- Real estate investments are not only expensive, but they are also accompanied by complex but necessary documentation. Land mutation, also known as property mutation in government records, is an important process that must be completed after the property has been registered.
- Mutation of property is the process of transferring the ‘Title’ to the new property owner. The property tax mutation also means that the new property owner will be responsible for paying the required property tax from that point forward. Property mutation, also known as “Dakhil Kharij” in Hindi, is the process of transferring title ownership from one person to another when an asset is sold or transferred.
- Property mutation must be done by people who purchase land or inherit it through a will or gift deed. Here are some quick facts about property mutation, which are discussed in greater detail in the blog.
Property changes occur at the local municipal office.
You can also apply for the mutation process online.
Property mutation fees vary by state.
Mutation of property differs from property registration. It also happens after the property has been registered.
A new mutation certificate is usually released within 30 days of submitting all of the required documents.
- After completing the property purchasing process, including signing the selling document, the buyer must update the records of the government’s land revenue department. The property mutation certificate should be obtained every six months to ensure that there are no fraudulent transactions or mortgages on the property.
Mutation of property is required in all asset transfers, including property sales and purchases, property owner death, inheritance, gifts, and purchases made under Power of Attorney (PoA). After the mutation procedure is completed, the asset is officially registered in the owner’s name in government records. This allows the government to levy a property tax, which varies by state.
There are two broad categories of property or land mutations:
- Mutation of Non-Agricultural land
- Mutation of Agricultural land
Mutation of agricultural land- Mutation of an agricultural land parcel is extremely important because it legally transfers the land title to the new owner. Furthermore, in cases of land acquisition, the government pays compensation in accordance with the land mutation documents. If the land was recently sold and the new owner has not changed his/her name, the compensation will be denied to him.
However, this is not the case for residential properties. If the properties in question are independent flats, builder floors, houses, or villas, the non-mutation does not deprive the new owner of their ownership rights.
The new owner will not be liable to pay municipal taxes, electricity, or water charges until he receives the new documents in his/her name, as they will continue to be charged in the previous owner’s name. However, it is best to complete the mutation as soon as possible because the mutation documents will be required to sell the property in the future.
Mutation of Property: Benefits
Although the Government of India has made property mutation mandatory, it is critical to understand the benefits that come with it. When a property owner updates land mutation records, they will receive the following benefits:
- Ownership of the property: Mutations of property serve as proof of ownership because they change the title entry in the municipal corporation’s revenue records.
- Allows receiving government compensation: Mutation is added to the government’s land records, so it serves as a legal document for obtaining government compensation. If the property owner fails to carry out the mutation of the property, they will be ineligible for government compensation.
- For electricity and water supply: Residential properties will not receive water or electricity until the mutation is completed.
- Saves against property tax penalties: Only after the property mutation is complete can the owner pay property tax. It is critical to pay property tax on time to avoid serious consequences.
