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What is Mutation Of Property & How it Works?

Among the other complex legal procedures and documentation, one essential procedure that a buyer needs to follow is property mutation. It is after individuals have finished their real estate transaction and registered the property under their name. Moreover, it is also necessary to pay property tax to the Indian government every year.

Keep reading this article to know more about what is a mutation of property, how to carry it, its type, documentation and more.

What Is Mutation of Property?

If wondering what is a mutation of land, it includes the process of transferring the title of a property from the previous owner to a new owner. This denotes that from now on, the new property owner will pay the requisite property tax to the government. Different states of India have different nomenclature for the process. Moreover, in Bihar and Uttar Pradesh, this Mutation process is also called Dakhil-Khariz.

 

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What Is the Importance of Property Mutation?

It is essential to carry out this property mutation process because it serves as a way for the municipal body to know who is liable for tax payments. In other words, the property ownership transfer record fixes the taxpayer's responsibilities.

Apart from this, it also benefits house owners by helping them sell their property to another person in the future. It will reduce the chances of losing a prospective buyer as he or she will probably ask for mutation papers.

 

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What Are the Types of Property Mutation?

The concept of property mutation will be more transparent when one learns about its types. Mutation of property can be divided into two broad categories. It includes:

  • Mutation of Agricultural Land: This type of property mutation is crucial as, without it, one cannot pass the land title to the new owner. So, during the land acquisition, the government will charge compensation in the previous owner's name as he/she did not update the government books. Moreover, this new owner will lose his/her right.
  • Mutation of Non-Agricultural Land: Under mutation of non-agriculture land comes properties like flats, independent houses, residential plots, etc. Failure to update the title of these properties will not take away the new owner's rights. However, since he/she has not mutated, this new owner is not liable to pay water, electricity and municipal tax.

What Are the Eligibility Criteria to Apply for Property Mutation?

There is only one essential criterion to apply for a property mutation certificate. It includes the person requesting it should hold the right of the title of the concerned building, land or dwelling, shop or establishment.

When Is Mutation of Property Done?

After the buying process of a property is complete, its buyer must update details in the Government land revenue record. This is after the signing of a sale agreement has taken place. However, apart from this, one must obtain a property mutation certificate every six months. This ensures there are not any unscrupulous mortgages or property transactions.

Also, one must complete mutation of property in all circumstances, including transfer of an asset, death of a property owner, sale or purchase of a property, gift, inheritance, etc.

Which Documents Are Required to Apply Property Mutation?

There are two purposes behind the sale of land. It is either on the inheritance or death of a legal owner. The documents required under these two categories differ. It includes:

In Case of Sale

  • Ration card
  • Aadhaar card
  • Sale deed
  • Stamp paper of the applicant
  • Receipt of property tax paid by you
  • Registration deed including both previous and current owner
  • Land mutation application form (duly filled)
  • Stamp paper mentioning the applicable value

In Case of Death

  • Sales deed
  • Aadhaar card
  • Death certificate of previous title holder
  • Affidavit on a stamp paper
  • Photocopy of Will
  • Photocopy of Attorney
  • Registration deed
  • Photocopy of a succession certificate
  • Other documents as specified

How to Apply for Mutation of Property?

The application process of property mutation depends on the state you are applying from. So, to explain the procedure here, we are taking an example of how to apply for Land Mutation in West Bengal:

Offline Procedure to Apply for Land Mutation

Step 1: Visit the nearest sub-registrar office or concerned block to start the registration process.

Step 2: The application form is easily available in the concerned office. Ask for it and fill it up in the prescribed format. Or,

You can also download the physical application form from the official website. Next, fill it up as you would have in the former case.

Step 3: While filling out the form, you will have to give information regarding the district, name and address of the seller, buyer's name, survey number of both old and new land, Taluk or village detail, or other details of property registration.

Step 4: Submit this application form along with supporting documents to validate the information mentioned.

