A mutation is the method of change of title ownership from one person to another when the property is transferred or sold.
A mutation needs to be carried out in all cases of property transfers such as sale or purchase of property, gift, the death of the property owner and even a purchase made through Power of Attorney (PoA). Following the mutation process, the new owner acquires the title of the property registered in their name in the land revenue department and enables the Government to charge property tax. Mutation becomes essential for deciding the tax liability when the property owner is changed.
Types of Mutations
There are two types of mutations.
1. Mutation of Agricultural lands – Mutation is essential in the case of agricultural lands. You cannot pass the land title to the new owner if the mutation process is not followed. The mutation and the owner’s name should be entered in the revenue records. In the case of land acquisition by the Government, the compensation is granted to only those individuals whose name is registered in the revenue records.
2. Mutation of Non-agricultural lands - In case of non-agricultural lands such as flats, independent houses, residential plots, etc. a failure to mutate does not take away the right in the sale deed. This implies that the purchaser’s title will be unaffected, and they will remain the owner of the property. If the owner does not mutate in these structures, they will not receive electricity and water connection and are not liable to pay the municipal tax.
The documentation procedure for mutation of a property and the applicable fees varies from one State to another. The general process for conversion of a property is –
• Submitting an application - The buyer is required to apply for mutation at the local civic body or revenue office. Besides, mention the particulars of the owner such as personal details, property address, registration date and types of transfer (if it is a sale deed, a gift, etc.) in the application form.
• Payment of fees- An application fee is required to be paid through Demand Draft. The price may vary from one State to another.
• Enclosing the documents – After the payment of the fee, attach the required documents along with the application form and demand draft. Few other documents which are necessary for carrying out the mutation process are –
- A copy of the sale deed
- Indemnity bond and an affidavit
- Current property tax receipt
- A death certificate in case of inheritance or Will
- Copy of Will or succession certificate in case of inheritance
• Processing of application - Once the owner submits all the required documents, the revenue inspector or assessing officer will verify the documents. The officer may also inspect the property and will then process the application. In most cases, a Mutation Certificate is issued after processing the request.
Mutation of the property is documented, representing evidence of transfer of property. Irrespective of the change of ownership, the person should also check for mutation with revenue office on time to ensure there is no legal fraud taking place.