Mutation is a process of substitution in the place of the previous lessee, the name(s) of new owners. Upon transfer of the leased premises by way of sale or gift etc., the name of transferee is mutated in the records of the lessor.
In case of death of the owner, mutation will required to be done in the name of his legal heirs.
If the owner leaves behind a will, the mutation will be carried out in the name of the beneficiary. However, such a will should have been executed by the owner out of love and affection and not for monetary consideration. Moreover, the property should not have passed to the beneficiary during the life time of the TESTATOR. In such a case no unearned increase will be recoverable.
If the owner dies intestate, that is without leaving a will, then the provisions of the Indian Succession Act, 1925 will be applicable and his properties will be distributed equally among all his class I legal heirs. In such case, any legal heir can apply for mutation of the property in their names by submitting the necessary documents.
On receipt of an application for mutation after transfer of a property, it shall be verified by the concerned section of Land and Development Office whether the transfer has been effected with the permission of the lessor, if such permission was required to be obtained under the terms of lease. If so, the transferee shall be asked to furnish a copy of the transfer deed, duly certified by the Sub-Registrar.
If the Sale Permission/Gift Permission is granted to the lessee and the sale deed/gift deed has been executed by the lessee itself, strictly as per the permission granted, such sale deeds or gift deeds shall not be referred to Branch Officer or Legal Officer for checking. In such cases the sale deeds or gift deeds, as the case may be, shall be checked in the Section itself and mutation letter shall be put up. If the sale deed or gift deed is executed through attorney, such documents shall be referred to Branch Officer or Legal Officer for vetting.
If the transfer deed is found to be in order, it shall be checked whether the intimation of change in possession had been given within the specified period of one month (applicable in all cases of rehabilitation properties and certain cases of old un-restricted leases of land granted by the Land and Development Officer only) and whether other conditions, if any, of grant of permission for transfer had been complied with. If these conditions have been complied with to the satisfaction of the office, a letter intimating mutation of the property shall be issued.
If the transfer deed is found to be defective, the transferee shall be intimated of the defects with the request to get them rectified through a registered deed. If the rectification deed is executed and is in order and all other conditions are complied with by the transferee, mutation of the property shall be done.
Where in the case of transfer of a Rehabilitation Property, intimation is not received within a period of one month form the date of registration of transfer deed, a show-cause notice shall be issued to the purchaser in a prescribed format, for the payment of penalty of Rs. 100/-. This amount is indicated in the mutation letter.
Where, it is found that no permission for the transfer of the property had been obtained under the terms of lease, action shall be taken for this breach of the terms of lease in accordance with the procedure. Mutation of the property shall be carried out in the name of the transferee only after all Government dues have been realised and the conditions precedent to carrying out mutation has been fulfilled by him. Mutation in cases of (i) transfer with permission where such permission is required, and (ii) sale/transfer without permission of the lessor where such permission is not required shall not act as a waiver of the breaches in knowledge of the lessor, if any. Mutation shall, therefore, be carried out, even while the breaches remain unremedied. But it shall be made clear in the Mutation Letter that action for the breaches is being taken separately. Ground rent shall not, however, be demanded or accepted till the breaches are removed or regularised.
Mutation may be carried out only with the consent of lessee where the Sale Deed is executed by the G.P.A., even though the sale permission had been obtained by the lessee by independently applying for the same after execution of G.P.A., if the Principal (Lessee) acts himself it amounts to implied revocation. However, an exception can be made in cases of G.P.A. coupled with consideration which should have been clearly mentioned in the G.P.A. itself.
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