When you register for immovable assets like land, flat, and a house, then the property’s mutation may be a common term that you simply here in the land revenue department. It is like updating the land records after buying land. But why we have to update them? Will there any penalty if we do not do that? What exactly does it mean? Let’s check what Mutation Of Property is!
A mutation may be a transfer of ownership from the seller to a buyer, and it comes into the picture right after your registration work completes. Mutation of property is required when the property is transferred through various methods as the gift deed, inheritance, will, partition, or sold. One has got to do the Mutation of property because in the future, once you are selling this property, you may need them. It is like recording the property on the new owner. The municipal body in a city keeps these records to repair the taxpayers and their responsibilities.
Why Is Mutation Of Property Important?
In this article
Although it is not a legal instrument, it ensures that the immovable property belongs to the rightful owner. Some claim that this land belongs to them by providing false registration documents. So, to avoid such quite claims and scams, the government initiated the Mutation of property. These documents are useful at the time once you are trading your property. Mutation reports assist officials inlining “taxpayers” responsibility, and this report might act as a tax record. If you’ve not registered for the property’s mutation, you will find yourself paying the penalty for due in land tax. It is also going to complex the probabilities of selling the property. It’s just a simple process. These papers need to be updated from time to time.
An update of your records is essential. If the mutation of property is not done, it is difficult to get compensation from the government side when the Government obtains the land—the only individual whose name in land records is issued the payment. A penalty of Rs.25/- is to be done if you have not done the Mutation of property.
How To Apply For Mutation Of Property?
Once the property is sold, the buyer must submit all the documents like valid registry, sale agreement, NOC, etc., to get a mutation report. The cost of mutation reports may change from one state to a different state. After applying for a mutation report, you have to submit the later documents in “land revenue department”:
- A copy of Sale Deed.
- Mutation application with a court fee stamp.
- Receipt of the land tax payment, and it should be up-to-date.
- Indemnity bond on stamp paper.
After submitting all the specified documents, a notice is issued to check any objections by specifying the last date. If there are not any objections, then Patwari submits his/her report in a prescribed format. The statement of both buyer and sellers is recorded, and verification of documents takes place, and later, Mutation is sanctioned if everything goes well.
Why Indemnity Bond And Affidavit Are Required?
An indemnity bond is cross-checked when there is a dispute. After solving the dispute, the owner can get reimbursement through this bond.
Affidavit bond is like a statement given by the owner during registration. So this is required to verify the documents by the ruling government. An affidavit is nothing but an oath or affirmation used as evidence in court. Across India, to file for Mutation of property, you would like to be under these circumstances:
i. If you have bought a property: Once you buy a property, register the property in your name by applying for Mutation. Mutation of the property will be sanctioned once you provide the required documents to the officer.
ii. If you are an heir and mutation of the property after the death of the owner: During this, applicants are asked to submit a death certificate, a copy of the will, an indemnity bond paper, the latest land tax, and an affidavit provided by a notary.
iii. If you purchased a property through power of attorney: During this case for mutation of property, you are asked to submit a copy of the paper associated with a power of attorney, a copy of the desire, latest property clearance papers alongside an application with a court fee stamp affixed and also an indemnity bond on Rs.100/- stamp paper.
iv. If you have bought a land with a partnership: Mutation is done on both the landholders, and also the documents that are to be submitted are as same as mentioned earlier.
Types Of Mutation:
- Mutation of Agricultural Land
- Mutation of non-agricultural land like Flats, Lands, Independent houses, etc.
What About Online Mutation Extracts?
In the era of digitalization and modernization Government of India decided to form easily accessible RTC and Mutation of property. So, state governments decided to digitalize the Mutation of property.
Benefits Of Online Mutation
i. One can easily access and verify their Mutation documents without running to Revenue departments.
ii. One can get their Mutation document and may know the status of their land anywhere and anytime.
iii. Transparency in transactions with the history of land records.
iv. The monitoring of land records will now become easier.
v. The transaction of land property happening in the Sub-register office must automatically be updated to Tahsildars to be fast documentation of Land Records.
vi. The public can know his/her land records and do fair transactions on those.
vii. Secured data transmission and record updates using a private network structure.
1. Can the property be sold without Mutation?
It is not mandatory to try and do the Mutation of the property once you are willing to sell the land again. Because Mutation is nothing but updating the ownership ashore from time to time. So once you don’t need to sell the land anymore or if it is agricultural land or a flat or an independent house, it’s better to update land records. A penalty of Rs.25/- is issued if you do not Mutate your property.
2. Difference between Registration and Mutation?
Registration is transferring property or changing of ownership from one person to another. In contrast, Mutation is updating or changing the names of ownership in official records like MRO/Municipal/Tax department after registration mutation has to be done to vary official records in buyer name.
3. Can the Mutation be done online?
You will only see the mutation document online. To see true documents and witnesses, RTC and Mutation of property are wiped out office Revenue Department.
4. How many days may be a Mutation?
Mutation is done within 18 working days from the date of receipt for mutation. 15 days for passing and remaining days to issue the correction slip.
The Mutation is usually done to update ownership ashore by verifying varied documents and making statements of the buyer, seller, and a witness. It is not a compulsory document. If you would like to own a secure and beyond dispute, it is better to have one.