What is property mutation and it's importance

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Investing in real estate is not only expensive, but it also usually involves a lot of complicated but necessary documentation. An important step that must be completed after registration of the property in question is the change of land, also referred to as a change of ownership in government documents. Let's take a closer look at property mutations.

What does property mutation mean? The process of transferring "ownership" to a new property owner is called property mutation. New property owners are also responsible for paying any required property taxes due to property tax changes. When an asset is sold or transferred, the process by which ownership passes from one person to another is known as 'change of ownership' or in Hindi 'Dakil Khaliji'.

What types of property mutations are there?

Land mutations or property mutations can be divided into two main categories:

• Non-agricultural land
• Farmland

Land change: Land change is very important because it formally transfers land ownership to a new owner. Additionally, once the land is acquired, the state pays compensation according to the land mutation document. If the property has just been sold and ownership has not changed, the new owner will not receive compensation.

However, this does not apply to residential real estate. If the real estate in question is a single-family apartment, a floor of a building, a house, or a vacation home, the inability to change the real estate in question does not negate the ownership rights of the new owner.

City tax, utilities, and water bills will continue to be billed in the previous owner's name until the new owner receives the necessary documentation on their behalf. However, it is best to complete the modification process as soon as possible, as the modification documents will be required in the event of a future property sale.

What role does the mutation record play?

Changing properties is just as important as registration. This benefits both the new property owner and the authority. Below are some of the benefits of mutation records. Authorities can use the mutation records to charge the rightful owner's property taxes and other duties.

Mutation Records is a great resource if you want to report fraudulent transactions on your property or correct errors in your land records.

Potential buyers can request to see the mutation certificate, facilitating the subsequent sale of recently acquired properties.

For agricultural holdings, a land variation certificate is required before the land can be sold.

It provides reliable proof of ownership. What if the property mutation is not completed?

In terms of priority, land registration and stamp duty payments always take precedence over changes in ownership. Mutations are often overlooked even if the buyer registers them directly when selling the property. In addition, real estate buyers are further encouraged by a small penalty for non-mutations. It must therefore be emphasized that it is advisable to proceed with the property conversion as soon as possible after the property sale transaction. In the event of a legal dispute, it will not only support claims against the property but will also be needed in the event of a subsequent sale.

It is worth noting that an interested party can submit another application within 30 days after the first real estate modification application is rejected.

Latest information on property mutation.

Although mutation certificates are important documents that prove ownership, they cannot be used in place of or exchanged with registries. According to the Supreme Court of India, mutation certificates do not create or confer any property rights. The High Court noted that mutation certificates do not confer any property rights. Rather, it is only used to record income and calculate property taxes. According to the Supreme Court, mutation certificates are used only for financial or administrative purposes.

If there is a discrepancy between a valid will and a mutation certificate, the aggrieved party must file a complaint with the court and the matter will be resolved according to law.

The Goa government has increased the cost of property mutations in a recent update. Previous property change fees ranged from Rs 1,000 to Rs 5,000. Regardless of the size of the inheritance, there is a fee of 1,000 rupees for changing the inheritance. However, in other situations, the cost of modifying a property depends on its size. If the area of ​​​​the property is up to 1,000 square meters, the property tax change is 1,500 rupees. The price for properties between 1,000 and 5,000 square meters is Rs 2,000. Thirdly, if the size of the house is between 5,000 sq ft and 10,000 sq ft, the home renovation cost is Rs 3,500. The final fee is 1000 rupees. 7,500 for homes over 10,000 square feet.