Property Mutation After Registration: Meaning, Process, Documents & Importance in India

Often, when we purchase a house and get the property registration in our name, we tend to believe that we have successfully completed all procedures regarding the purchase of property. There is, however, yet one more step left. It is called the property mutation process.

Property mutation, or Dakhil Kharij, as it is commonly called in most parts of India, is defined as a process of updating the government's records regarding properties by changing the names of the owners from old to new. Property mutation refers to the procedure by which the ownership name gets updated in revenue records when someone buys a property. In spite of the transaction being recorded legally in the registered deed during the process of registration, the name of the old owner could still feature in the revenue or municipal records.

It means that property registration is simply an act of recording the property transaction, whereas mutation is the process through which the government records are updated with respect to the new owner’s name.

Both of these have different applications and play an important role in keeping property records up-to-date. In this article, we will discuss the process of property mutation post registration and its significance, procedure, documents required, fees, and many more things that you need to know before undergoing property mutation in India.

What Is Property Mutation After Registration?

The transfer of property title from one individual to another in the records of the local municipal corporation or government is called property mutation (referred to as Dakhil Kharij in many areas of India).

Whereas property registration involves the transfer of the title from one individual to another via a sale deed, the mutation process follows after the property registration to update the revenue records so that the property tax can be generated in the new owner's name.

There are generally two types of property mutation:

Mutation of Urban Property: This helps to update the records in connection with urban property taxes.

Mutation of Agricultural Property: This changes the land title in the revenue records (Khasra / Khatauni), which is vital in transferring the ownership of the land.

Why Is Property Mutation Important?

The registration of the property is often believed to be the last stage of buying by many property owners. Property mutation is an equally important process that helps the concerned government department update the record of ownership of the property.

There are various reasons why property mutation is significant:

• Legal Proof of Tax Liability: It will ensure that you are listed as the legal taxpayer for the property in official documents.

• Protects Against Fraudulent Resales: The new records of revenues make it almost impossible for a past owner or an unauthorised person to sell the property again.

• Utility Connections Need It: For obtaining utility connections in your name, one might need evidence of property mutation.

• Resell Easily: Banks, as well as future buyers, verify the mutation of properties in municipal records prior to giving out loans or selling.

Property Registration vs Property Mutation

It is easy to confuse these two terms, but they serve two distinct purposes under Indian law:

When Should You Apply For Property Mutation?

The property mutation process should be started immediately after you get your registered sale deed. It will ensure that the records held by the government with regard to the property are updated with the name of the new owner.

Common situations in which property mutation is required include:

After Purchasing a Property: You should apply for property mutation after getting the flat/plot/house/commercial property registered under your name. It is important to get the mutation done.

Ownership Change Due to Inheritance or Execution of Will: Mutation of property is necessary when property devolves on lawful heirs or beneficiaries of the deceased owner.

Gift of Property: File for property mutation if there is a transfer of property through a registered gift deed, depending on the requirements of the local jurisdiction.

Transfer by Power of Attorney (POA): In case the transfer of property happens via an authorised POA, the respective property mutation formalities need to be fulfilled.

Property Mutation Process After Registration

Mutation of a property after the registration process requires an amendment of the official documents to add the new owner’s name. This process usually involves the following steps, despite variations according to different states and types of property.

Application for Mutation: Apply by filling out the mutation application form at your nearby municipal corporation or revenue office (Tehsildar office).

Documents Required: Submit copies of your sale deed, tax certificates, and proof of identity.

Public Notice & Inspection: In several states, the revenue department releases a public notice (for a period of 15-30 days). A revenue inspector can also make an on-site inspection of the property.

Approval & Issue: Provided that there are no objections, the authority approves the application and issues a mutation certificate.

Documents Required for Property Mutation

Ensuring that you have everything ready in terms of paperwork will assist in a more efficient process for property mutation. Depending on the jurisdiction and local municipality, the standard property mutation documents usually include:

• Registered copy of sale deed or gift deed.

• Power of Attorney (if any).

• Mutation form application for property (filled form).

• Identity Proof & Address Proof (Aadhar card, PAN card, passport or voter ID).

• Latest receipt of property tax paid.

• Affidavit & Indemnity bond on non judicial stamp paper.

• Death certificate and will / succession certificate (in case of inheritance).

How to Apply for Property Mutation Online?

A number of Indian states have now made available easy-to-use property mutation procedures online via the state land portal websites (e.g., Dharani for Telangana, Bhoomirthi/Banglarbhumi for West Bengal, Meebhoomi for Andhra Pradesh, or even municipal websites such as MCD in Delhi).

Here is a general guide to applying online:

• Portal Visit: Visit the official website for the municipal or state land revenue.

• Login/Registration: Either log in or register yourself on the portal.

• Choose Mutation Services: Find the option for applying for a Property Mutation Application or Change of Ownership.

• Provide Information: Fill in the details regarding the property registration number, deed information, location, and personal details.

• Document Upload: Upload the necessary documents in PDF or JPEG format.

• Payment of Fees: Pay the fees through various online gateways.

• Save the Reference Number: Remember the reference number for future reference.

Property Mutation Fees and Processing Time

The property mutation fees and processing time may differ based on the state, kind of property, and local body. It is recommended to find out the charges and time for the same from the concerned municipal body or land revenue department prior to application.

Property Mutation Fees: The fees for mutation are normally very low and can go up to Rs. 25 to Rs. 500. However, there might be other instances where the fees to be paid will be a certain percentage of the property value. The actual mutation fees vary depending on the state laws.

Property Mutation Processing Time: The time taken for processing property mutation is usually 15 to 30 days, but this may vary depending on document verification, objections, field verification, and whether a public notice period.

How to Check Property Mutation Status?

After applying, one can trace his property mutation status either through the online portal provided by the state or municipality or by the local revenue department concerned. The method will differ according to your location.

Online Portal: You need to log in to the official website from which you have applied for property mutation. You will have to enter your application number or acknowledgement number and then see the status of your application.

Offline Visit: In case online tracking is not possible, then you can personally go to the respective municipal office, revenue office, or Tehsildar office using the receipt or acknowledgement of your application.

What Happens If Property Mutation Is Not Done?

Not performing the property mutation is unlikely to make the deed of sale null and void. However, failure to record the change in the governmental records may result in problems.

Tax and Record Issues: The property tax account will continue to hold the name of the former owner until the municipal records are updated. This could be a challenge when it comes to getting the tax bills.

Revenue Record and Title Issues: Mutation is done in respect of agricultural/revenue lands only, whereby the revenue records will be updated about the change in land ownership. But mutation alone cannot prove ownership of property since the sale deed has to be registered, among others.

Government Acquisition or Compensation: Where land is acquired by the government, having updated revenue records can help ensure that the relevant authorities have current ownership information. The person entitled to compensation is determined under the applicable acquisition law and records; it is not automatically determined solely by mutation.

Difficulty in Reselling the Property: The partial mutation of a property will result in extra paperwork that must be provided when you are selling or transferring the property. You may have to provide up-to-date municipal or revenue records before doing the transaction.

Frequently Asked Questions