Why Knowing Mutation of Property is Critical for Home Buyers

If you recently purchased a new home or are planning to do so, you might have come across a lot of jargon and terms related to housing, finance and legality. From stamp duty to home loan foreclosures, each common term in the business of buying a house becomes an integral part of the process. However, what about mutation of the official revenue records with respect to a purchase of property?

In India, getting a property’s revenue records mutated is incredibly important with respect to your title to the property. In fact, if one is planning to sell his or her home in the future, having or not having the mutated document can make a transaction tenuous and impact the marketability of the property. So, what is mutation of property in the ownership documents?

Also known as Daakhil Kharij colloquially, mutation of property is the transfer of ownership of a property from an existing to owner to a new owner when the property is transferred by way of gift deed, inheritance, will, partition, or sale. This way, the new owner can get the home recorded in his or her name at the land revenue department, thus enabling the government to charge property tax to the rightful owner.

Therefore, suppose you recently bought one of the best flats in Mumbai recently, then you must get the revenue records mutated in your favour as soon as possible. Doing so will enable you to pay the property tax properly and avoid any penalty or interest that might be generated due to not having the mutated document. It is also crucial in establishing your title to the property purchased.

Now, the procedure for applying for a mutation of the revenue records is different in different states. The same goes for the penalty for not having this done. However, as a new buyer of a home, this is what you can expect to do while getting this process completed:

·         If you have purchased the home, then you need to submit an application of mutation with court fee fixed stamp, sale deed, indemnity bond on stamp paper of requisite value, and the latest receipt of your property tax payment.

·         If you have purchased the home via power of attorney, a copy of the will, a copy of the power of attorney, indemnity bond, an affidavit, latest property tax clearance papers, and the mutation application should be submitted. 

·         If you are the heir to the property after the death of the rightful owner, then, you need to produce a death certificate along with a copy of the will, the application with fee fixed stamp, an indemnity bond, an affidavit on a stamp paper attested by the notary, and, of course, the latest proof of your property tax clearance.

Please remember that it is the responsibility of the buyer and not the seller to get the revenue records mutated. After receiving the critical documents pertaining to the purchase of the house, such as NOC, sale agreement, registry, etc. the buyer must submit these documents for mutation of his or her property. This is the usual way to getting this procedure completed, whether you have bought a penthouse amongst lavish  apartments in Thane or a flat in Navi Mumbai.

Additionally, in order to keep your new property’s record clean with the authorities, you must update your  property’s revenue records from time to time – ideally every 6 months.