BUY / SELL / MUTATION
Buying a property (home/plot/land) is one of the most important decisions that you will ever make. Buying a property involves a lot of money and it is a serious money decision.
When you are selling a property, the prospective buyer might ask for a copy of the latest mutation document. Based on my experience, it has been observed that many people do not know the importance of this document.
Mutation is the change of title ownership from one person to another when the property is sold or transferred. By mutating a property, the new owner gets the title of the property recorded on his/her name in the land revenue department and the government is able to charge property tax from the rightful owner.
One needs to get mutation done and get the new owner details updated in the revenue records maintained by civic bodies like Municipalities, Panchayats or Municipal Corporations.
There are two types of mutations.
- Mutation of Agricultural lands &
- Mutation of Non-Agricultural Lands. Example : Flats, independent houses, residential plots, godowns, etc.,
In case of Agricultural lands, mutation is must. Without mutation the land title will not pass to the new owner. Mutation should be entered in the revenue records. The owner’s name which is recorded in the revenue records is referred as ‘Pattadhar’. In scenarios like land acquisition by the Government then the compensation is paid only to the individual whose name is present in the revenue records.
In case of non-agricultural lands, failure to mutate does not take away your right in the sale deed. That is even though the mutation has not done, the purchaser’s title will not be affected. He/she will remain the owner of the property. But the only problem of not mutating is that you may not get electricity connection, water connection and you cannot pay municipal tax.
Documents required for mutation
In case of sale deed:
Copy of sale deed Application for mutation with court fee stamp affixed on it Indemnity bond on stamp paper of requisite value Affidavit on stamp paper of requisite value Clearance of up-to-date property tax
In case of death of the owner:
Death certificate Copy of Will or succession certificate Indemnity bond on stamp paper of requisite value Affidavit on stamp paper of requisite value, attested by Notary Clearance of up-to-date property tax
In case of power of attorney:
Copy of power of attorney Copy of Will Receipt of payment registered by sub-registrar Application for mutation with court fee stamp affixed on it Indemnity bond on stamp paper of requisite value Affidavit on stamp paper of requisite value Clearance of up-to-date property tax
In case of death:
a copy of Will or succession certificate is also required to ensure that there is no malpractice in mutation cases.
However, where the assessing officer is satisfied that there is no malpractice in the claim of mutation, these documents may only be insisted upon:
Death certificate of the original assessee Affidavit together with no objection certificate from the other legal heirs of the deceased or their successors in interest Indemnity bond containing an undertaking of the executant that he indemnifies the Corporation in the event of dispute arising from the mutation made upon his application Rough site plans showing different portions of the building and the signature /thumb impression etc of the persons occupying these portions The prevailing rate of transfer duty on the consideration amount should be paid.
Also, for each apportionment, appropriate mutation fee is to be paid. If the entire building or plot has been sold, mutation may be allowed on payment of upto-date dues. In case of sale by agreement to sell, it is allowed on payment of transfer duty at prevailing rates.
If a part of the building or plot has been sold, mutation may be allowed in the name of the purchaser on payment of up-to-date taxes for the portion purchased. Subdivision will not be allowed if the sale is not through a registered document.
In case of inheritance of a property by more than one legal heir, mutation or subdivision in the names of all the legal heirs may be allowed subject to clearance of up-to-date taxes by each of them for their respective portions. Also, sub-division will be allowed only if physical divisions exist. The case of each legal heir has to be decided independently regardless of payment or non-payment by others for their respective portions.
Whenever the title of any person, primarily liable for the payment of property taxes on the land or building, is transferred, the persons whose title is transferred and the person to whom it is transferred should give a notice of such transfer to the Corporation. The notice has to be given by the transferor as well as the transferee. If any notice is pending, the liability for the increased rateable value after the date of transfer will be that of the transferee. As such, the transferee should ensure that either the pending proposals are decided or additional taxes are paid by the transferor.
Whenever a transferee presents documents for transfer, a letter is to be issued to the transferor inviting objections. The objections received, if any, should be within 15 days of the issue of such letter. If no objection is received within 15 days, the property may be mutated in the name of the transferee, subject to fulfilment of other conditions.