Mutation of Property: A Process That Makes Home Buying Easy

Buying a property is one of the most important financial decisions you will ever make in your life. Once you have registered the house in your name, it is important to get the mutation of the property recorded in government records. To understand more about the mutation of land meaning, significance, and procedure to download the Mutation Certificate, continue reading our blog. 

What is the Mutation of Property?

Property mutation is also known as "Dakhil Kharij" in Hindi. The land mutation meaning is that it enables the government to collect property tax from the rightful owner of the property. By mutating, the ownership of a property is transferred from one person to another after it is either purchased or inherited. Therefore, getting the mutation done and updating the new owner details in the revenue records is extremely crucial. These records are maintained by civic bodies like municipalities, municipal corporations, and panchayats.

Suggested Read: Property Tax Guide In India 2022 – Calculation, Types & Online Payment

Types of Mutations

1. Mutation of Agricultural Lands: Mutation is important here as without the mutation document, the land title will not be able to be passed on to the next owner. If the land is acquired and in the government records, the previous owner is still the real owner, then the released compensation will go to the previous owner. Because there is no mutation document, the new owner will be at a loss.

2. Mutation of Non-Agricultural Lands: This type of mutation of land records is generally for residential plots, houses, and flats. If the new owner fails to update the records and does not officially mutate, they will not be liable to pay electricity, water, or municipal taxes. 

Suggested Read: Topmost Factors To Help You Determine The Right Property Price

Importance of Mutation

It is essential to get the mutation done because of the following reasons:

• Property mutation is significant because it demonstrates ownership of the property.

• It is crucial for the further sale or transfer of the property and adds credibility to the real owners. 

• Mutation helps safeguard property records from fraud.

• A mutation of the property is important to prove the property is free from encumbrance.

• In cases of unauthorised transactions, the mutation document aids in the correction of record errors.

• In the event of no mutation of agricultural land, the ownership will not be passed on to the new owner. 

• The mutation of property documents acts as proof of the right owners and helps sell the property. 

Suggested Read: Online Property Registration Details and Documents

When is a Mutation of Property Required?

A mutation of the property is required whenever there is a change of title ownership in the following circumstances:

● Sale or purchase of a property

● Inheritance of property through a will or without a will

● Transfer of property otherwise, e.g., a gift deed

Suggested Read: Guide to Property Tax in Delhi

Documents Required for Mutation of Property

The documentation required for the completion of the mutation process varies by state. Nevertheless, a buyer has to submit the below-mentioned documents:

• Thoroughly filled property mutation documents 

• Copy of sale or title deed

• Affidavit on stamp papers 

• Indemnity bond

• Copy of the Aadhaar Card 

• Property of tax receipts 

• Copy of will or succession certificate

• If necessary, a copy of the death certificate

Suggested Read: Registration of property in Delhi 

Mutation of Property Charges

It differs from one state to the other. Still, some states generally charge a nominal fee, whereas others consider charging property mutation rates as a certain percentage of the property value. The range varies between Rs 25 and Rs 100. In some states, the cost is higher, which means they charge at least 1% of the property value as a property mutation charge. 

But one has to keep in mind that the property mutation fee is a one-time duty. 

Suggested Read: Frequently Asked Questions On Property Registration

Steps for e-Mutation Application