Why is mu­ta­tion of prop­erty records cru­cial?

Ap­ply­ing for mu­ta­tion at the ear­li­est helps in up­da­tion of prop­erty records and min­imises dis­putes over prop­erty trans­fers

HT Estates - - HTESTATES - Sunil Tyagi

For in­di­vid­u­als who have re­cently pur­chased, ac­quired or in­her­ited an im­mov­able prop­erty, ap­ply­ing for mu­ta­tion of prop­erty records in their favour is an im­por­tant pro­ce­dural re­quire­ment. Mu­ta­tion of prop­erty records is car­ried out at the lo­cal com­pe­tent mu­nic­i­pal au­thor­ity. In Delhi, both the Mu­nic­i­pal Cor­po­ra­tion of Delhi ( MCD) and the New Delhi Mu­nic­i­pal Cor­po­ra­tion (NDMC) un­der­take mu­ta­tion of prop­erty records. In Mum­bai, the Mu­nic­i­pal Cor­po­ra­tion of Greater Mum­bai and the Navi Mum­bai Mu­nic­i­pal Cor­po­ra­tion un­der­take mu­ta­tion of records of prop­er­ties un­der their ju­ris­dic­tion.

One ben­e­fit of ap­ply­ing for mu­ta­tion at the ear­li­est is that it helps in up­da­tion of prop­erty records in one’s favour for the pur­pose of pay­ment of prop­erty/ mu­nic­i­pal tax, as well as min­imises dis­putes over trans­fer of prop­erty and se­cures one’s rights in the prop­erty. As check­ing full and timely pay­ment of prop­erty tax is part of the due dili­gence car­ried out by prospec­tive buy­ers of the prop­erty, an­other sig­nif­i­cant ben­e­fit of mu­ta­tion is that it eases the process of sale/ trans­fer of one’s prop­erty at a later stage.

How­ever, what prospec­tive buy­ers must keep in mind while check­ing prop­erty records is that mu­ta­tion of a prop­erty does not by it­self con­fer or cre­ate ti­tle of own­er­ship in a prop­erty. The ti­tle of the owner must be prop­erly as­cer­tained by in­spect­ing the chain of ti­tle doc­u­ments.

Mu­ta­tion i n c a s e of trans­fer of prop­erty

In Delhi, the Delhi Mu­nic­i­pal Cor­po­ra­tion Act (DMCA) lays down rules for no­tice of trans­fer of im­mov­able prop­erty. The trans­feror and trans­feree are re­quired to no­tify MCD in writ­ing about a trans­fer of prop­erty within three months of ex­e­cu­tion of any of the fol­low­ing - in­stru­ment of trans­fer, reg­is­tra­tion of in­stru­ment of trans­fer or trans­fer be­ing ef­fected, if no in­stru­ment of trans­fer has been ex­e­cuted.

Fail­ing to no­tify MCD about trans­fer of prop­erty would at­tract pay­ment of penalty as per DMCA. Sim­i­larly in Mum­bai, as per the Mum­bai Mu­nic­i­pal Cor­po­ra­tion Act, 1888, when the ti­tle of any per­son pri­mar­ily li­able for pay­ment of prop­erty tax is trans­ferred, the trans­feror and the trans­feree are re­quired to give no­tice of the trans­fer in writ­ing to the com­mis­sioner, within three months from the ex­e­cu­tion or reg­is­tra­tion of the trans­fer deed.

Mu­ta­tion i n c a s e of in­her­i­tance of prop­erty

I n t he event of death of a per­son who is pri­mar­ily li­able for pay­ment of prop­erty t axes, t he ben­e­fi­ciary who has in­her­ited the de­ceased’s prop­erty is re­quired to no­tify MCD about such in­her­i­tance. The ben­e­fi­ciary must no­tify so in writ­ing, within six months from the date of death of the de­ceased. In case the de­ceased has left a will, ir­re­spec­tive of whether such will is reg­is­tered or un­reg­is­tered, a ben­e­fi­ciary may ap­ply for mu­ta­tion in his favour. To sup­port the ap­pli­ca­tion, a ben­e­fi­ciary may fur­nish rel­e­vant doc­u­ments ( copy of the will, death cer­tifi­cate, etc) prov­ing that his/her in­her­i­tance is law­ful.

In Delhi, mu­ta­tion of prop­erty records may be al­lowed in cases of in­her­i­tance un­der an un­reg­is­tered will, sub­ject to sub­mis­sion of no-ob­jec­tion let­ters from other le­gal heirs of the de­ceased. In case no-ob­jec­tion let­ters are not fur­nished, MCD will is­sue no­tice to le­gal heirs of the de­ceased for their let­ters to be given within one month.

If such no-ob­jec­tion let­ters are re­ceived/ not re­ceived on time, de­spite MCD hav­ing is­sued a no­tice, mu­ta­tion shall be car­ried out in favour of the per­son claim­ing mu­ta­tion.

In the event MCD re­ceives any ob­jec­tions from le­gal heirs of the de­ceased, the per­son claim­ing mu­ta­tion in his/her favour is re­quired to ob­tain pro­bate/ let­ters of ad­min­is­tra­tion, as the case may be, as well as fur­nish an in­dem­nity bond.

The au­thor is se­nior part­ner at Zeus Law, a cor­po­rate com­mer­cial law firm. One of its ar­eas of spe­cial­i­sa­tion is real es­tate trans­ac­tional and lit­i­ga­tion work. If you have any queries, email us at ht­es­tates@ hin­dus­tan­times. com or ht@ zeus.firm.in

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