Why Property Mutation Matters!

A year ago, Sumit Vyas, a marketing professional, finally obtained possession of his new home. He soon made it official by getting his property registered. However, when Sumit went to pay the property tax this April, he was asked to produce the property mutation papers. And that was the beginning of one long nightmare for him.

We don’t want you to land up in the same situation as Sumit. To make things simpler for you, we have listed everything you will ever need to know about the mutation of property.

So, what’s property mutation?

It is the transfer of the title

In simple words, mutation is the change of title ownership in the records of sub-registrar’s office of the local municipal body. Every municipal body maintains a record of the property ownership to collect the property tax from the rightful owner.

Mutation papers are also required while selling a property.

The procedure

The procedure to get the property mutation is fairly simple if your documents are in place.

To apply for mutation, you just have to submit an application to the tehsildar of the area along with the required value of a non-judicial stamp paper.

Cases when you should get the property mutation

Case I: When you buy a property

If you have bought a new property, you should get the property mutation done after the registration. For the same, you need to submit the following documents:

• A copy of the Sale Deed 
• Application for mutation with the court fee stamp affixed on it 
• An indemnity bond on Rs 100 stamp paper
• An affidavit on Rs 10 stamp paper
• Receipt of up-to-date property tax payment 

Case II: When you inherit a property after the death of an owner

There might be a case where you become the legal heir of the property after the death of the owner. In such a scenario, you will need the following documents to get the mutation of the property.

• Death certificate of the deceased
• A copy of the will
• An indemnity bond on Rs 100 stamp paper
• A notary-attested Rs 10 stamp paper for an affidavit
• Receipt of up-to-date property tax payment 

Case III: When you buy a property through a power of attorney

If you have purchased a property through a power of attorney, you will need the following documents.

• A copy of the power of attorney papers
• An indemnity bond on Rs 100 stamp paper
• A copy of the will
• A Rs 10 stamp paper for the affidavit
• A property mutation application form affixed with the Rs 3-court fee stamp

Know about the penalty

Unlike TDS or property tax, the penalty for not getting property mutation is very low. While it varies from state to state, it can be as low as Rs 25. Having said that, it is always advisable to get all the documents in place.

Points to remember

It is not a legal document: Remember, mutation documents are not legally binding. However, it does stand as the proof of ownership and might act as a tax record.

Not a one-time job: Mutation of the property is not a one-time job.  These documents need to be updated from time to time. Experts suggest getting these papers updated once in every six months to make sure that your property records are clean.

Cities where you can get the property mutation online