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Satyam (Asst Manager)     27 July 2011

Regarding Mutation Entry and Encumbrance Certificate

Dear Sirs/Madam,


ABC company has purchased property from XYZ. Now please clarify

1. If the encumbrance certificate is reflecting this sale, then is mutation done/not done?

2. If not, then what is the procedure?

3. Are encumbrance certicate and mutation interdependent or not?

Kindly throw some light on this.



Learning

 2 Replies

Darshan Panchal (Advocate)     27 July 2011

encumbrance certificate is to make sure that there are no dues and title is clear and marketable and it does show all the transactions in respect of the property. However, mutation of ABC is altogather is a different thing. After registration a notice will be sent to the concerned parties and after all the parties concerned having signed, and having been verified by revenue authorities mutation is done. Till then, a Kaccha(pencil) entry is made in records, which is certified after fulfilment of the process mentioned above. Also, XYZ has to make a formal application with index-II to the authorities to get the name mutated of ABC.

Bharatkumar (ADVOCATE )     27 July 2011

Ans. (1) Mutation is done.

Ans.(2) If not done at that time u contact talati / mamlatdar for that and know the reson.

Ans.(3) Now it's interdependent  becuz today if the encumbrance on property without clear / NOC of concern authority mutation is not done by Talati in Gujarat.  

In your case the vendor give a application to the Talatio / mamlatdar for transfer the name of purchaser and attached a True Copy of Sale Deed, Index - II and NOC or Concern Authority.


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