Mutation of Property

What is Mutation of Property?

Mutation is the official act of changing the name in municipal or revenue records after ownership of a property changes hands. The sale deed only proves the transaction between the buyer and the seller — it does not automatically update the municipal database. Mutation is the second, separate step that tells the local body, ‘‘I am now the legal owner, please tax me and bill utilities in my name.’’

In Karnataka the mutation is the khata transfer filed with BBMP, BMRDA, BDA, or the relevant village panchayat. In Maharashtra it is the 7/12 extract update at the talathi office. In Delhi it is filed with the MCD, in Telangana with GHMC, and in Tamil Nadu with the local corporation revenue wing.

Why it matters for property buyers

Without mutation, the previous owner stays on record. Property tax bills, water supply, and electricity will be raised in their name. Worse, the municipal body and any subsequent buyer can challenge your ownership during resale because the revenue record contradicts your sale deed. Banks ask for mutated khata or 7/12 extract before sanctioning a top-up loan, and resale buyers will not pay full price for an unmutated property — typical discount is 5 to 8 percent on the asking value until mutation is complete.

In Bengaluru specifically, an A-khata property has full mutation rights while a B-khata property is in a regularisation grey zone. Brickplot tracks khata type on every BLR project page because it directly affects resale liquidity and loan eligibility.

How to verify or calculate it

1. Get the latest property tax receipt — it must show your name as owner.
2. Pull the khata extract (BBMP eAasthi portal) or 7/12 extract (MahaBhulekh) — your name should appear in column 1.
3. If still in the seller’s name, file Form 47 (BBMP) or apply through the talathi (Maharashtra) within 90 days of registration.
4. Pay the mutation fee — usually 2 percent of the property value in Karnataka, nominal in Maharashtra.
5. Carry: registered sale deed, latest tax receipt, encumbrance certificate, identity proof, and possession certificate.
6. Mutation order is typically issued within 30 to 90 days; follow up if delayed.

How Brickplot uses Mutation in its score

Mutation status feeds the Legal & Title Cleanliness (16 percent) axis. A project where original buyers have not been able to mutate khata — usually because of a building plan deviation, OC absence, or unresolved litigation — is flagged. We also track the khata type meta key (_brickplot_khata_type) on Bengaluru pages: A-khata projects score full marks on this sub-axis, B-khata projects receive a partial deduction, and unconverted revenue-pocket land scores zero. Persistent inability to mutate after handover is a hard signal that the underlying title or approval has a defect that the builder has not disclosed.

Related terms: Khata Certificate, Sale Deed, Encumbrance Certificate