Yes you can break agreement for this reason.
Get the mutation chain completed than you can buy it otherwise don't buy it.
Mutation directly to your name is not possible legally.
Buying resale plot without mutation
I am buying a plot in which small room is available and it has water and sewage connections available from municipality. The mutation was not done by the seller from previous owner. The municipality records shows previous owner name only. And there is no mention in the current sale deed about the house number and municipality details, it has only plot details mentioned. My question is, Is it safe to buy the this property? After buying, would it be possible and legal to get mutation directly on my name? I have already paid 40% of agreed value to the seller. And we have realized now about the mutation when we started the documentation process for registration. Would it be possible to break the agreement for this reason? Please advise.
Asked 4 years ago in Property Law
Religion: Hindu
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23 Answers
Yes it's safe but just check the chain of documents and sale deeds or any encumbrance on the same. You can mutate it later but you can also insist on mutation now
1. Mutation is for the purpose of revenue collection only and it does create and extinguish title of a person.
2. So even f your seller did not get his name mutated the same does not cast shadow on clear tittle of the property if other parameters are ok.
3. So on this count alone there is no infirmity in title though it is most prudent to get all the papers checked from a local advocate.
It may not be possible for you to get the property transferred to your name directly in the municipal records.
The property should have been transferred on the seller's name after which you can mutate the same on your name.
You can ask the vendor to get the property transferred to his name in the municipal records first and then to sell the property in your favor.
If he refuses or expresses his inability then you can very well cancel the agreement and demand the return of your deposit amount.
Mutation must be done so a that a direct chain is available for any future buyer. A mutation must be done in which his name and then your name must be stated.
Don’t purchase the property
mutation has to be done in name of buyer then only should you purchase the property
mutation cannot be done directly in your name
ask seller for refund as land not mutated in his name
1. Mutation should be done. Tell the seller to apply for mutation. Most people who buy a property for a short term with the objective to sell it, avoid getting it mutated, and hence they pass this burden to the buyer.
2. Once you buy it the property has to first be mutated in favour of your seller and then in your favour. You will require the seller to be on board to get it mutated in his favour after sale, but he may not come once he pockets the sale proceeds.
3. You ought to have inquired before paying him a penny whether he has mutation in his favour or not. Now you are on a sticky wicket. If you cancel the agreement then he may not refund the entire advance paid to him.
You can buy such property without name changed in mutation record. Get it written in the sale deed that the seller shall do all necessary act required to change the name in mutation record by the buyer and indemnify you in default .
You can change the name in mutation record after sale by your own. Check the title is clear by a search in registration record for last fifty years.
1. The current owner based on his sale deed can apply for mutation of the name in municipal records based on this it will be updated it is not long process. After that you may purchase the property and apply for mutation in your name.
2. If the title of property is clear their is no dispute it is safe.
3. See mutation won't effect your ownership or title after sale deed you may also apply for same so in case you verified document and then signed sale agreement the agreement cannot be terminated for this reason.
Non mutation dose not impact title. Seller purchased the plot through registered sale deed, his title is clear. Earlier the plot may not have number. Plot detail and house no. can mention now in fresh sale deed because boundary detail dose not change.
Mutation will done directly in your name.
No, it is absolutely not safe. You will be purchasing litigation by paying your hard earned money.
No, Mutation cannot be done directly on your name.
First mutation has to be done in the name of your vendor's name.
You can cancel the agreement and seek the refund of money paid by you as there is no clear flow of title to your vendor and it is not marketable.
- When a property is sold, the change of title ownership from the existing owner to the new owner is required. This process is called Mutation.
- After the mutation , the new owner gets to record the property on his/her own name , and then the land revenue department become able to charge property tax from the lawful owner. Hence, mutation of property is required for government records if you are buying any property.
- Hence, if the seller is having a better title deed i.e sale deed in his favour , including previous owners documents in his custody , then it is safe to purchase to said property even there is no mutation in the name of the seller.
- Further , if the said property is a residential property and previous owners record is showing house number etc, then , and the current sellers sale deed must show the same , otherwise it is not safe to purchase in the absence of house number etc.
