Hi
1) If all of the family members agree to mutate the property in the name of your mother in law, municipal authorities are bound to mutate the property in the name of your mother in law based on family member certificate only.
2) Please obtain No Objection certificate from all the family members to mutate the property in the name of your mother in law based on family member certificate.
3) Mutation of name in municipal records is NOT Transfer of ownership under transfer of property act.
4) Mutation is only a reference to that person who is liable to pay tax to the municipality.
5) For the purpose of transfer of ownership as envisaged in Transfer of Property Act, All of the family members can execute a settlement deed or partition deed for all of the properties or some of the properties at Sub-Registrar office, then the transfer of ownership will be complete with respect to the properties mentioned in the the Settlement deed.
6) Legal heir certificate is issued by the court based on family member certificate. Legal heir certificate will be useful if the Properties of the deceased are transferred to all of the legal heirs. The legal heirs can then claim Joint ownership of all of the properties. So with one legal heir certificate you can transfer ownership of all of the properties of the deceased.
7) If there are multiple properties in the name of deceased and all family members have cordial relationship and agreement on partition of properties it is always better to go for settlement / partition deed as properties derived
through Settlement / Partition deed will confer absolute ownership to the individuals (which is the best when compared to joint ownership) and the family members are free to sell/mortgage/develop these properties on their own accord and free will.
8) In a partition amongst family members, the stamp duty is 0.5% ON VSS subject to a maximum of Rs.20,000/- and Registration fee is Rs1000-/- The stamp duty is levied on Free market value( data available at sub-registrar office) or Consideration which ever is higher.
Hope this information is useful.