Unlike many western countries, transactions in the real estate market are a lot of work in India. One can say that a deal is closed by wading through tons of paperwork, verification and audits, legal protocols and so much more. It does not end here- this entire process and steps involved to seal a deal differ from one state to another.
There are many kinds of property mutation and is a fairly common process of registering your property. Top builders in Chennai always suggest buyers purchase a property that has an undisputed title. Hence land records or municipal records, all previous exchanges recognised with the property title needs to be accurately recorded. Clean records with the municipality can only be ensured if the mutation is done correctly.
So what is mutation?
The mutation is a process that records change or transfer of the title of ownership of a property after it is sold. Also known as ‘Dakhil Kharij’, the mutation is documented with the land revenue department and helps authorities to levy tax liability on the rightful and legal owner of the property.
As much as we would want to be assured, the mutation is not a one-time thing. Ideally, the owner of properties should go through the process of mutation every six months in order to ensure that the property is protected from any fraudulent activity.
Prospective homeowners must be aware of the rule of mutation as it is required for every change in ownership. Some of the common causes of change or transfer of property ownership include-
Sale or purchase of property
As a homeowner, if you are buying any property through top builders in Chennai, there are some documents that must be presented at the time of purchase. A copy of the registered sale deed, application for mutation with the court fee stamp, recent property tax clearance documents, indemnity bond on stamp paper, etc.
Property can be inherited through a will or by intestate. In this case, mutation of property would require a copy of the death certificate plus the documents that serve as proof of relationship between the deceased and the claimant, a copy of the will for the property, and property tax clearance documents.
Power of attorney
Documents required for mutation, in this case, would include a copy of the papers stating the power of attorney, affidavit, documents showing property tax clearance, and indemnity on a stamp paper.
What are the various types of mutation?
Mutation for any agricultural land
Mutation is a must when it comes to agricultural land as it has an immense influence on the land’s title of ownership at hand. Until the process of mutation has been completed and recorded under the revenue collection system, the transfer of ownership will not be deemed legal.
If any piece of land is acquired by the Government of India, compensation is provided only to those people who have their names registered as legal owners.
Mutation for non-agricultural land
Although non-agricultural land will not have bearing on the title of the property, the absence of mutation might lead to the owner’s liability of paying municipal or corporation tax. Instances of disruption of water supply and electricity connection have also been recorded. So when you are looking at flats for sale in Mogappair west or apartments in Nolambur, make sure to ask for mutation papers before closing the deal.
Why is property mutation important for all kinds of property buyers?
Experts and top builders in Chennai state that upon completing the purchase of any property and registering it in your name, it is crucial to complete the process of property mutation.
If you don’t get the mutation of your property done, you might have to pay some penalty. Although there is no fixed tenure or timeline to complete the process of mutation, you can do it whenever you find it convenient. The process of mutation is not a legally binding process. But it plays a significant role in the maintenance of tax records. The cost of mutation also varies from one state to another. There are also chances of not being able to pay the electricity charges along with water charges if the mutation is not done.
Can I apply for property mutation online?
Depending on your state, the provision of an online application for property mutation is available. Check the official portal and government websites to proceed with the application and keep the paperwork containing details such as tax records handy. The State Government of Karnataka allows digitized land records and this is extremely helpful as it prevents corruption and manipulation of data.
After the submission of all the required documents on the portal, you can expect a local revenue inspector to validate those documents and conduct an inspection of the property in question. If this process is completed without any problems, the application will be processed. However, the new owner of the property will not receive the documents of mutation before 15- 30 days of application.
Property mutation is an important step that keeps your records clean and helps you pay your tax and bills effortlessly. If you are the legal owner of any property and have not completed this process, you can pay a nominal penalty fee to get it done. We hope this article helped you to have a clear understanding of the process of mutation, and its importance. If you are unable to make an informed decision, don’t hesitate to appoint a professional. They will get the work done for you in exchange for a service charge.