Any time a property changes hands, a mutation process must follow. But what is Mutation? The municipal body in a city keeps records of property ownership transfers to fix property tax payment liabilities. This is true of transfer of all sorts of immovable assets– land, flat, individual home, shop, etc. A mutation is a way to ensure that.
Once you have completed a real estate transaction and registered the property in your name, it is important for you to also get a mutation of the property done in government records. Mutation of property or land shows that a property has been transferred from one person to another, and it also assists authorities in fixing taxpayers’ responsibility. Although not a legal document, it will be crucial if you want to sell your property.
In different states, the process has a different nomenclature. In Uttar Pradesh and Bihar, for example, the process is known as Dakhil-Khariz (entry-omission).
You must note that a very minimal penalty — as low as Rs 25, for instance — is charged if you do not get mutation of the property done. And, you can also get the job done when it suits you. However, if you decide to sell your property in the future, buyers will surely ask you to produce mutation papers. Not having them in place may jeopardize your chances of selling your asset.
Also, because it’s not legally binding, mutation of property is important as it stands as proof of ownership and might act as a tax record.
Property mutation is done in the following circumstances:
Now let us explore the procedure for mutation of property.
Those who buy land or apartments or inherit the same through a will or a gift deed have to get property mutation done. Mutation of property is done at the municipal office of that area. It may be done online too. Several states have launched their online services.
The buyer must appear in the municipal office, along with all the documents. Following the submission, the department would conduct physical verification of the property and then, issue the property mutation certificate.
As a lot of states now allow you to complete property mutation online, you can simply visit the official portal concerned, to go ahead with the process. You could also check the previous mutation or ‘dakhil kharij’ records online, by visiting the official portal and providing the details of the property and the owner.
Mutation in home loans is a good-to-have document while buying property. It is called the Mutation extract. This document contains the inheritance certificate with the previous owner’s details, details of the present owner, the mode of acquisition of property, and the extent of the property.
While some states charge a nominal fee for property and land mutation, others levy property mutation rates as a certain percentage of the property value. In states that charge a nominal fee for property mutation, the rate may vary between Rs 25 and Rs 100. In states where charges a higher, at least 1% of the property cost could be charged as a property mutation charge. Also, note that the property mutation charge is a one-time duty.
Once you submit your application, along with the required documents, it might take the municipal body 15 to 30 days to update the record. The mutation of house property is complete when a certificate is sent to you. In case of land mutation, it will take at least a month for the records to show the change in land ownership.
Although the mutation of property is not a legal document, and the penalty is not steep, most people postpone the mutation process. But you must get it done as early as possible, to keep your property documents in order.