- Yes, after buying the property , legally you can get mutation in your name directly after depositing the property tax up-to- date.
- Yes, if you feeling not safe , then you can cancel the deal on these grounds.
Good luck and dont forget to rating Positively.
Mutation is not the proof of title. It is done for the purpose of payment of revenue and it is a mere proof of possession. So if the titile is clear then there is no impediment to buy this property even if there is no Mutation certificate in the name of the seller
Thank you all for your valuable suggestions. The current vendor sale deed doesn't mention there is a house in it. The Sale deed is registered as an open land. But in reality, the previous owner purchased as an open land and built a single room and got a municipality permission for "Roof with RCC Ground Floor". And water and electricity bills are also on previous owner name only. But the current vendor when he registered the title on his name, he didn't mention anything about the house construction, property taxes, house number etc..instead he registered the title as a open land only like it was in previous sale deed. Hence getting mutation on his name is also a challenge as the sale deed mentions it as open plot. I also I checked in municipality, they said mutation cannot be done with the current documents as current sale deed is registered as an open land. But I got mixed reviews from many people that mutation can be done at municipality at any point later if title chain is proper, not sure how! Kindly advice, as I have already paid 40% of property value to them. I am not sure if I can get all money back from them if i cancel the agreement on these grounds. Moreover, due to current covid situation (Lockdown for 2 months) the agreement time is also over. 1. Since agreement time is over, will I be able to proceed legally to get back my money if i choose to cancel? 2. Or If I choose to register the title on my name in the same way as an open land, is it really impossible to get mutation on my name later and any precautionary measures I need to take now if choose this option? 3. Or Is there any other safe way to complete the purchase of this property?
Asked 4 years ago
1. Yes you can go ahead.
2. It's better not to opt for the said land due to defective title
3. I will not advice the same to avoid future litigation
Explain reasons why you want to cancel the agreement as mutation not done in name of seller
2) you should get your money back
3) only after mutation done in name of seller should you buy property
Mutation is a revenue record. It does not confer title to the property. Mutation many times keep pending for long years.
Do you think you will be the owner of the land simply by changing the name in mutation record any how without actually purchasing it by a registered sale deed.
Immovable property can not be transferred without executing a registered deed.
After purchasing you apply for mutation .
Agreement is for open land. You can claim your amount.
Earlier it was land, now room constructed. No problem, you can purchase by mentioning room or no room.
Go ahead with purchase. Just take delivery of all original chain of property document from its origin.
1. Yes you can get your money back.
2. Mutation will be difficult later, chain is needed to be completed.
3. Clear chain of ownership
1. The agreement is valid for three years even though there's a mention about a particular time limit in the sale agreement.
2. It is not advisable to buy the property which has inbuilt problems in it.
3. The property relevant papers may be produced before a local advocate and proceed only when recommended.
Yes it is safe to buy the property with only plot no mentioned on sales deed but only if mutation records are updated to name of current owners.
Yes you can cancel the agreement and demand the advance amount paid to seller if he refuse to get mutation records updated.
1) Yes you can.
2) You can. Further, take indemnity from your seller stating that, he shall indemnify you in case of there arises any problem in getting your name mutated in concerned records.
3) If you want to cancel the deal you need to give him reason about mutation, construction of house, and taking of amenities in earlier owner's name.
Further, as stated above, if you want to go ahead with the transaction, withhold around 10 to 20% of sale consideration till mutation process is completed in your name. This is a win-win situation for both of you.
Going to litigation is a foregone option, it leads you no where.
1. See due to lockdown the agreement time can be extended, further the agreement can be cancelled based on termination clause in the agreement and accordingly you can seek refund.
2 You may purchase it showing the open land and small construction over it , and you can apply for mutation also after wards with plan approvals you may do further construction.
1. If the house was constructed subsequently then there is no way it could have been mentioned in sale deed earlier. It should suffice if he is able to share with you all the approvals he was required to obtain.
2. However, if the house existed even at the time of execution of sale deed then it is wrong to register it as plot. Such a property should not be purchased.
3. To get a concrete opinion, you should consult a lawyer with complete set of documents.