MUTATION OF PROPERTY
The practice of modifying or transferring ownership title from one person to another in the local municipal authority’s tax records is known as Mutation/Inteqal of property. It is a change of entries in the Tehsildar’s Record of Rights (ROR) as well as maps. The name of the transferee is modified in the lessor’s records when the leased premises are transferred by way of sale, gift, or other means. Mutation is a fiscal enquiry and it does not create right, title and interest nor extinguishes right, title and interest.
Mutation enables the authority to issue accurate tax paperwork and determine the amount of property tax due. Property mutation is necessary so that all utility bills and property tax receipts are generated in the name of the new owner. When a property is mutated, the new owner has the property registered in his or her name with the land revenue department, allowing the government to collect property taxes from the legal owner.
The Buyer bears the responsibility of confirming the property’s title; therefore, he/she must check that all past exchanges associated with the property ownership are properly recorded in land records/municipal records. It is true that documents such as registered sale deeds, land records, property tax receipts, and so on serve as proof of registration, but mutation ensures that the same is documented with the local authorities. The Mutatation of a property should ideally be taken periodically, every six months, from the revenue office in order to check for any fraudulent transaction on the property. In the event of an inheritance following the owner’s death, the property should be renamed in the beneficiary’s name as soon as possible. Although mutation is not a legally binding procedure in and of itself, it is a significant aspect in terms of serving as proof of possession, imposing tax duties by the relevant authorities, resolving land-related issues at the local level, and so forth.
Mutation of Agricultural lands – In the case of agricultural lands, mutation is vital. If the mutation process is not followed, an individual will be unable to transfer the land title to the new owner. The mutation, as well as the identity of the owner, should be recorded in the revenue records. Compensation is only given to those individuals whose names are documented in the revenue records when the government acquires land.
Mutation of Non – Agricultural lands – Failure to mutate the property does not take away the right in the sale deed in the event of non-agricultural lands such as apartments, independent dwellings, residential plots, and so on. This means that the buyer’s title will not be changed, and they will remain the property’s owner. If the owner of these structures does not change, they will lose their power and water connections, as well as their ability to pay the municipal tax.
Requirement of Mutation of Property
Every time a change/transfer of ownership is implemented, mutation is required. The following methods could be used to get the same result:
Sale or Purchase of Property – The paperwork for mutation in this example would be a copy of the Power of Attorney papers, an affidavit and indemnity on stamp paper, and property tax clearing documents.
Inheritance of Property – A copy of the death certificate, coupled with documentation confirming the deceased’s link to the claimant in the case of intestate succession, a copy of the will (in the case of property inheritance through Will), and property tax clearance paperwork would sufficient.
Power of Attorney – In the concerned case, the documents for mutation would be that of a copy of Power of Attorney papers, Affidavit, and remuneration on a stamp paper, property tax approval documents.
Procedure of Mutation
The process begins with the filing of a mutation application with the Tehsildar of the area, along with a non-judicial stamp paper of the requisite value. The process for altering a property’s ownership differs by state. To request a change, fill out an application form with a court fee stamp. The form must be completed, signed, and delivered to the Tehsildar or the individual in charge of the local Municipal body that keeps track of the property’s land records. Alternatively, an online application for the mutation can be made on the various State Government portals, since many Municipal Corporations have now moved toward digitalization of existing land records and of the mutation procedure itself, beginning with the application stage.
Once the documents are submitted along with the application of Mutation then the statements of the parties are recorded and matched with the contents of the submitted documents to look for any discrepancies. The suggested mutation is approved if no objections or discrepancies are detected. If a disparity is discovered, the case is sent to the area’s Revenue Assistant. If the parties are dissatisfied with the order, they can submit an appeal with the Additional Collector within 30 days of the date of the order. The procedure of mutation includes inviting objections and physically inspecting the property, after which, if the body is pleased, the mutation certificate is issued within 15-30 days.
To avoid legal implications later on and to ensure that all legal requirements are followed, it is always important to seek legal advice from a lawyer before completing any property transfer. As a team of Estate experts, we at Legal Help NRI provide legal advice and assistance in case of mutation or for cross – checking the revenue records in case of purchase or sale of any property.