Mutation of the Property and its Importance
Oct 11, 2019 Home Trading Steps
Buying s property involves a lot of paperwork that can be tedious. The general perception that one only needs to fill out the loan papers and property documentation for the property purchase is highly misunderstood. Apart from the paperwork, one needs to take care of the name transfer and mutation of the property.
We discuss everything you need to know about the mutation of property and its importance:
What is the mutation of property?
The local municipal keeps a track of the property ownership and the tax related to it. The mutation of the property helps in making sure that the property has been transferred from the previous owner to the new owner and what are the tax liabilities of the property. Even though it is not a legal document, it is an important document when it comes to selling the property. It is also called Daakhil- Kharij.
What is the procedure?
Every state has its own set of rules and procedure for the mutation of property and it is the responsibility of the buyer to check with the same. However, some circumstances are valid across the country, where you will have to submit the mutation of the property.
If you have bought the property: the mutation of the property one will have to submit certain documents including a copy sales deed, an application for the mutation of the property with a stamp of Rs 3 on it, an indemnity bond on Rs 100 stamp paper, an affidavit of Rs 10 stamp paper and the latest property tax clearance papers.
If you are the heir: you are the legal heir of the owner of the property then you will have to submit the death certificate of the owner after their demise, a copy of will, an indemnity bond on a Rs 100 stamp paper, an affidavit on Rs 10 stamp paper attested by a notary, and the latest property tax clearance papers.
If the property has been bought through power of attorney: this case you will have to submit a copy of the power of attorney papers, a copy of the will, an indemnity bond on Rs 100 stamp paper, an affidavit on Rs 10 stamp paper, and the latest property tax clearance papers, along with an application with Rs 3 court fee stamp affixed on it.
Things to remember:
We discuss everything you need to know about the mutation of property and its importance:
What is the mutation of property?
The local municipal keeps a track of the property ownership and the tax related to it. The mutation of the property helps in making sure that the property has been transferred from the previous owner to the new owner and what are the tax liabilities of the property. Even though it is not a legal document, it is an important document when it comes to selling the property. It is also called Daakhil- Kharij.
What is the procedure?
Every state has its own set of rules and procedure for the mutation of property and it is the responsibility of the buyer to check with the same. However, some circumstances are valid across the country, where you will have to submit the mutation of the property.
If you have bought the property: the mutation of the property one will have to submit certain documents including a copy sales deed, an application for the mutation of the property with a stamp of Rs 3 on it, an indemnity bond on Rs 100 stamp paper, an affidavit of Rs 10 stamp paper and the latest property tax clearance papers.
If you are the heir: you are the legal heir of the owner of the property then you will have to submit the death certificate of the owner after their demise, a copy of will, an indemnity bond on a Rs 100 stamp paper, an affidavit on Rs 10 stamp paper attested by a notary, and the latest property tax clearance papers.
If the property has been bought through power of attorney: this case you will have to submit a copy of the power of attorney papers, a copy of the will, an indemnity bond on Rs 100 stamp paper, an affidavit on Rs 10 stamp paper, and the latest property tax clearance papers, along with an application with Rs 3 court fee stamp affixed on it.
Things to remember:
- One should know that a very nominal penalty is charged, Rs 25 if one fails to get the mutation of the property done.
- It is an important document when it comes to selling the property.
- Even though it is not a legal document, the mutation of the property is important proof of ownership and property tax payment.
- Property mutation charges differ from state to state.
- It is not a one-time work; the papers need to be updated regularly to make sure that the ownership is clear.
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