Question on Title Deed for a MUDA property

Q: Hello all,

I am planning to buy a MUDA site at Mysore which is in the following condition.

The property was purchased by a person who has died now. It shall be transferred to this mother's name as he was unmarried at the time of his death. The original buyer who has died had bought it from a person who was alloted the site from MUDA.

They are in the process of doing the khata transfer from the deceased son's name to mother's name.

They have all the documents like Sale deed, Possession certificate, Old khata, Allotment letter and latest Encumberance Certificate. Only thing they don't h ave is the Title deed.

They are telling they have not taken it as yet and now since the owner has died they cannot take it now. Only thing they can do is khata transfer at MUDA, Mysore.

I am not sure if they are right. Can I buy such a property where everything is clear except for this.

How essential is a Title Deed when the Sale deed is there. Is sale deed a sufficient document or I need to insist on Title Deed. Kindly let me know about the same.

Thanks and Regards,
Chitra

25th May 2015

Legal in Mysore

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Replies (15)

Hi Raj Thank you for sharing your experiences I heard a situation which i want to verify 1. MUDA alloted to person A long back 2. The land is now shared across the hierarchy as the original owner to whom i tis alloted is no more 3. Currently since no house is built , no Title deed issued
The seller is telling that now if we built a house at that land and apply for the Title deed, it would be very minimal else getting a title deed without house would he heavy as 50 percent. Is this statement is true Can you please clarify. Thanks, Venkata

Ramakrishna D.V,

17th December 2022

Comment

Hello Sir madam
I bought a muda plot with all the documents from a GPA holder, now If I want to construct a house do I need Title deed,

syed,

25th January 2021

Comment

I bought site where sale deed present between MUDA and second owner. Alotte sold site to second owner without title deed. Second owner paid penalty and MUDA registered sale deed with second owner. I purchased site from second owner. Do I have to request for title deed?

Ravindra,

27th December 2020

Comment

What is the procedure to get the CR for the muda site alloted and the house is built in year 1997.

Ganesh MM, Mysore

2nd March 2020

Comment

Mr.Raj, in your clarification to Mr.Dinish on 21st March 2016, you mentioned that penalty clause to obtain Title deed would become applicable only when the site is sold. We have not sold, but the site is kept vacant. For vacant site too, Muda penalise for issuing title deed. I read, it is 10% of value declared by SubRegistar for 40x60 site. But, Muda is insisting 25%. I spoke to two other officers in Muda, both say it is 25%. I read a press note issued some time during Feb2017, when Mr.Druvakumar was Chairman of Muda, penalty for issue of title deeds to vacant sites was decided depending on the site dimension. For Auctioned site, it is mentioned as 25%. For sites sold during lock in period it is 50%. when Katha and possession letter describe the extent of site and its boundaries, can we not prepare title deed and get it Registered in Sub office. Moreover, site is now falling under the Jurisdiction of Mysore City Corporation. For the past 10years,propety tax is paid to MCC

Chandramouli,

10th September 2018

Comment

Thank you, Mr.Raj for your reply. I our case we have not sold the site. we have katha and possession letter issued by Muda. They charge Rs.5 lakhs and odd to issue title deed. If House is constructed, they do not penalise they say. Funny.

Chandramouli,

7th September 2018

Comment

Mr.Raj, did you sort out the issue with Muda?

chandramouli

Chandramouli,

7th September 2018

Comment

Yes, MUDA wants 22 Lakhs as penalty amount from me in order to get a title deed. That is a ridiculous amount and greed. I don't want their title deed.

Raj,

7th September 2018

I am seeking a clarification regarding purchase of muda site in vasantnagar mysore. The original site was alloted to my co brother in July 2007, and the lease period finishes in July 17. Now as per the muda policy you can only sell the site after building the house of 6 square . I have already paid the ammount of the site, and now I am constructing the house with my money . I have already submitted the documents for the CR with his signatures. Once the CR is given , then my co brother will apply for the Title deed and subsequently register/or a gift deed . Is this arrangment in order.

R N SHINDE, Bangalore

21st November 2016

Comment

Hi, i like to ask a question to the expert that, in 1977 our company had got allotted a commercial site from MUDA, at that point of time our company was a partnership firm, as per the MUDA terms and conditions we had constructed the building and had let out , in 1986 we got converted our partnership firm to pvt ltd firm, for the reasons known, MUDA didnt issues us the title deed, mean while company went into the liquidation proceeding and same was revived in 2009. after checking up the documents we found that MUDA did not issued us the Title deed to our company, so we applied for title deed, now it was informed that we should pay a penalty of 20% of market rate, with is irrational. can any one suggest the whether MUDA claim is correct or wrong.

Note : we just charged a partnership firm to pvt ltd company

Mahesh M,

26th July 2016

Comment

Sir, In my case My Mother has been allotted auction site in 2003 and she paid the entire amount in Jan 2004 and at that time we were not knowing regarding the Title Deed and therefore we had not applied for the same. Now what is the procedure for taking the Title deed.
we have only payment challans and Haraj Stirikaran patra
whether we need to pay any penalty to get title deed for the said auction site allotted.
one agents tells there is no penalty for auction site and the other one tells we need to pay 25% of the market value as penalty to get title deed. what is the correct provision in regard to penalty to get title deed and is there any notification for the same.
please help me out..
Dinesh

Dinesh Vk,

12th March 2016

Comment

Hi Dinesh, if your Mother bought the property directly from MUDA by auction or otherwise and she has not sold it to anyone else, you can get the MUDA title deed without any penalty. The penalty clause kicks in only when the property without the title deed is sold to another party.

