Can a Sale Deed Be Cancelled After the Property Mutation Has Been Completed?
It is possible to cancel the registration of your conveyance or title deeds (sale, gift, exchange, transfer) by registering a cancellation deed. A cancellation deed is a legal document that extinguishes any rights the buyer of a property may have had to it. It cancels the property transfer that had taken place from the buyer to the seller. It must be signed by both, the buyer and the seller.
MUTATION
Whenever there is a change in the ownership of a property, it is important that the new owner updates the revenue records of the municipal authorities, so that they can charge property tax from her/him. The process of recording the change in ownership in the revenue records of the municipal authorities is called ‘mutation’. Mutation is referred to as ‘Dakhil Kharji’ and ‘Intekal’ in Hindi. A mutation certificate is required when the new owner applies for a water or electricity connection.
So can a sale deed be cancelled after the mutation of your property has taken place?
It is possible to register your cancellation deed even after mutation has taken place. However, once the rights to your property have been extinguished by the registration of a cancellation deed, i.e., once you are no longer its owner, the new owner will have to undertake the property mutation. It is important that the municipal records always show the true ownership of the property.
To understand the process of registering cancellation deeds in Mumbai, take a look at our article- ‘Cancellation Deeds- Registration Trend in Mumbai and How to Register’.
What happens if you don’t mutate your property on time?
Property mutation should be done within six months of its purchase. A minimal penalty of ₹25 in Delhi is levied on the owner if s/he fails to mutate her/his property on time.
Photo by Ryutaro Tsukata from Pexels.
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