Understanding Mutation Of Land In Its Simplest Form

When purchasing an immovable asset such as land, it is critical to follow the legal process to avoid future conflict. One of the legal steps is a land mutation, and here's everything about land mutation.

Real estate investments are typically accompanied by complex yet necessary documentation and a costly proposition. Mutation of land or property mutation in Government records is a critical process that must get completed after the registration of the relevant property.

A mutation is required in all cases of property transfers because it involves updating the new owner's title with the local authorities.

The property gets registered in the new owner's name in the land revenue department following the mutation process.

A mutation of land is required for water and electricity connections and for the Government to collect property taxes.

Understanding Mutation of Land

The land is a state subject, and each state records all land and property transactions. This document is significant because it serves as proof of ownership. It also assists the owner in protecting their property investments because the land records are registered, reducing the possibility of fraud. These records clearly show who owns the property and what encumbrances are against it. Buyers and investors must check these records to avoid fraud and complications.

The buyer must enter this information into the revenue records after purchasing a new property. Property or mutation of land also aids the state in determining tax liability. Various names in various states also know it. This process is also known as Dakhil - Khariz or entry-omission in Uttar Pradesh and Bihar states.

When is Land Mutation Done?

A mutation process must occur whenever a property changes ownership. Land or property mutation occurs under the following conditions:

• When you purchase land
• When you inherit the land
• When you receive land as a gift or through a will
• When you use a power of attorney to buy land

After completing the buying process of the property, including signing the selling document, the buyer must update the Government's land revenue department's records. The property mutation certificate should be obtained every six months, if possible, to ensure that the property hasn't been used in fraudulent transactions or mortgages.

Property mutation is required in all asset transfers, including:

• property sales and purchases,
• inheritance,
• property owner's death,
• gifts, and
• purchases made through Power of Attorney (PoA).

Following the completion of the mutation procedure, the asset is finally registered in the owner's name in the Government records.

How to Apply for Mutation?

Municipal governments in each state keep land records. So you must apply for property mutation in the area where you purchase the land or apartment. Several states have also made the process online accessible. However, the property owner must meet at the municipal office to complete the process.

The buyer must appear at the appropriate municipal office with all necessary documents. Following the submission of the documents, the relevant authority will conduct physical verification of the property, and the municipal office will issue the certificate once the verification is complete.

How to Apply for a Property Mutation Online?

• In some states, such as Bihar, the procedure can be completed online by logging onto the website.
• One must first access the official portal to apply for a mutation online and check previous records.
• Other states, such as West Bengal, have also announced plans to make the process available online.

Process for Mutation of Land

The documentation procedure for property or land mutation and the applicable fees differ from state to state. Some states, such as Bihar and Haryana, have begun an online mutation process; therefore, you should check to see if it is available in your state. However, the owner's physical visit to the municipal office must follow the online process.

The general procedure for the mutation of land or property is as follows:

Making an Application

The buyer must file a mutation application with the local civic body or revenue office. The application must include the following:

• The owner's personal information
• Property address
• Registration date
• Type of transfer (sale deed or gift) in the application form

Pay the Government-Prescribed Fees

A demand draught is required to pay the application fee, and the cost may differ from one state to the next.

Furnish the Required Documents

Attach the required documents to the application form and demand draught after you have paid the fee. A few other documents required for the mutation process are as follows:

• A copy of the sale agreement
• An indemnity bond and an affidavit
• Current receipt for property taxes
• A death certificate in the event of an inheritance or a Will
• A will or succession certificate's copy in the event of an inheritance

Application Processing

The revenue inspector or assessing officer will verify the documents once the owner has submitted all required documents. The officer may also inspect the property before proceeding with the application. After processing the request, a Mutation Certificate is usually issued.

A property's mutation is documented as evidence of property transfer. As a buyer, you should investigate the property's mutation to ensure that no fraud occurs.

Documents Required for Mutation of Land

The documents essential for the mutation of land include:

• Completed property mutation application form
• A copy of the sale deed
• Affidavit for Property Mutation on Stamp Papers
• Bond of indemnity
• Aadhaar Card Copies
• Property tax receipts
• In the event of property mutation after death, a copy of the owner's will, succession certificate, or death certificate (if applicable)

Property Registration Vs Mutation

Because the nature of property or land mutation and property or land registration appears to be similar, there is still ambiguity about the meaning of both processes.

When a property is sold, the buyer must pay the state's land and revenue department the applicable stamp duty and registration fees. Different states have different stamp duties and registration fees, and property registration is complete once the stamp duty and registration fees are paid. Property registration, in contrast to mutation, is a more immediate process and includes the creation of a 'Sale Deed.'

On the other hand, property or mutation of land occurs later and may take up to a year after the property is formally registered. A property buyer is responsible for changing the property documents to their name, and the buyer must approach the local land and revenue department for the mutation procedure.

Types of Mutations

Agricultural Land Mutation

In the case of agricultural land, the mutation is critical. Without mutation, the land title cannot get transferred to the new owner. The revenue records should record the mutation and the owner's name. This step is required because, in the event of government land acquisition, compensation is paid to property owners listed in the local authorities' revenue records.

Non-Agricultural Land Mutation

Non-agricultural property, such as flats, independent houses, and residential plots, among others, can be mutated at any time after the property is registered.

Failure to mutate does not revoke the right granted in the sale deed. It means that the purchaser's title will be unaffected, and they will continue to be the property's owner. On failing to mutate in these structures, the owner will not receive electricity or water and will not be required to pay municipal taxes.

While the process is voluntary in this case, a mutation certificate is required during the resale of a property, and the absence of it could jeopardise the sale.

Significance of Mutation Records

A property's mutation is just as crucial as its registration, and it benefits the authorities and the new property owner. Here are some of the benefits of mutation records.

• The mutation records assist government officials in charging the rightful owner for property taxes and other levies.
• The mutation records are instrumental in correcting errors in land records or reporting unauthorised transactions on your property.
• It aids in the sale of a newly acquired property because prospective buyers may request a mutation certificate.
• The sale of agricultural properties cannot occur without a land mutation certificate.
• It is reliable proof of property ownership.

To Conclude:

New buyers must undergo several legal procedures to obtain land or property ownership. Among these is property or land mutation related to the transfer of title in government records.

Property mutation or mutation of land is a legal process required for anyone who buys property or land. Because the papers in the owner's name serve as proof of ownership and are required for various reasons, the mutation is essential. Aside from ownership, this law affects property taxation, so new and experienced real estate investors should be cautious. This procedure is pretty straightforward. To complete your land or property mutation, follow the steps outlined in this article.