BackDe-jargoned | Property mutation
De-jargoned | Property mutation
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Whenever you buy or inherit a property, you need to get the property title transferred in your name within a specified period of time. If the property remains registered in the name of the earlier owner, there could be a dispute over the title of the property at a later stage.
What is it?
Through mutation, while the new owner gets the property in his name, the government is able to charge property tax from the right owner.
What’s the process?
In case of inheritance: To get the process started, you need to write an application and sign a ₹ 100 indemnity bond and submit these to the development authority office. In addition, you will be required to provide a copy of death certificate, copy of the will, affidavit duly attested by notary and documents proving that property tax have been paid till date.
In case of sale/purchase: You are required to follow the same procedure if you have bought the property. Here, the applicant will have to pay a transfer amount also. This differs from one state to another. For example, in Delhi, the transfer charge is around 3% of the sale value of the property.
In case of sale/purchase through PoA: Here, you are required to provide a copy of the PoA and duly registered receipt of the payment by the sub-registrar, in addition to the above documents. While an order passed last year by the Supreme Court said that transactions done through PoA will not transfer the ownership of the title of the property unless the sale deed is not registered at a later stage, a lot of properties are still owned through PoAs.
Final clearance
An assessing officer clears the name of the new owner after checking all the documents. In case the property is to be divided into more than one person, the assessing officer will require the original layout of the entire building.
In case of inheritance, if the will is missing, the local authority may not clear your application as there can be a number of other heirs. In this case, before applying to the authority, you need to obtain a no-objection certificate from other legal heirs.
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