What Is Mutation of Property and Why Is It Important?

The registration of a property does not conclude the ownership formalities, and mutation of property is the next step, through which a new owner’s name will be entered in the official records maintained by the municipal or revenue authorities.

This implies only taxation, utility connections, and acknowledgement of possession. Thus, one must know the scope of mutation and the significance of the same to an owner, so that he/she can fulfill the statutory requirements and safeguard his/her interests.

What Is the Mutation of Property?

Mutation of property refers to the process of updating land or municipal records in respect of the change of ownership of a property. The transfer could arise from sale, inheritance, gift, partition, or any other means of property transfer.

Simply put, mutation means changing the name of the new owner in records maintained by government authorities such as the municipal corporation or local revenue department, thereby striking out the name of the old owner.

Mutation of Property Meaning

The mutation of property meaning refers to the legal acknowledgment of the change of ownership through public records for collecting property taxes and revenues. A mutation in itself does not vest title; it merely reflects a change of ownership which has already been created and established by either a registered document or lawful inheritance.

Why Is the Mutation of Property Important?

The mutation process serves a number of administrative and even judicial functions. It’s not meant to act as an alternative to registration of properties; it just acts as a route through which ownership rights can be exercised with ease and comfort.

Every aspect reflects the importance of mutation:

Property Tax Assessment

It means a way for municipal authorities to assess property tax in the name of the real owner.

Proof of Possession for Civic Authorities

Authorities would rely on mutated records for deciding whom to provide things like water supply or electricity service, or offer municipal services.

Legal Recognition in Revenue Records

The mutation entries often arise when there are disputes concerning land and revenue proceedings.

Ease of Sale or Transfer

There would be fewer hassles in selling or claiming property by inheritance or bank loans on a mortgaged property.

Avoidance of Future Disputes

In any case, there will be conflicting Claims if it is not mutated, especially in cases of inheritance or for jointly owned properties.

Types of Mutation of Property in India

Mutation means a change of ownership in simple terms, and it is broadly divided into two categories based on the reasons for the ownership change.

Mutation Through Sale or Transfer

It happens when ownership information is changed due to:

Sale deed.

Gift deed.

Exchange deed.

Relinquishment deed.

This kind of mutation relies on a registered document.

Mutation Through Inheritance

It pertains to cases arising out of:

Death of the owner, or

Will or succession statutes.

Mutation under this is made based on the legal heir certificates, the succession certificates, or probated wills.

Documents Required for Mutation of Property in MCD

The requirements for documentation under MCD for the mutation of property falling under its jurisdiction are as follows:

Application for mutation (in prescribed format).

Registered sale deed/conveyance deed.

Latest property tax receipt.

Copy of possession letter.

Identity proof of the applicant.

Affidavit on stamp paper.

Indemnity bond.

Death certificate in case of inheritance.

Will/succession certificate, if any.

The authority may request some more documents depending upon the mode of transfer.

How to Do Property Mutation in Bangalore?

In Bengaluru, mutation of urban property is done by the Bruhat Bengaluru Mahanagara Palike (BBMP) and mutation of lands is done by the Revenue department.

The procedure of Property Mutation in Bangalore is as follows:

Application for mutation:

The applicant has to apply at the BBMP office or online.

Annexure of Documents:

Registered deed, tax payment receipts, and identity proof are requirements.

Official Verification:

Verification by BBMP officials of the submitted documents with inspection on the field, and so on, would take place as required.

Fee Payment for mutation:

The respective mutation fees are to be deposited.

Issuance of Khata Transfer:

Khata transfer takes place post the property mutation, and a new Khata will be issued.

Bangalore mutation generally refers to Khata transfer.

What Is the Mutation Fee in Bangalore?

In Bangalore, the mutation fee is generally levied in terms of a percentage of the property value mentioned in the sale deed.

Mutation fee: 2% of Stamp Duty paid

Khata transfer fee: Generally, 2% of the property value for BBMP records

Actual fees may vary the type of property and jurisdiction.

Time Limit for Mutation of Land

The mutation time limit varies from one state to the other or according to the local authority. However, most revenue departments prescribe that mutation should be applied for, at least:

3 to 6 months from the date of registration or the death of the owner.

Delays may attract penalties or a more inquisitive examination, especially in the case of agricultural or revenue-generating land.

How Long Does Mutation Take?

Mutation time varies with the type of transfer authority, type of transfer, etc.

Urban municipal properties shall take 15-30 working days.

Revenue land or inheritance cases: 30-90 days.

Disputed cases or incomplete documentation may take more time

Although applicants can track the mutation status in many cities via municipal portals.

Can I Sell Land Without Mutation?

A sale deed that has been drawn up and registered serves as evidence of rights; selling land without mutation is frowned upon.

Risks Related to Selling Land Without Mutation:

Banks might reject a loan.

The buyer might insist that the property must first be mutated before buying.

Legal dispute risks are higher.

Registration and resale delays.

Mutation is usually seen as not completely foolproof, but it theoretically guarantees a good marketable title.

Legal Value of Mutation Records

It’s important to note that mutation records:

Do not create ownership

Do not overwrite registered documents

Serve as evidence of possession and payment of land revenues

Conclusion: Mutation of Property

The courts rely upon registered deeds, but the mutation entries buttress the ownership claim.

All property owners in India must understand the importance of the mutation of Property as a consideration. Mutation ensures the formal transfer of ownership in official records for the subsequent imposition of taxes, the availment of civic services, and the elimination of future hassles in the transactions. Mutation is, thus, not to replace registration of the property but to legitimize it administratively.

A mutation can sanitize a property from disputes if done promptly as per documentation requirements and knowledge of local procedures. Property mutation, beyond doubt, is one of the most vital steps one takes as far as property ownership is concerned, whether it be Bangalore or Delhi or any city in the length and breadth of India.

FAQ’s

What does property mutation mean?

Property ownership mutation in India includes post-sale or after legal inheritance, updating government and municipal records to reflect the ownership changes.

How to do property mutation in Bangalore?

The property mutation in Bangalore will be processed by the BBMP, managing the application for mutation with the attached relevant documents, such as the registered deed, the property tax receipts, and other necessary fees for Khata transfer.

What is the mutation fee in Bangalore?

According to BBMP, the mutation charges in Bangalore generally charge 2% of either the value of consideration or the stamp duty paid, as the case may be.

Can I sell a land without mutation?

In fact, under certain special circumstances, immovable property may be transferred without a mutation. It is, however, inadvisable to sell the asset without the mutation since it throws up legal, financial, or documentary consequences.

How long does mutation take?

Time for mutation after verification is usually around 15-30 days in case of urban property cases, while claims based on land or inheritance sometimes take up to 90 days.