Property Tax & Legal Basics: Demystifying Sale Deeds, Title Deeds, Mutation & Power of Attorney
Navigating property ownership in India can feel like decoding a legal labyrinth. This guide simplifies the key documents and processes every buyer, seller, or investor should understand.
Sale Deed vs Title Deed: What’s the Difference?
Sale Deed is the primary document used during a property transaction. It legally transfers ownership from seller to buyer and must be registered with the Sub-Registrar.
Title Deed refers to any document that proves ownership—this could be a Sale Deed, Gift Deed, or Inheritance Deed.
Mutation: Updating Government Records
Mutation is the process of updating municipal records to reflect the new owner’s name after a property transfer.
– Why it matters: It ensures accurate property tax billing and is required for utilities and permits.
– Not proof of ownership: As per the Supreme Court, mutation is an administrative record—not a legal title.
Power of Attorney (PoA): Delegating Authority
A Power of Attorney allows someone to act on your behalf in property matters.
– Types:
– General PoA: Broad powers over multiple matters.
– Special PoA: Limited to specific tasks (e.g., signing a sale deed).
– Legal Caveat: PoA alone does not transfer ownership. Post-2012 rulings mandate that property transfer must be backed by a registered Sale or Gift Deed.
Property Tax: The Fiscal Side of Ownership
Paying property tax is mandatory and helps establish possession.
– Documents Needed: Sale Deed, Mutation Certificate, and tax receipts.
– Why it matters: Unpaid taxes can delay mutation and affect future resale.
