Mutation of Property

Mutation of Property

Buying a property (home/plot/land) is among the most significant decisions that you’ll ever make. Purchasing a property involves lots of money which is a major money decision.

When buying a house, due diligence is important, and you’ve to verify lots of important property documents. Khata or Patta or mutation is one such important property document.

When you’re selling a property, the potential buyer might request a copy of the latest mutation document. It’s been observed that lots of people don’t know the value of this document.

So, let’s discuss – What is mutation / Patta/ Khata? The difference between property registration and Mutation. What is the procedure to obtain mutation of property done? How to apply mutation of property?

What is Mutation of Property?

Mutation stands out as the change of title ownership in one person to another when the property is sold or transferred.

By mutating a house, the new owner will get the title of the property documented on his/her name within the land revenue department and also the government is capable of charge property tax to the rightful owner.

One should get mutation done and obtain the new owner details updated within the revenue records maintained by local bodies like Municipalities, Panchayats or Municipal Corporations.

Mutation Vs Registration of Property

Registration of the property is a complete and final agreement signed between two parties, i.e., seller and buyer. When a property is registered, this means the property buyer whose favor the home is registered will becomes the authorized owner of the property, and it is entirely responsible for it in most respects. The new owner is likely to pay for property taxes, development charges, etc. that are levied through the local civic body.

When the property is registered in Sub-registrar office, the customer of the property has to obtain the title of the property updated in his/her name from local revenue office (municipality or panchayat office). This is called mutation. When the property is updated within the revenue records, henceforth the new owner needs to pay for applicable taxes towards the civic body (like property tax, development charges, etc.,).

So, registration of property and mutation of property are two various things. Mutation of property happens after registration of the property.

Registration of property with the execution of the Sale Deed is performed at Sub-registrar office (Registration office), and mutation is done at local civic body office. Registration of the property doesn’t lead to the automatic update of land records in revenue office.

Types of Mutations

There are two types of mutations.

  1. Mutation of Agricultural Lands &
  2. Mutation of Non-Agricultural Lands. Example: Flats, independent houses, residential plots, etc.

In the case of Agriculture lands, mutation is a must. Without mutation, the land title won’t pass to the new owner. The mutation should be joined within the revenue records. The owner’s name that is registered in the revenue records is referred as ‘Pattadhar.’ In scenarios like land acquisition through the Government then your compensation is paid only to the person whose name exists in the revenue records.

In the situation of non-agriculture lands, failure to mutate doesn’t remove your right in the sale deed. That’s although the mutation hasn’t done, the purchaser’s title won’t be affected. He/she will remain the owner of the property. But the only issue of not mutating is that you may not get an electricity connection, water connection and also you cannot pay municipal tax.

When Mutation of property can be done?

You need to get the transfer in title of property (mutation) completed in the below conditions to prevent any legal disputes in future.

  • After buying/purchasing a property.
  • After inheriting a property via a Will or with no Will.
  • After obtaining a property via a Gift Deed.

What is the right Procedure for Transfer of Title of Property in Revenue Records? (Mutation procedure)

Kindly note that the documentation procedure for mutation of property and the applicable fees varies from one State to another. Below is the general procedure;

  • Application: You (buyer/new owner) must submit an application at the local civic body (to Tehsildar) or revenue office. In the application, you might want to provide personal information, property address, registration date, type of transfer (gift/registered purchase deed/Will deed, etc.), property particulars, etc.,
  • You need to pay relevant charges through Demand Drafts. (The relevant Khata transfer fee is 2% of Stamp duty that you have paid when registering the property. Fee varies from one state to another.)
  • Enclose the appropriate documents combined with application and DDs.

o    Copy of Sale Deed

o    Latest property tax receipt

o    Indemnity Bond & Affidavit

Documents required for mutation in case of inheritance or Will are as below;

  • Copy of Will or Succession Certificate
  • Death Certificate
  • Latest property Tax paid receipt
  • Indemnity bond & Affidavit
  • Copy of Sale Deed etc.,

After you submit all of the needed documents, the assessing officer (or) revenue inspector will check the documents, may go to the property and can process the application. They’ll issue Mutation Certificate / Khata Certificate after processing your application.

When your name is updated within the revenue records, you may apply for Khata Extract or mutation extract to ensure the details. Here is a sample Mutation Extract.

Important points & FAQs

The following are the important points on mutation of property

  • Mutation of the property is essential whether the property is a piece of land or building. But mutation on land is extremely important.
  • Patta land or property where the up-to-date mutation is performed can be easily sold.
  • If the property is jointly owned then, mutation can be issued jointly in the name of all co-owner.
  • If you are the first owner of the property (as an example, property acquired inside a Govt e-auction), you need to ‘register’ your name in the land revenue records. So, in this situation it’s not ‘transfer’ of the title of property.
  • If you want to check if a house has free title/possession (or) whether it’s mortgaged or otherwise, you need to make an application for an Encumbrance Certificate. You can cross check mix-check these possession details by taking a Mutation Extract. (Mutation Extract is an extract in the mutation register maintained through the Village Panchayat Accountant or local civic body office. It records the transfer of land and also the mode of these transfers, recommendations of the Assessing Officer for such transfer, date of entry of transfer and also the record of legal rights.)
  • Is mutation mandatory after Registration of Property? – No, it’s not compulsory. But it’s very important.
  • If the mutation isn’t done, does that mean the title of the property is not transferred from seller to buyer, despite registering the Sale Deed? – The title will get transferred to the customer, but mutation of records is easier to show the possession of property.
  • What if a person does mutation of land/property in his/her name illegally? Will he/she be the new title holder? – By just transferring the name in mutation records, one cannot declare that he/she’s title towards the property. Kindly observe that with no registered sale deed on his/her name, mutation is invalid and illegal.