Introduction:
Among the many legal procedures, one should have to follow to get complete ownership of the immovable properties is mutation.
It has often been observed that people get the land /property transferred to their name, but they face many problems due to a lack of information about mutation. As a result of which, the chances of fraud and litigation related to property increase. Therefore, it is essential to register the mutation on time.
Summary
- Mutation refers to the transfer of ownership from one person to another.
- Mutation can be done with regard to agricultural and non-agricultural land.
- A person can file an appeal before the concerned authority in case of rejection of mutation.
- The deceased person’s death certificate is necessary to apply for mutation based on natural succession.
- It is advisable to get the mutation of the property done to avoid any discrepancy in future
Table of Contents
What is Mutation?
In the Revenue Record, the transfer of ownership from one person to another is called mutation.
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What are the types of Mutation?
There are many types of mutation pertaining to agricultural and non-agricultural land:
- Mutation through inheritance,
- Mutation based on Sale deed/Transfer deed/Gift Deed
- Mutation based on a court decree
Mutation through inheritance
Whenever a person dies, his property is transferred in the name of his legal heirs based on natural succession; then this kind of transfer is called mutation through inheritance. Whenever a person dies, an application is given to the concerned authority on behalf of his legal heirs to sanction the mutation, along with an affidavit on behalf of the applicant in which the information of the legal heirs has been written and the death certificate of the deceased person. If there is a Will of the deceased person, then a copy of the Will is also attached with the application to get the Mutation done on its basis. This application will be given to that area’s concerned authority after checking and verifying all the documents; Mutation will be entered in the latest records.
Mutation through Sale deed / Transfer deed/Gift deed
Whenever a property or land gets transferred in the name of any person by way of a sale deed, gift deed or transfer deed, then mutation can be applied based on these documents. It is to be noted that documents required for the mutation process may vary according to state procedures. However, a transferee has to submit the following documents for the mutation of property:
- Form/Application of mutation with required court fee affixed on it
- Copy of Sale Deed /Transfer Deed/ Gift Deed
- Affidavit on stamp papers
- Indemnity bonds
- Photocopy of Aadhar Card
- Property tax receipts (if required).
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Mutation based on a court decree
Whenever a person is declared as the owner of a property/land by a civil court, then the mutation is carried out based on that court order. In this case, also, the application will be given to the concerned authority, with which it is essential to attach a copy of the affidavit and the court order. Then, after checking all the documents, the concerned authority approves the mutation.
Is it possible to file for an appeal if there is rejection in the Mutation process?
A party can file an appeal before the additional collector or the deputy commissioner within 30 days of the order of rejection.
Who has to get property mutation done?
Those who buy apartments or land or inherit the same through a gift deed /Will /natural succession get the mutation entered in the records. An attorney holder can also file an application for mutation.
Transfer of property
Property ownership in India can easily be transferred from one person to another via various means. To be converted from a simple gift deed to a relinquishment deed, options usually vary from situation to situation. The following are some of the ways through which one can transfer property ownership in India.
Sale Deed
One of the most common and easiest ways of transferring property is via sale deed. When a party sells their property to another party, they generally use a sale deed concerning the execution of property transfer between the parties. After the sale deed is listed in the sub-registrar office, the ownership of the property is automatically transferred to the other party. It can be regarded as one of the simplest and most common ways, but it may not be a cost-effective transfer of a property’s rights.
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Gift Deed
The transferring of property ownership can also be done by gifting the property to another person with the use of a gift deed. According to Section 122 Transfer of Property Act, 1882, a property can be transferred as a gift can be termed a voluntary transfer.
A gift deed can be regarded as a better method than a Sale deed as there are no taxes to be paid if the gift is made to relatives. However, the registration charges and stamp duty must be paid to make the transfer legally enforceable. Apart from that, the transfer will be irrevocable. When gifts are made to non-relative costing more than Rs 50,000, in such a case, the recipient of the gift will need to pay taxes on the gift received.
Relinquishment Deed
The ways we discussed earlier work when the property has a single owner. So, what happens when a property has many owners? And one of its owners wants to transfer their share to another? Such transfers occur through the deed of relinquishment.
Relinquishment is also known as the surrender of ownership rights in favor of a co-owner. The applicability of stamp duty is required only on the relinquished portion and not on the entire property value.
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Will
Transfer of property can be made through a Will too. However, it can only happen after the person making the Will’s lifetime. It is to be noted that the person receiving property through Will is not eligible to pay the type of taxes. A Will can be replaced or revoked any number of times during the lifetime of the person drawing it up.
After the death of an individual, its successor needs to apply to the relevant concerned civil authorities with a copy of the Will as mentioned above, succession certificate, and death certificate for completing the property transfer process.
Transfer of ownership of property from joint to sole.
Generally, it is signed by a legal heir who relinquishes the property’s ownership in favour of another legal heir. It could be an ancestral or joint property. This process also takes place when a parent dies without leaving any will.
It is irrevocable even when one relinquishes without being adequately compensated.
With all documents related to the transfer of immovable property, a release deed needs to be signed by the party who is relinquishing their share, stamped and registered. Stamp duty will only be applicable on the portion of the relinquished property.
