Why is Mutation Important for Property Buyers?Samar Javed07 November 2019
After completing the real estate transaction and have name transferreda piece of land or property, you need to register mutation of property in the government records.
If you are an individual who does not know what is meant by mutation of property, yet, have completed formalities related to name transferring property and the loan-related work as well, then you will be notified about not paying property tax in a notice within a year. Mutation of property is a compulsory formality that one must do while purchasing any kind of property and registering the same, else penalty along with interest shall be accrued on the name of the buyer.
What is the Mutation of Property?
The municipal body that is located within a city premises holds onto the responsibility in maintaining the records related to property ownership transfers to avoid any kind of property tax payment fraudulent from happening in the first place. Mutation of land or property is a type of document that ensures that the property has been transferred from the seller to the buyer and lets the authorities to fix up the taxpaying responsibilities to the new buyer. Although mutation papers cannot be entitled as a legal document, it can be used wisely if you are about to sell the property in the future.
Things you should know about property Mutation:
- A minimal penalty along with the mutation fees shall be charged if at all the property has not undergone proper mutation procedures in the first instance. The penalty might start as low as twenty-five Indian Rupees if the property mutation procedures are not done within a year of purchasing a property.
- Although you can apply for property mutation even in the future, the penalty might increase and procuring the property mutation document shall become a difficult process.
- Not having a mutation done for an asset shall bring down the chances of selling them at any given instance, as the buyers might inquire about the mutation papers and the reasons behind not obtaining one.
- Even though mutation papers cannot be legally bounded, it can stand as a valid proof of ownership and can be used to maintain the tax record of the property intact.
- The affidavit for mutation of property does differ from one state to another; yet, the penalties and interest that are collected as property mutation charges mostly remain the same.
- Many people misunderstand the property mutation paper as a one-time duty and never make efforts to renew the same in the future. You need to regularly update the mutation papers to ensure the property records are clean, and no kind of tax-related problem shall happen to them as well.
How to apply for Property Mutation?
Wondering about how and where to apply for mutation of property in Kolkata or Delhi? Keep reading to learn the documents that are much-needed to acquire a mutation of land or property. In India, the documents and procedures required to fill within the land mutation form do change from state to state. You need to file for a mutation of property, especially if you are facing any of the below-mentioned circumstances:
For people who have recently bought a property:
The documents that you need to submit to get a mutation of a property if you are a direct property buyer involves submitting the filled up the property mutation application form along with three Indian rupees court fee stamp attached to it and submit a copy of the original sale deed. Buy an indemnity bond stamp paper that is worth one hundred Indian Rupees, an affidavit stamp paper that is worth ten Indian Rupees and the recently acquired tax clearance papers from the buyer.
Possible ways to obtain mutation of the property being a legal heir after the death of the property owner:
Property mutation in this type of cases can be attained by submitting the death certificate, application form for mutation of land, indemnity bond stamp paper that is worth one hundred Indian Rupees, affidavit stamp paper worth ten Indian Rupees attested by the notary, recently paid property tax clearance papers, along with the testament or will copy that notifies the legal heir eligible in obtaining the property.
For people who have recently bought property by getting power of attorney from the owner:
The property mutation is this type of case deals with submitting testament or will copy, power of attorney paper copy, indemnity bond stamp paper that is worth one hundred Indian Rupees, affidavit that is worth ten Indian Rupees and the recent property tax clearance papers, besides the property mutation application form and three India Rupees stamp attached to it.
Facts about Property Mutation:
Types of mutation:
There are two different kinds of mutation done namely,
- Mutation of non-agricultural lands
- Mutation of agricultural lands
The non-agricultural lands include residential plots, apartments, and godowns. Mutation of land is mandatory for a seller, and without having it on-board, the land title or name transfer cannot be done to the new owner. In spite of not being recognized as a legally binding certificate, mutation of land can help in protecting the ownership rights and avoid any kind of legal disturbances from happening while trying to sell your asset in any part of the future.
Most of the municipal corporations are at the moment moving towards digitalizing the existing land records that include the overall Mutation of land records too. The state government of Andhra Pradesh is about to go a step forward and integrated their respective Revenue and Registration departments to facilitate the mutation records to automatically update, once the property registration is done successfully.
The charges to apply for property mutation after completing the process that involves the transfer of land ownership in India tend to differ based upon the state norms. Inquire the mutation form application-related charges by visiting the municipal corporation that comes under the jurisdiction of your living area.
A nominal penalty of twenty-five Indian Rupees must be paid if at all the property mutation process has not said to be done in a certain time frame.
Required Documents for Mutation:
The documents that need to be submitted for property mutation remains to be the same for most of the cases, except for legal heir cases where you need to attach certain documents that can be used to verify the inheritance of the dead owner.
Documents required for a mutation in case of inheritance or Will is listed as below:
- Death certificate copy of the owner
- Testament or will copy showcasing you as the legal heir
- A no-objection certificate from the other legal successors, whose name are mentioned under the legal-heir certificate
- Latest property tax payment receipt
- Attested copy of the sale deed
- An affidavit on a stamp paper
- An indemnity bond on a stamp paper.