Is It Unsafe to Purchase A Resale Flat Without Mutation 

Mutation of flat, a crucial step after purchase of resale flat, property, or land. It updates the ownership details in the local revenue department. This process, when done at the right time, acts as a shield against property-related fraud, disputes, and legal hurdles.

It does not only facilitate quick payment of utility bills but also enables local authorities to calculate taxes and bills efficiently in your name. Most importantly, it provides you with a sense of security, knowing that you are protected from potential legal issues.

What is mutation of property?

Property mutation is a separate process you have to go through after you complete your property's registration. Mutation is a process of updating the new owner's record in the local revenue department. It helps the government to know the true owner and reflect the tax liabilities accuratly.

You can update ownership in the local revenue office by paying some mutation charges; typically ranges between 100 to 500. 

Is Mutation Required For Flat?

Yes, mutation certificate is required after the purchase of resale flats or any property sold and its ownership transferred. Mutation of flat ensures that the ownership is updated in the local revenue department for the flat you have purchased and helps to determine the authority of the real owner or the current owner. Doing mutation will help you prevent fraud and legal hurdles.

Resale Flat Purchase Procedure

Purchasing a resale flat is a smart financial move, as it is more cost-effective than newly constructed flats. These flats are ready-to-move and free from GST (although the amount of GST paid by the seller will be added to the total resale value of the property at the time of purchase and will be paid by the buyer with the future demand.)

Real estate experts recommend to buy the resale properties that are 1-10 years old, as the older a property is, the more maintenance it may require. While getting a loan on a resale property could take some time and effort, the overall convenience and affordability make it a practical choice. 

You also need to check for the essential property's documentation for appropriate evaluation to ensure optimum transparency, documents including:

       •  Title Report
       •  No Objection Certificate (NOC) from the bank
       •  Building Approval Certificate
       •  Completion/Occupancy Certificate
       •  Encumbrance Certificate (EC)
       •  Utility Bills
       •  Tax receipts
       •  No Dues Certificate from society and bank
       •  Title Deed
       •  Sale Deed
       •  Possession Certificate
       •  Share Certificate from the society

Step by Step process to purchase a resale flat

Documentation and Due Diligence

Once you have secured all the necessary documents, the next step is to follow a series of actions to ensure a smooth transaction without any legal hurdles. These steps include verifying the documents with the help of a legal expert, understanding the payment details, signing a sale agreement, and completing the registration process at the region's sub-registrar's office.

It's crucial to ensure that you have all the necessary documents from the seller to avoid any future disputes. For instance, if you don't have a possession or encumbrance certificate, there could be anyone who can claim authority over your flat in the future.

This lack of documents could lead to legal challenges in proving your ownership, which can be both time-consuming and costly. Therefore, it's in your best interest to ensure that you have all the required documents before finalising the deal.

Hire A legal Expert and Verify all the payment details

It is crucial to seek help from a legal expert to ensure that all the documents are in order and there are no hidden issues. The concerned authorities should also verify and approve all the documents. This thorough process of document checking and legal assistance will not only make you feel informed but also prepared for any potential challenges.

Know all the payment details, the total gross value of the sale amount, future demand, and if there are any other liabilities on the flat. For example, you don't have to pay the GST to the government when purchasing a resale flat, but you will have to pay this GST to the seller. 

Final stage: document signing and registration

A sale agreement signed by the seller and buyer with two witnesses is also mandatory. Also ensures payment of the token amount to the seller to finalise the deal. It will stop the seller from backing out.

After finalising the deal, the next step is to go to the region's sub-registrar's office to complete the registration process. This involves presenting all the necessary documents, including the sale agreement signed by the seller and buyer with two witnesses and identity proofs such as a PAN card, Voter ID or Aadhar Card. The registration process is a crucial step as it legally establishes your ownership of the resale flat.

What happens if a mutation of property is not done?

If a property's mutation is not done, the government records may not reflect the name of the true owner, and it may lead to ownership disputes in the future. The property's tax liability may still be on the previous owner, causing confusions and arrears.

Not having an updated property record can be a hurdle in your property selling. Also, if the true owner is not available in the government records, you cannot opt for gas or electricity connections on your name. 

Property Mutation process in India 

Here's a simplified, easy-to-read breakdown of the steps for applying for mutation certificate in West Bengal:

How to do property mutation online?

     1. Visit the official website of respective state.
     2. Select "Citizen Services" and then "Online Application."
     3. Sign up for an account and log in.
     4. Fill in applicant details and particulars of the seller or gift giver.
     5. Upload required documents like sale deed and proof of property tax payment.
     6. Pay the applicable fees online.
     7. Submit the application and keep the payment acknowledgement receipt.
     8. Await physical verification by the governing body.
     9. Receive the mutation certificate after verification.

How to do property mutation offline?

     1. Visit the local municipal corporation office or Sub-Registrar’s Office.
     2. Collect the property mutation application form.
     3. Fill in the form accurately.
     4. Attach necessary documents.
     5. Pay fees at the office counter.
     6. Submit the application and receive a transaction number.
     7. Collect the acknowledgement receipt.
     8. Await verification by the concerned department.
     9. Receive the mutation certificate and updated State records.

These steps ensure a smooth property mutation of flats and property process, whether online or offline, facilitating legal ownership and property transactions.

Conclusion 

Purchase of resale flat is unsafe without mutation certificate because mutation is the most paramount aspect after registering the flat to ensure that the local authorities' records are updated with the current owner's name instead of the previous.

It prevents property-related fraud, ensures smooth legal transactions, helps local authorities calculate your property taxes and bills, and prevents disputes. We have also mentioned the resale flat purchase procedure and what steps to follow while purchasing a resale flat to prevent yourself from all kinds of fraud and legal hurdles.