Step 5: You will get a transaction number on your registered mobile number after submission. It will state information relating to the successful registration of the mutation process. You must take note of it to check the status of your application form online.

Step 6: Next, a sub-registrar officer will transfer your request to the concerned authority. This step ensures that before passing your request, the authorities can satisfy that acquisition of property has actually taken place. Also, it does not contravene any provision set by the West Bengal Land Revenue and Land Reform Rules.

Step 7: Now, physical verification and estimation of land will take place to check if it tallies with your registration deed. Also, it will give an idea of whether the land carries any unresolved dispute with its neighbouring borders.

Step 8: This department will process your mutation request after successful verification. Lastly, the authorised Government officer will issue you a mutation document.

Step 9: Once your property verification is complete, the revenue officer will update the property's name from seller to buyer. Thus, as a new buyer, you will be able to obtain a new ROR and update the property detail of the existing ROR. Also, as you have become the new property owner, you will have to pay all taxes under the new ROR.

Online Procedure to Apply for Land Mutation

Step 1: Visit the specific property mutation website of the state of your residence.

Step 2: Click on 'Mutation Application' on its menu under the online application tab.

Step 3: It will redirect you to a new page containing the application form.

Step 4: You will have to provide details in its prescribed field regarding the applicant, transferer, enclosures and more.

Step 5: Next, upload all necessary documents as asked by this site, including legal heir certificate, registered deed, chain deeds, and others.

Step 6: After registering, you will enter a collection of fees portal. Here, select the pay the fee option under the online application tab on the menu.

Step 7: Next, click on 'Fees Payment'. For this, you will need to fill up 'Request Type' and 'Application Number'. At last, submit 'Next'.

Step 8: Once this payment of mutation charges has been cleared, click on 'Submit'.

Step 9: You will receive an acknowledgement receipt mentioning your mutation registration number. Note it down for future reference.

Step 10: Your concerned authority will do the rest of the process, including physical property verification, to issue you the requested mutation certificate.

What Format Does a Mutation Certificate Follow?

Land records of different states look differently, and thus the format of a mutation certificate cannot be standardised. Despite this, every mutation certificate will contain essential details of a concerned land. It includes:

  • Mouza number
  • Police station details
  • District Name
  • Khasra or Khaitan number
  • Land area
  • Name of concerned parties
  • Signature and stamp of concerned authorities
  • Plot number

What Is the Difference Between Property Mutation and Property Registration?

The new land owner can confuse the mutation process of a land and its registration process. This is because it may look similar, but there is a difference between the process and reason.

Property Registration Property Mutation
After the sale of a property, its buyer has to deposit a stamp duty and registration charge to the land and revenue department of the state where the property sits. These charges vary from one state to another. Mutation of property occurs at a later stage after one year has passed since the registration of a property. It is the responsibility of a buyer to get his/her property documents mutated by the authorities.
The registration takes place once this payment is complete. Buyers must approach their land and revenue officer to complete this mutation process.
Registration of a property is a much more immediate process as compared to property mutation. Moreover, it also involves the formation of a 'Sale Deed'. Mutation of a property is a complicated and more time-consuming process than that of property registration.

FAQs About Property Mutation

Is there any charge you need to pay for receiving the mutation certificate?

Yes. The local civil body requires individuals to pay a nominal fee ranging from ₹ 25 to ₹ 200. This varies from one state to another state.

What if my request for mutation of a property gets rejected?

If the authorities reject your request for property mutation, you can reapply for it. However, remember you can only reapply for it once 30 days have passed since rejection.

What happens if I do not complete the property mutation process?

Mutation is mandatory if the property is an agricultural one. The property will not be transferred to the new owner’s name if the owner fails to mutate it. On the other hand, in case of non-agricultural properties, the buyer will continue to be the owner of the property. However, the owner will not get electricity or water connections, and cannot pay municipal tax.