a property can lead to several legal and financial complications:

Disputes Over Ownership: If the mutation is not done, the seller’s name will continue to appear in the municipal records, which could lead to disputes over ownership, especially if the seller passes away or if the property is sold again.
Inability to Sell the Property: Without mutation, the new owner may face difficulties in selling the property in the future, as potential buyers may insist on seeing updated ownership records.
Liability for Previous Owner’s Debts: If the property is not mutated, the new owner may still be held liable for any unpaid property taxes or liabilities incurred by the previous owner.
Legal Challenges: In case of inheritance, if the mutation is not done, other legal heirs may challenge the ownership, leading to prolonged legal battles.

Additional FAQs on Mutation of Property

Q1: Can mutation be done online?

Yes, in many states, the mutation process can be initiated online through the official portal of the respective municipal corporation or revenue department. However, the availability of online services varies by state.

Q2: Is it mandatory to mutate the property immediately after purchase?

While it is not legally mandatory to mutate the property immediately after purchase, it is advisable to do so as soon as possible to avoid complications related to property tax and ownership disputes.

Q3: What happens if there is an objection to the mutation application?

If an objection is raised during the mutation process, the concerned authority will investigate the matter, and a hearing may be conducted. The mutation will be processed only after the objection is resolved.

Q4: Can mutation be challenged in court?

Yes, if there are disputes over the mutation of property, the aggrieved party can challenge the mutation in a court of law. The court will review the case and pass a judgment based on the evidence presented.

Q5: How long is the mutation certificate valid?

The mutation certificate remains valid as long as there is no further change in ownership. It serves as a permanent record of the property’s current ownership details.

Q6: Can mutation be done for agricultural land?

Yes, mutation is also applicable for agricultural land. The process is similar to that for residential and commercial properties but is handled by the revenue department rather than the municipal corporation.

Q7: What should be done if the mutation is not reflected in property tax records?

If the mutation is not reflected in the property tax records, the owner should immediately contact the concerned municipal or revenue authority with the mutation certificate and request an update.

Q8: What is the difference between mutation and registration of property?

Registration of property is the process of recording the transfer of property ownership in the sub-registrar’s office, which confers legal title to the property. Mutation, on the other hand, is the process of updating the ownership details in the municipal or revenue records for property tax purposes.

Q9: Can mutation be done for a property under dispute?

Mutation for a property under dispute may be complicated. The concerned authority may require a court order or resolution of the dispute before proceeding with the mutation.

Q10: Is there any penalty for not mutating property?

While there is no direct penalty for not mutating property, failure to do so can lead to indirect penalties such as issues with property tax assessments, difficulties in selling the property, and potential legal disputes.

Conclusion

Mutation of property is a vital process for ensuring that property records are accurate and up-to-date. It is essential for property tax assessments and maintaining clear ownership records. By following the proper procedure, submitting the necessary documents, and adhering to the local regulations, property owners can ensure a smooth mutation process. Ignoring or delaying mutation can lead to legal and financial complications, making it crucial for property owners to take timely action.

Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.

Advocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)

Contact: 88271 22304