You cannot relinquish the property’s ownership in favour of a non-co-owner. If you plan to transfer your property ownership to someone else, it should be treated as a gift deed, and it can also attract various charges of stamp duty.
The document can be presented for registration either in the office of the particular Sub-Registrar in whose sub-district the execution of the document is made or any other Sub-Registrar under the State Government in which the parties are executing and claiming the same document for registration.
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What is the minimum time required to complete the process of property mutation?
After submitting the application with the required documents, it might take the concerned authority almost 15 – 30 days to update the record, after which it will issue a property mutation document to the applicant. Generally, in inland mutation, the processing time will be around a month for the land records to reflect the necessary changes made in the land ownership. However, due to unforeseen circumstances, it may take a longer time than usual.
Why is a mutation of property needed?
Mutation Records do not confer the property’s title on the person whose name is on the records as that should be done independently through a declaratory suit; the significance of the mutation of property can be easily seen going over the requirement of the mutation records in various situations such as for:
- Ascertainment of land ownership
- Updating the revenue records of the government
- Fixing property tax liability
- Applying for utilities such as electricity, water etc. and receiving the bills
- Selling of the property in the future
- Issuing correct and proper tax documents
In the case of ownership related to land, then the mutation process is considered an important document. For example, if an agricultural land has been acquired by the Government of India and the registration of such land is in another person name X while the mutation process is in favour of Person Y, the government will release the acquisition funds in favour of Person Y, as in the revenue records he is recorded as the owner of the land.
So, Property mutation is a significant formality for those who acquire property in any way, and this process of mutation must be completed as soon as possible to avoid any unnecessary hassles for the property owner in the future.
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Is the process of Mutation mandatory?
Only an individual whose name changes can pay the property or revenue tax. Even though property registration is compulsory in India, the mutation process is not legally enforceable. This enables an owner to sell his property without any doubt.
Mutation of the property is mandatory for buyers of land. However, in the case of non-agricultural land and for buyers of apartments and flats, the mutation is regarded as a legal formality. Therefore, if anyone fails to do so, he cannot relinquish away one’s right to the property.
Although this is not the proof of ownership of the land/property, it can be considered as a basis for deciding the ownership along with other documents.
The same was decided in the cases of Balwant Singh and Anr. Vs. Daulat Singh by L.R.s. & Ors. (1997), and Narasamma & Ors. Vs. State of Karnataka & Ors. (2009). This cannot be changed as this is case law.
The ruling of the Supreme Court of India in the case of Smt. Bhimabai Mahadeo Kambekar (D)Th. L.R. Vs. Arthur Import and Export Company was the same as the case mentioned above the law. This also cannot be changed as this is case law.
Thus, it can be said that the mutation entries are only for the purpose of Revenue and to make sure that the revenues and taxes associated with the land are being paid regularly without any default. Lastly, property registration is legally enforceable; however, the mutation of property is not legally enforceable. Also, property mutation is completed in nature to ensure that all of the records regarding the property mutated are updated.
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What is the property mutation fee
It is important to note here that the process of mutation and its fee structure in India is different in each state, which keeps changing as per the state’s policies.
While some states charge a very minimal fee for land and mutation, others levy the property mutation rate as a certain % of the property value. In various states which charge a minimal fee for property mutation, the rate may vary between Rs 30 and Rs 100. However, in some states with much higher charges, at least 1% of the property cost could be charged as a property mutation charge.
Conclusion
Mutation of property is the process of updating the land records by the local municipal body or Revenue authorities after transferring title/ownership in a property from one person to another.
The process for getting the property recorded in the new buyer’s name varies from state to state. Still, there is also a general structure by which it can be done by making an application to the concerned officer at the relevant local municipal body or Revenue authorities along with the documents as mentioned above-containing sale deed/death certificate/copy of Power of Attorney papers as applicable, indemnity bond, affidavit, proof of payment of property tax, and other additional documents in the prescribed format.
Therefore, it is advisable to get the mutation of the property done to avoid any discrepancy in future.
FAQs
A property owner should apply for the Mutation of the property in their name at the relevant concerned authority, which maintains the land record of the said property.
Yes, it is possible to start the Mutation process once the deed is registered in the Sub Registrar’s office. Then the detailed information about the seller and buyer should be recorded in the revenue records.
The following are some of the necessary documents that are required to be furnished along with the application for Mutation by way of inheritance:
- Death certificate of the deceased person
- Next of kin certificate
- Probate from a competent court in the case of a will
- Affidavit mentioning the applicant’s relationship with the deceased person
- A declaration in affidavit form in which the land/property has been intended to be mutated in the place of the deceased that has not been transferred when the deceased was alive.
Mutation of property is mandatory for the land buyers. However, in the case of the sale of non-agricultural lands and apartments or flats, the Mutation is considered a legal formality for the buyer. If the buyer fails to do so, then there is a possibility not to relinquish away one’s right to the property.
Mutation of the property refers to the change in the ownership title when a property is transferred or sold, which is recorded in the revenue department.
The appellate authorities are the Board of Revenue, Settlement officer, and Deputy Commissioner.
Mutation of property in the name of the owner acts as proof of legal ownership of the property. This document is also beneficial while applying for water and power services.