Mutation of Property

mutation of property

Mutation of Property is the change of title ownership from one person to another when the estate is sold or transferred to anyone. After the mutation, the name of the new owner gets registered with the revenue department, and the government can charge property tax from the rightful owner which is crucial. Most people try to evade taxes, but at the time of disputes when they need to adopt the legal procedure, it becomes a major hindrance to them especially NRI’s.

Most people are unaware of the various Indian acts and procedures which need to be followed before transferring of the property. A lack of awareness has to lead to mental harassment to people. When it comes to transferring of property, a sales deed may not always fit the bill, specifically if you want to pass it on to relatives. In such cases, apparatus like a gift deed or relinquishment deed can come to your rescue. Blindly choosing either can lead to trouble. You must understand the purpose of each document before getting it drafted.

Transfer of property can take place with the three ways gift deed, sales deed, and relinquishment deed.

Gift deed

This document allows you to gift your assets or deportation of ownership without any exchange of money. To gift immobile estate, you just have to draft the document on legal paper, have it authenticated by two witnesses and register it. The biggest benefit in this is there no tax implication if you are gifting your estate to your relatives.

Relinquishment deed:

This document is quite distinct from a gift deed, though the legal consequences are the same. You can use this instrument if you want to transfer your rights in a particular property to another co-owner. Such a transfer is also irreversible even if it is without any exchange of money. As with all documents related to the transfer of property (immobile), a relinquishment deed needs to be signed by both parties and registered.

Documents required for Mutation of Property at the time of Sale:

  1. Copy of Sale Deed
  2. Application for mutation with court fee stamp affixed on it
  3. Indemnity bond on stamp paper of preconditioned value
  4. Affidavit on a stamp paper of essential value
  5. Receipt of current/latest property tax payment

Documents required for Mutation of Property at the time of Inheritance:

  1. Death Certificate
  2. Copy of Will or Succession Certificate
  3. Indemnity bond on stamp paper of preconditioned value
  4. Affidavit on legal paper of preconditioned value attested by a Notary
  5. Receipt of up-to-date property tax payment in case of Power of Attorney
  6. A copy of Power of Attorney.
  7. Copy of Will
  8. Receipt for payment registered with a sub-registrar
  9. Application for mutation of property with court fee stamp affixed on it

For a Non-resident India (NRI) it is tough to collect all the documents and do the legal documentation. We offer them legal Advice in these matters and help them get their work done, and they don’t have to disturb their personal and professional life and can get their work done while sitting abroad.