Procedure to obtain the title deed:

Obtain the title deed (kraya patra) request form, fill it out and provide all necessary documentation listed on the back of the form.

Submit to MUDA and obtain the acknowledgement

A case worker is assigned based on the location of your property. Find out who he/she is and keep meeting her to get the status.

The usual nonsense you get from MUDA workers is that your file is not found! You have to bribe the file locator who is a lazy ass sitting in the secure corridor.

Once your file is located, your case worker will have it with him/her and then you have to constantly pursue it for the status update.

Find out who the Tahasildar is and meet with him.

Raj,

21st March 2016

I have photocopy of lease cum sale agreement between MUDA and allottee. I don't have original with me.

Broker informed me that this is procedure in MUDA. MUDA keeps original lease cum sale agreement with them and issue photo copy to allotee.

Is it true? Please confirm.

Ravindra,

20th October 2015

Comment

You can get the original from MUDA. However, this is not something you should be worried about. You need the "Title Deed" which is critical for selling your property or to seek bank loan to build your house in case you need it.

Raj,

21st October 2015

Hi Ravinder, You can also apply to get original copy of lease cum sale agreement paper from MUDA office. To sell any property, mainly sale deed and registration paper is necessary..

V. Victor,

27th October 2015

Mr. Victor. What is the procedure to obtain the original copy of lease cum sale agreement. Kindly let me know. I have to obtain the same.

pushpa,

18th June 2018

Sir, In my case My Mother has been allotted the Site in 1998 and she paid the entire amount in 2001 and at that time we were not knowing regarding the Title Deed and therefore we had not applied for the same. Now what is the procedure for taking the Title deed.

If we construct the house what will be the cost of the Title deed.

If we apply for title deed without construction what will be the penalty.

Other that the penalty how much the officers and other persons will charge and the time it may take to get the title deed with construction and without construction.

Rajesh,

4th September 2015

Comment

From what you've written, I understand that your Mother is still the owner of the land MUDA allotted her and that the no building has ever been constructed on it. Right? Please list all the documents you have in your possession. I can then tell you what you need to do to acquire the Title Deed.

Bharath

Raj,

4th September 2015

Title deeds are paper documents showing the chain of ownership for land and property. They can include: conveyances, contracts for sale, wills, mortgages and leases.Share what document you have to show that this land is in the name of your mother on that basis you can claim for title deed...

Dhiraj,

11th September 2015

the ridiculous penalty which MUDA wants you to pay for buying the land from the original allottee who did not comply with MUDA's requirement of not building his house within the 10 years lease cum sale agreement.

I have a similar situation. I bought a MUDA allotted site from the original allottee within two years of allotment and build my house on it. I had no clue what Title Deed was since I lived in the US at the time when I bought this site and my Dad who was my GPA holder at that time bought it for me and the property was registered to me in the sub-registrar's office for 6 Lakhs. I have returned from the US now and I learnt about the Title Deed and applied for it in MUDA. The Tahasildar who is in charge of issuing the Title Deed has told me that I need to pay a penalty of 19 Lakhs which is 50% of the current sub-registrar's value of the land. I don't know how MUDA comes up with such insane and irrational requirements.

Hope I have made things clear!

bjk1962@rediffmail.com

Raj,

14th July 2015

Comment

Continued...

MUDA does not issue Title Deed until the allottee builds his house on the allotted land. Once the allottee has built his house, he can apply for the title deed and MUDA should not have any problem issuing it.

In your case, you are buying the land from allotee who is no more but the land ownership is transferred to his mother. No problem. You need to have the registration paper indicating that the land is registered to allottee's mother without any encumbrances on it. MUDA's latest rules require you to pay a penalty of 50% of the current sub-registrar's value of the land in order for MUDA to issue you a title deed for the property. This title deed is issued to the latest owner of the land if the original allottee did not build his house on the allotted land and the land itself was transferred/registered to another person.

The biggest task is to have MUDA retrieve the original file which has all the documents related to the original allotment. Then comes ....

Raj,

14th July 2015

Comment

MUDA's allotment of land for residential building is known as "Lease Cum Sale Agreement" between MUDA and the allottee. MUDA requires that the allottee builds his house within 10 years of allotment. Following are the documents which MUDA issues to its allottee:

1. Lease Cum Sale Agreement
2. parishkruta manjurAti patra (Alltoment approval letter)
3. swAdeena patra (Possession certificate)
4. Copy of bank challan indicating payment to MUDA made by the allottee towards the purchase of land.
5. KhAte (Document indicating the land owner's account to which property tax is paid). This can also be issued by Mysore City Corporation if MUDA has already handed over the locality to them.

Now, in India, any sale of immovable property is documented on "Sale Deed" issued on Stamp Paper. The deed describes the land and how the property was sold together with details of sale value, location, dimensions, and so on. The sale deed between MUDA and the original allottee is known as "Title Deed".

Raj,

14th July 2015

Comment

Thanks for your detailed explanation. My situation is different. My brother purchased it from the original allotee. Now it has to come in my mother's name. It is still a long, no building was built on that. So I don't know the rules for that. I have all the other documents which you have mentioned. They have agreed to do the khata transfer now as they have not issued the title deed. I am not sure of the fees. I have not been told about the fees. Once I get the khata transfer done I will check about the title deed part. Thanks again for providing such detailed info. I have been told to get the title deed in my mother's name. I will get in touch with you if I need more info. Thanks again for spending time to provide this info. It was very helpful to me. MUDA has its own loop holes which we cannot change unless a set of people oppose the same. Let us see.

21st July 2015

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