The municipal authority's recent circular will reduce some headache for those inheriting property through an unregistered will.
M any individuals continue to remain unaware of their legal obligations after being named beneficiaries of an immoveable property in a will.
However, a beneficiary who inherits immovable property under a will is required to complete certain formalities to secure his rights in the inheritance. One such responsibility involves applying for mutation of property records in one's favour, at the earliest.
This helps in updation of property records, but mutation does not amount to recognition of title of ownership in the property.
Mutation of property records takes place at the local competent municipal authority office under the jurisdiction under which the inherited property is located.
In Delhi, for the purpose of property tax, Municipal Corporation of Delhi (MCD) undertakes mutation of property records. Under Delhi Municipal Corporation Act, 1957 (DMCA), after the death of the person primarily liable for payment of property taxes, the person inheriting his property is required to notify the MCD about such inheritance. The beneficiary is required to do so in writing, within a period of six months from date of death of the deceased. The beneficiary is also required to submit documents to the MCD proving that his inheritance is lawful and valid. As evidence, a beneficiary can furnish a copy of the will.
As wills do not require compulsory registration under Registration Act, 1908, even a properly executed unregistered will is valid in law. Irrespective of whether a will is registered or unregistered, a beneficiary is entitled to apply to MCD for mutation of property records in his favour. However, in August 2010, the MCD had released a circular stating that application procedure for mutation was different for inheritance under an unregistered will vis-à-vis inheritance under a registered will. As per the circular, beneficiaries inheriting under an unregistered will were required to mandatorily submit a succession certificate/probate order from a competent civil court to MCD. This did not apply for beneficiaries under a registered will .
Recently, the MCD has reexamined the matter and issued a new circular dated August 8, 2011, to this effect.
Beneficiaries under an unregistered will also won't have to obtain succession certificate/probate order for mutation. With effect from August 8, mutation of property records may be allowed in cases of inheritance under an unregistered will, subject to certain conditions they have laid down as given below: No-objection letters from other legal heirs are required to be submitted by person claiming mutation. In case no-objection letters are not furnished as above, MCD will issue notice to legal heirs of the deceased for their no-objections to be given within one month.
If such no-objection letters are received/not received on time, despite the MCD issuing a notice to legal heirs, mutation shall be carried out in favour of the person claiming mutation.
In the event of the MCD receiving any objections from the legal heirs of the deceased, the person claiming mutation shall be required to obtain a probate of will/letters of administration.
Indemnity bond will continue to be obtained from the person claiming mutation, so as to keep MCD indemnified of any losses incurred on account of any dispute over the property in question.
This simplification in procedure for carrying out mutation of property records is a THINKSTOCK welcome move on the part of MCD. It is important for individuals to apply for mutation of property records on time to minimise chances of disputes over transfer of property and payment of property taxes.
