The Importance Of Property Mutation

What Is Property Mutation?

Confusing as it may sound, property mutation is the simple act of changing the title ownership of a property, under particular circumstances. These circumstances may be anything from inheritance to sale or purchase of property, death of the owner or when the concerned property is bought via a Power of Attorney (POA).

So How Do We Do It?

The process of property mutation differs slightly in certain cases. The process involved under various circumstances are as follows:

When you inherit a particular property, you will be required to submit a written application, sign an indemnity bond which must be submitted to the concerned authority, along with copies of a death certificate, will, or an affidavit attested by a notary, and documents that prove the property tax has been paid in full till date.

In case of a sale or purchase, the same procedure needs to be followed, and in addition, you also need to pay an amount of transfer. This amount differs from place to place.

In the event of a sale or purchase via POA, in addition to the above documents, you will also be required to submit an extra copy of the POA and the registered receipt of the payment by the sub-registrar. After all this is done, an assessing officer will check the documents and the name of the new owner will be cleared.

If only a part of the property has been sold, the mutation may be allowed in the name of the purchaser, upon payment of tax for the portion till date.

How Important Is This Procedure?

Property mutation is basically used to determine the person under whose name the property tax is to be paid. But it is also quite vital when it comes to settling legal issues regarding the said property. Before purchasing any property, you need to check the property’s past mutation records. This helps determine who holds the title to the said property, and whether the property tax has been paid till date or not.

Though this is not conclusive proof of the title of ownership, it is important for many reasons. If, for example, land is acquired by the government, the acquisition funds will be released in favor of the person whose name is stated in the mutation, even if the registry of the land is in another person’s name. This document will also help you with the process of obtaining a house loan or any other loan against your property. If a clear, up-to-date property mutation is not produced, it can lengthen the process considerably.

If the property mutation is not updated regularly, then you will lack a clear title to the property. This can raise a number of legal issues, if and when you decide to put your property up on the market for resale.