Understand the process before you start

Freehold procedure

Freehold is a way to clear the title of ownership of a property. It enhances the value of the property and gives the owner the Conveyance Deed as the final document. A property can be converted to freehold by the concerned authority, such as DDA or L&DO.

The concerned authority

The concerned authority is the authority under which the colony or area of the property falls, that is, the lessor body that allotted the property. Several authorities, such as DDA, L&DO and NDMC, offer a freehold scheme. The initial procedure is almost the same in all of them, with minor variations.

1. 1

   Submit documents

   Once submitted, the documents are scrutinised by the department through various channels. Any deficiency is reported to the applicant by post and must be fulfilled. Common deficiencies are dues of ground rent or maintenance charges, mismatched signatures, unclear photocopies, photocopies without the back side of the stamp paper, and blank witness columns. After each correction the file is checked again, and this cycle continues until every deficiency is removed.

2. 2

   Conveyance Deed

   After all deficiencies are removed, the authority issues four copies of the Conveyance Deed. Practice varies at this stage: DDA issues the deed for stamping and asks for it to be resubmitted, while L&DO executes the deed and directs the applicant to get it stamped and registered and to submit a copy of the registered deed.

3. 3

   Stamping

   Stamp duty is paid to the Collector of Stamps for the conveyance of the property from the authority to the owner (the original allottee or the agreement holder). The file is submitted, the TR-6 challan is paid, and the stamped deed is collected and checked page by page. For DDA, the stamped deed is resubmitted and the authority then calls the applicant to execute it.

4. 4

   Registration

   Registration is the presentation of the parties to the document, in person, at the Sub-Registrar's office. The form is filled, two copies of the Conveyance Deed are submitted, and the registered document is collected on the date given in the receipt.

Mutation in MCD

Mutation in MCD means changing the name of the person in whose favour a property is assessed in the records of the Municipal Corporation of Delhi. It is for property tax (house tax) purposes only and does not by itself confer legal title.

Getting the mutation done is the responsibility of the purchaser after a sale, and of the beneficiary after a death. It is also often asked for by banks, utility companies and future buyers.

An application for mutation, with a court-fee stamp affixed, is filed with the concerned MCD office along with these documents:

This procedure and its rules are governed by the Municipal Corporation of Delhi under its Act and rules, which are modified from time to time.

Stamp duty in Delhi

See the full indicative table and estimate your duty with our stamp duty calculator.

Glossary of property terms

Allottee

The person to whom DDA or another authority originally allotted the flat or plot.

Lessor

The authority (DDA, L&DO, NDMC) that leased the property and remains its owner until conversion.

Perpetual Lease

A lease without an end date that gives leasehold, not freehold, title.

Freehold

Full ownership, with the authority's interest transferred to the owner.

Conveyance Deed

The deed by which the authority transfers ownership. It is your title document after freehold.

GPA / ATS / Will

The chain of documents often used for older transfers of leasehold property. It does not by itself convey title.

Mutation

Updating ownership in the records: DDA for the lessor record, MCD for property tax.

Circle Rate

The minimum value notified by the Government for calculating stamp duty in a locality.

E-stamp

Electronic stamp paper for paying stamp duty, issued through authorised centres and banks.

Collector of Stamps

The office that assesses and collects stamp duty and adjudicates documents.

Sub-Registrar

The office where documents are registered and certified copies are issued.

TR-6 Challan

The challan used to deposit stamp duty when stamping is done through the Collector of Stamps.

Lal Dora

Village abadi land in Delhi, recorded differently from colonies developed by an authority.