Legal Wing - Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Bengaluru 15 th September, 2016 Article 99

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1 Legal Wing - Federatin f Karnataka Chambers f Cmmerce and Industry (FKCCI), Bengaluru 15 th September, 2016 Article 99 Dr. Gubbi, Cunselr & Advcate: Imprtant Views & Curt Decisins fr Members Attentin Dear Sir /Madam, Tday I am sharing n What is mutatin f prperty? Hw t apply fr mutatin f prperty? Buying a prperty (hme/plt/land) is ne f the mst imprtant decisins that yu will ever make. Buying a prperty invlves a lt f mney and it is a serius mney decisin. When buying a prperty, due diligence is essential and yu have t verify a lt f imprtant prperty dcuments. Patta r mutatin r Khata is ne such imprtant prperty dcument. When yu are selling a prperty, the prspective buyer might ask fr a cpy f the latest mutatin dcument. Based n my experience, it has been bserved that many peple d nt knw the imprtance f this dcument. S, let s discuss abut What is mutatin / Khata / Patta? Difference between prperty registratin & Mutatin. What is the prcedure t get mutatin f prperty dne? Hw t apply fr mutatin f prperty? What is Mutatin f Prperty? Mutatin is the change f title wnership frm ne persn t anther when the prperty is sld r transferred. By mutating a prperty, the new wner gets the title f the prperty recrded n his/her name in the land revenue department and the gvernment is able t charge prperty tax frm the rightful wner. One needs t get mutatin dne and get the new wner details updated in the revenue recrds maintained by civic bdies like Municipalities, Panchayats r Municipal Crpratins.

2 Mutatin Vs Registratin f Prperty Registratin f the prperty is a full and final agreement signed between tw parties ie., buyer and seller. Once a prperty is registered, it means that the prperty buyer in whse favr the prperty is registered will becme the lawful wner f the prperty and is fully respnsible fr it in all respects. The new wner is liable t pay prperty taxes, develpment charges etc which are levied by the lcal civic bdy. Once the prperty is registered in Sub-registrar ffice, the buyer f the prperty has t get the title f the prperty updated in his/her name in the lcal revenue ffice (municipality r panchayat ffice). This is knwn as mutatin. Once the prperty is updated in the revenue recrds, hencefrth the new wner has t pay the applicable taxes t the civic bdy (like prperty tax, develpment charges etc.,). S, registratin f prperty and mutatin f prperty are tw different things. Mutatin f prperty happens after the registratin f prperty. Registratin f prperty thrugh the executin f a Sale Deed is dne at Sub-registrar ffice(registratin ffice) and mutatin is dne at lcal civic bdy ffice. Registratin f the prperty des nt lead t autmatic update f land recrds in revenue ffice. I believe that sme States like Andhra Pradesh are planning t integrate bth the Registratin & the Revenue departments, s that the land recrds are autmatically updated in revenue dept (mutatin) as sn as the prperty registratin is dne at the Registratin ffice. Types f Mutatins There are tw types f mutatins. 1. Mutatin f Agricultural lands & 2. Mutatin f Nn-Agricultural Lands. Example : Flats, independent huses, residential plts, gdwns, etc., In case f Agricultural lands, mutatin is must. Withut mutatin the land title will nt pass t the new wner. Mutatin shuld be entered in the

3 revenue recrds. The wner s name which is recrded in the revenue recrds is referred as Pattadhar. In scenaris like land acquisitin by the Gvernment then the cmpensatin is paid nly t the individual whse name is present in the revenue recrds. In case f nn-agricultural lands, failure t mutate des nt take away yur right in the sale deed. That is even thugh the mutatin has nt dne, the purchaser s title will nt be affected. He/she will remain the wner f the prperty. But the nly prblem f nt mutating is that yu may nt get electricity cnnectin, water cnnectin and yu cannt pay municipal tax. When Mutatin f prperty can be dne? Yu need t get the transfer f title f prperty (mutatin) dne in the belw circumstances t avid any legal disputes in the future; After buying/purchasing a prperty. After inheriting a prperty thrugh a Will r withut a Will. After acquiring a prperty thrugh a Gift Deed. What is the Prcedure fr Transfer f Title f Prperty in Revenue Recrds? (Mutatin prcedure) Kindly nte the dcumentatin prcedure fr mutatin f prperty and the applicable fees varies frm n State t anther. Belw is the general prcedure; Applicatin : Yu (buyer/new wner) has t submit an applicatin at lcal civic bdy (t Tehsildar) r at revenue ffice. In the applicatin frm, yu may have t prvide persnal details, prperty address, registratin date, type f transfer (gift/registered sale deed/will deed etc), prperty particulars etc., Yu have t pay applicable fees thrugh Demand Drafts. Enclse the required dcuments alng with the applicatin and DDs. Cpy f Sale Deed Indemnity Bnd & Affidavit Latest prperty tax receipt Dcuments required fr mutatin in case f inheritance r Will are as belw; Death Certificate Cpy f Will r Successin Certificate

4 Indemnity bnd & Affidavit Latest prperty Tax paid receipt Cpy f Sale Deed etc., Once yu submit all the required dcuments, the assessing fficer (r) revenue inspectr will check the dcuments, may visit the prperty and will prcess the applicatin. Generally they will issue Patta Certificate / Mutatin Certificate / Khata Certificate after prcessing yur applicatin. Imprtant pints & FAQs Listed belw are sme f the imprtant pints n mutatin f prperty; Mutatin f prperty is very imprtant whether the prperty is a piece f land r a building. But mutatin n land is very essential. Patta land r prperty where up-t-date mutatin is dne can be easily sld. If the prperty is jintly wned then mutatin can be issued jintly in the name f all c-wners. If yu are the first wner f the prperty ( fr example, prperty acquired in a Gvt e-auctin), yu have t register yur name in the land revenue recrds. S, in this case it is nt transfer f title f prperty. If yu wuld like t check if a prperty has free title/wnership (r) whether it is mrtgaged r nt, yu have t apply fr Encumbrance Certificate. Yu can crss-check these wnership details by taking a Mutatin Extract. (Mutatin Extract is an extract frm the mutatin register maintained by the Village Panchayat Accuntant r lcal civic bdy ffice. It recrds the transfer f land and the mde f such transfer, recmmendatins f the enquiry /Assessing Officer fr such transfer, date f entry f transfer and the recrd f rights.) Is mutatin mandatry after the Registratin f Prperty? N, it is nt mandatry. But it is very essential. If mutatin is nt dne, des that mean title f prperty is nt transferred frm seller t buyer, even after registering the Sale Deed? The title gets transferred t the buyer but mutatin f recrds is always better t shw the pssessin f prperty. What if smene des a mutatin f land/prperty in his/her name illegally? Will he/she be the new title hlder? By merely transferring the name in mutatin recrds, ne cannt claim that he/she has title t the prperty. Kindly nte that withut a registered sale deed n his/her name, mutatin is invalid and illegal. DISCLAIMER: The cntents f these articles are slely fr infrmatinal purpse. It des nt cnstitute prfessinal advice r recmmendatin.

5 Authr des nt accept any liabilities fr any lss r damage f any kind arising ut f infrmatin in these articles nr fr any actin taken in reliance theren. Dr. Gubbi Feedback: Mb:

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