Substitution of title in NDMC areas, after a lessee dies

Substitution is NDMC's word for mutation on a lease: the process of putting the legal heirs' names on the record when the lessee or allottee dies. It applies where NDMC is the lessor. NDMC's Estate department says it follows the Land and Development Office's policy and procedure for substitution, so the steps resemble L&DO's. Where L&DO itself leased the property, the application goes to L&DO.

Application

On NDMC's prescribed form (Annexure VI), signed by every legal heir in whose favour substitution is sought.

Death certificate

The original, issued by the local body.

Affidavits

From all the legal heirs, in NDMC's format, sworn before a Magistrate or Sub-Judge, where the property goes to all of them or is substituted under a will.

Relinquishment deed

If one or more heirs give up their share to the applicant: a certified copy of the registered relinquishment deed, with the applicant's affidavit.

The will

A certified copy if it is registered, an attested copy if it is not.

• The beneficiaries give an affidavit and an indemnity bond in NDMC's format, with affidavits from all the other legal heirs.
• If affidavits from every heir can't be had, or the will is disputed or doubted, NDMC asks for probate of the will from a competent court.
• If the documents are in order and nobody disputes the will, NDMC's guideline says the substitution letter is issued within three months.
• Where the will names an executor: if the executor and the beneficiary are the same person, the property is substituted straight away. If the executor is someone else, who swears they have no beneficial interest and has handed over possession, the property goes to the beneficiary without an assent deed.

Where a court has declared the successor, NDMC asks for an attested copy of the death certificate, a certified copy of the plaint and of the order or decree, and the beneficiary's affidavit.

No unearned increase is charged when property passes within the family on succession. NDMC's guideline defines family as husband or wife, mother, father, son, daughter, and grandson or granddaughter. Substitution in favour of someone outside the direct line of succession is treated as a transfer, and unearned increase becomes recoverable. The same applies to a later relinquishment, release or gift to someone outside that line.

Substitution does not waive breaches of the lease that NDMC knows about, such as unauthorised construction or misuse. NDMC may issue a demand alongside the substitution letter, and its guideline says ground rent is not accepted until the breaches are removed or temporarily regularised. Any dues are worked out with NDMC's finance department.

NDMC's property tax FAQ says that after a sale, the tax record is mutated on the day the deed is registered, using the Registrar's online data, and outstanding dues must be cleared within a month. It asks for an indemnity bond and an affidavit in NDMC's format, transfer duty paid at NDMC's treasury, and payment of any dues. The FAQ does not cover death cases, so confirm those with NDMC's property tax department.

The substitution guideline on NDMC's website was written in 2007. Its structure still matches how NDMC describes the process, but confirm the current form and any charges with NDMC before filing.

This is a general explanation, not advice on your property. Procedure, rates and thresholds differ by state and municipality and change over time. Kabir Real Estates provides advisory and due-diligence assistance and does not issue title certificates or formal legal opinions. Where a matter needs one, we will tell you so.