Mutation records do not confer the title of a property on anyone and the ownership has to be established independently, in a declaratory suit, the Supreme Court has opined. This reiteration by the SC came, while rejecting a special leave petition filed by the Bruhat Bengaluru Mahanagara Palike. In 2019, too, the SC had, while passing its judgement in the Bhimabai Mahadeo Kambekar versus Arthur Import and Export Company, said that the mutation entries of revenue records did not create or extinguish title over the land, nor did such entries have any presumptive value on the title of such land.
What is the Mutation of Property?
Mutation of property is the process of transferring the ‘Title’ to the new property owner. The property tax mutation also means that the new property owner will be responsible for paying the required property tax from that point forward. Property mutation, also known as “Dakhil Kharij” in Hindi, is the process of transferring title ownership from one person to another when an asset is sold or transferred.
When is property mutation done?
- When you buy a property.
- When you inherit a property.
- When you receive a property through a gift or a will.
- When you purchase a property through a power of attorney.
Importance of property mutation
- Property resale: This is an important document that is necessary when you wish to sell your property.
- Confirms legal ownership: This is the legal method in which property is transferred from seller to buyer during a property purchase. So, when mutation is in place, one can establish the right property owner.
- No litigations: Since ownership is established in a transparent manner, there are no litigations or fights around property regarding the ownership. This also prevents the existence of double dealing of property where the same property is sold to two different people because of absence of legal documents.
- Documents as proof: In order to pay electricity bill, water bill and also use these as proof of identity for the various purposes, it is important to do mutation of property.
- Property tax: This document is also required to know and pay property tax on time. Failure to pay property tax on time may result in penalty or even allowing the municipal body to attach your property.
How is property mutation done?
- The buyer must appear in the municipal office, along with all the documents.
- Following the submission, the department would conduct a physical verification of the property and then, issue the property mutation certificate.
- As a lot of states now allow you to complete property mutation online, you can simply visit the official portal concerned, to go ahead with the process.
- You could also check the previous mutation or ‘dakhil kharij’ records online, by visiting the official portal and providing the details of the property and the owner.
What documents are required for mutation of property?
Correctly filled property mutation application form
*Copy of the sale/title deed
*Affidavit on stamp papers
*Indemnity bond
*Copy of Aadhaar Card
*Property tax receipts
*Copy of will or succession certificate or death certificate of the owner (if applicable)
FAQs
Is mutation of property mandatory?
Yes, mutation is necessary to ensure that the property tax records reflect the new owner’s name. However, failure to mutate the property does not affect ownership rights, but it may cause complications in future transactions, such as sale or inheritance.
Why is mutation of property important?
- Establishing legal ownership of the property.
- Paying property taxes in the new owner’s name.
- Maintaining updated land records with municipal or revenue authorities.
- Avoiding future disputes related to ownership.