What is Mutation of Property? How to apply for Mutation of Property?

Buying a property (home/plot/land) is one of the most important decisions that you will ever make. Buying a property involves a lot of money and it is a serious money decision.

When buying a property, due diligence is essential and you have to verify a lot of important property documents. Patta or mutation or Khata is one such important property document.

When you are selling a property, the prospective buyer might ask for a copy of the latest mutation document. Based on my experience, it has been observed that many people do not know the importance of this document.

So, let’s discuss about – What is mutation / Khata / Patta? Difference between property registration & Mutation. What is the procedure to get mutation of property done? How to apply for mutation of property?

What is Mutation of Property?

Mutation is the change of title ownership from one person to another when the property is sold or transferred. By mutating a property, the new owner gets the title of the property recorded on his/her name in the land revenue department and the government is able to charge property tax from the rightful owner.

One needs to get mutation done and get the new owner details updated in the revenue records maintained by civic bodies like Municipalities, Panchayats or Municipal Corporations.

Mutation Vs Registration of Property

Registration of the property is a full and final agreement signed between two parties ie., buyer and seller. Once a property is registered, it means that the property buyer in whose favor the property is registered will become the lawful owner of the property and is fully responsible for it in all respects. The new owner is liable to pay property taxes, development charges etc which are levied by the local civic body.

Once the property is registered in Sub-registrar office, the buyer of the property has to get the title of the property updated in his/her name in the local revenue office (municipality or panchayat office). This is known as mutation. Once the property is updated in the revenue records, henceforth the new owner has to pay the applicable taxes to the civic body (like property tax, development charges etc.,).

So, registration of property and mutation of property are two different things. Mutation of property happens after the registration of property.

Registration of property through the execution of a Sale Deed is done at Sub-registrar office (Registration office) and mutation is done at local civic body office. Registration of the property does not lead to automatic update of land records in revenue office.

I believe that some States like Andhra Pradesh are planning to integrate both the Registration & the Revenue departments, so that the land records are automatically updated in revenue dept (mutation) as soon as the property registration is done at the Registration office.

Types of Mutations

There are two types of mutations.

1. Mutation of Agricultural lands &
2. Mutation of Non-Agricultural Lands. Example : Flats, independent houses, residential plots, godowns, etc.,

In case of Agricultural lands, mutation is must. Without mutation the land title will not pass to the new owner.  Mutation should be entered in the revenue records.  The owner’s name which is recorded in the revenue records is referred as ‘Pattadhar’. In scenarios like land acquisition by the Government then the compensation is paid only to the individual whose name is present in the revenue records.

In case of non-agricultural lands, failure to mutate does not take away your right in the sale deed.  That is even though the mutation has not done, the purchaser’s title will not be affected.  He/she will remain the owner of the property.  But the only problem of not mutating is that you may not get electricity connection, water connection and you cannot pay municipal tax.

When Mutation of property can be done?

You need to get the transfer of title of property (mutation) done in the below circumstances to avoid any legal disputes in the future;

• After buying/purchasing a property.
• After inheriting a property through a Will or without a Will.
• After acquiring a property through a Gift Deed.

What is the Procedure for Transfer of Title of Property in Revenue Records? (Mutation procedure)

Kindly note the documentation procedure for mutation of property and the applicable fees varies from on State to another. Below is the general procedure;

• Application : You (buyer/new owner) has to submit an application at local civic body (to Tehsildar) or at revenue office. In the application form, you may have to provide personal details, property address, registration date, type of transfer (gift/registered sale deed/Will deed etc), property particulars etc.,
• You have to pay applicable fees through Demand Drafts. (In Bangalore the applicable Khata transfer fee is 2% of Stamp duty that you have paid when registering the property. The fees varies from one state to another.)
• Enclose the required documents along with the application and DDs.
  • Copy of Sale Deed
  • Indemnity Bond & Affidavit
  • Latest property tax receipt
• Documents required for mutation in case of inheritance or Will are as below;
  • Death Certificate
  • Copy of Will or Succession Certificate
  • Indemnity bond & Affidavit
  • Latest property Tax paid receipt
  • Copy of Sale Deed etc.,
• Once you submit all the required documents, the assessing officer (or) revenue inspector will check the documents, may visit the property and will process the application. Generally they will issue Patta Certificate / Mutation Certificate / Khata Certificate after processing your application.
  • Below is a sample Khata certificate issued by BBMP (Bruhat Bengaluru Mahanagara Palike) (Click on the image to open them in new browser window)
  • Below is a sample Mutation certificate issued by a local municipality in Andhra Pradesh.
• Once your name is updated in the revenue records, you may apply for Patta extract or Khata Extract or mutation extract to verify the details. Below is a sample Khata or Mutation Extract.

Important points & FAQs

Listed below are some of the important points on mutation of property;

• Mutation of property is very important whether the property is a piece of land or a building. But mutation on land is very essential.
• Patta land or property where up-to-date mutation is done can be easily sold.
• If the property is jointly owned then mutation can be issued jointly in the name of all co-owners.
• If you are the first owner of the property ( for example, property acquired in a Govt e-auction), you have to ‘register’ your name in the land revenue records. So, in this case it is not ‘transfer’ of title of property.
• If you would like to check if a property has free title/ownership (or) whether it is mortgaged or not, you have to apply for  Encumbrance Certificate. You can cross-check these ownership details by taking a Mutation Extract. (Mutation Extract is an extract from the mutation register maintained by the Village Panchayat Accountant or local civic body office. It records the transfer of land and the mode of such transfer, recommendations of the enquiry /Assessing Officer for such transfer, date of entry of transfer and the record of rights.)
• Is mutation mandatory after the Registration of Property?  – No, it is not mandatory. But it is very essential.
• If mutation is not done, does that mean title of property is not transferred from seller to buyer, even after registering the Sale Deed? – The title gets transferred to the buyer but mutation of records is always better to show the possession of property.
• What if someone does a mutation of land/property in his/her name illegally? Will he/she be the new title holder? – By merely transferring the name in mutation records, one cannot claim that he/she has title to the property. Kindly note that without a registered sale deed on his/her name, mutation is invalid and illegal.

I hope you find this post interesting and useful. Kindly share your comments.

Continue reading other Real-estate articles;

1. All you need to know about Property Encumbrance certificate (EC)?
2. 5 ways of transferring Real Estate Property!

(Image courtesy of phanlop88 at FreeDigitalPhotos.net) (Post published date : 26-April-2016)