Mutation of Property in real estate

What is Mutation of Property?

Mutation of property in real estate is a term used to describe the process of updating official land and municipal records to indicate a change of ownership after a property is sold, transferred, inherited, or donated. This procedure ensures that the name of the new owner is registered in government documents for tax and legal purposes.

When do you need mutation of property?

You need mutation of property in the following situations:

1. After a Property Sale – When a property is sold, the new owner must update municipal records for tax and legal purposes.
2. After Inheritance – When a legal heir inherits a property due to the owner’s demise, mutation is required to transfer ownership in government records.
3. After a Gift Transfer – If a property is gifted to someone, the person must get the mutation done to establish their name in official records.
4. After a Property Auction – If a property is acquired through an auction, mutation ensures the new buyer is recorded as the legal owner.
5. For Leasehold to Freehold Conversion – When converting a leasehold property into freehold, mutation is necessary to reflect the change in ownership type.

Process involved

Offline application of property mutation process in Telangana

• Step 1: Visit the nearest Sub-Registrar’s office or download the application form from the official website of the Telangana State Registration and Stamps Department.
• Step 2: Provide accurate details such as property details, previous owner details, new owner details, and reason for mutation in the application form.
• Step 3: Attach the necessary documents, including the sale deed, encumbrance certificate, property tax receipt, and identity proof of both the previous and new owners.
• Step 4: Submit the filled-in application form along with the supporting documents at the Sub-Registrar’s office. Pay the applicable fee as per the Telangana State Registration and Stamps Department guidelines.
• Step 5: After submission, the concerned authorities will verify the documents and process the application. Once approved, the mutation entry will be made in the land records.

Online application of property mutation process in Telangana

With the advent of technology, the Telangana government has introduced an online application process for mutation of property.

• Step 1: Visit the official website of the Telangana Revenue Department. On the homepage, you will find the option for ‘Mutation’ under the dropdown list of ‘Property Tax’.

• Step 2: Enter your mobile number to get the OTP and get to the next step. Online mutations are only possible for registrations before June 16, 2021. Also, note that the owner mobile number has to be used for OTP validation and correspondence.

• Step 3: You will be redirected to the application form. Fill in all the required details such as property details, owner details, and contact information.
• Step 4: Once you have filled in the application form, you will need to upload the necessary documents.
• Step 5: After uploading the documents, you will be required to pay the application fee. The fee can be paid online using various payment methods such as net banking, credit card, or debit card.
• Step 6: Once the fee is paid, review all the details and submit the application. You will receive an acknowledgment receipt with a unique application number. Save the number for future reference and check the status of your application after about two weeks.

Documents required for MOP

1. Copy of the title deed or sale deed
2. Copy of the will
3. Indemnity bond
4. Aadhaar card
5. Property tax receipts
6. Current and previous registration deed
7. Application form for property mutation
8. Postage stamps of applicable value
9. Affidavit for property mutation
10. Death certificate of the owner (for inheritance)
11. Succession certificate

Advantages of Property Mutation

1. Legal Proof of Ownership – Provides proof of the new owner’s name on official municipal and revenue records.
2. Seamless Payment of Tax – Facilitates payment of property taxes by the legal owner to avoid penalties.
3. Prevents Court Litigations – Avoid legal controversies related to ownership since the latest records are updated.
4. Necessary for Future Transactions – Required for resale, transfer, or availing loan against the property.
5. Identification in Government Records – Helps to ensure that the property is identified under the correct owner’s name in all government records.

Problems Encountered in Property Mutation

1. Time Consuming Process – The mutation process may take weeks or even months because of the delay caused by the bureaucracy.
2. Complex Documentation – Involves more than one document such as sale deeds, tax receipts, and NOCs, which can prove to be challenging to obtain.
3. Corruption & Bribes – Officials may also ask for unofficial payments to accelerate the process in certain situations.
4. Rejections Due to Errors – Applications having incomplete information or incorrect details are rejected and need to be resubmitted.
5. Lack of Awareness – Most property purchasers and inheritors are not aware of the significance of mutation, resulting in legal and tax problems in the future.

Conclusion

Mutation of property is a crucial step in real estate transactions, ensuring that the new owner’s name is updated in municipal and revenue records. In spite of obstacles like bureaucratic delay and complicated documentation, the completion of the mutation process avoids conflicts and protects rights of ownership. Property purchasers, inheritors, and transferees must make mutation a priority to ensure smooth property management and adherence to legal requirements.

FAQs