Knowing and Understanding Various Land Khatas in Bengaluru

December 27th, 2017

Amongst the many aspects that buyers look into before purchasing a property, Khata happens to be one of the most important document.

Buyers take many aspects into consideration before purchasing a property (or land). Many of them miss out on understanding and knowing what Khata their property/land falls into. Not surprisingly, many homeowners are not aware of what Khata their homes fall into even years after purchase.

What Is Khata?

Khata, when translated, means an ‘account’. As per Bruhat Bengaluru Mahanagara Palike (BBMP), Khata refers to the details of the property recorded in the property register of the Municipality or Corporation. It is the account of a person who has property registered in the city or within the corporation’s jurisdiction. There is also a municipal number given to the property when it is registered.

The Khata document contains the following details

  • Name of the property owner
  • Location of property and its area in measurement
  • Built-up area
  • Tax assessment and payment details

Perhaps, the most important aspect of a Khata document is that it identifies the person responsible for paying property tax, which indirectly indicates the ownership of the property. But, buyers should be aware that in Bengaluru, Khata is not the sole/conclusive evidence that a particular property belongs to someone.

This is where we need to understand the difference between Title Deed and Khata. There could be a slight confusion between these two. Title Deed is a written agreement between the buyer and seller related to the transfer of property to the buyer’s name, whereas Khata is the proof of a person paying taxes in the name of the property mentioned in the Municipal registry.

Why Is Khata Important and What Are Its Uses?

There are several uses of Khata and there are two documents related to it:

a) Khata Certificate
b) Khata Extract

Khata Certificate: This indicates the details, the property number and in whose name it is. The certificate is given only to the owner of the property or his family members and not to anybody else.

A BBMP Khata Certificate is required for:

  • Registering a new property
  • Transferring any property
  • Applying for water and electricity connections, trade and building licenses

Khata Extract: This is taken from the assessment register of BBMP. It gives details of property name, size, its use (residential or commercial), last assessed value and annual recurring value.

A BBMP Khata Extract is required for:

  • Buying a property
  • Obtaining a trade license

As per BBMP, both Khata Certificate and Extract can be obtained from the Assistant Revenue Officer or at any of the Citizen Service Centers.

Types of Khatas

In 2007, all the Municipal Councils and some villages in and around were brought under the Bangalore Mahanagara Palike (BMP). The municipal corporation BBMP (Bruhat Bengaluru Mahanagara Palike) was instituted and there was a need to simplify the collection of property taxes. To ensure this, BBMP began maintaining a list of all properties under two registers.

The first or A Khata register contains the list of all legally approved properties under the BBMP purview.

The second or B Khata register contains the list of semi-legal or illegal properties/ constructions (properties that did not have all the required approvals) under the BBMP purview.

Differences between Various Kinds of Khatas and Advantages of A Khata

A Khata document confirms the legality of the property or land, whereas B Khata does not/ is in violation of government regulations. In fact, B Khata might designate the concerned property as partly illegal.

A Khata confirms the payment of taxes by the Khata owner whereas, in the case of B Khata, the property may not be considered fully legal, even after the charges have been paid. Moreover, in the case of B Khata, BBMP has the right to penalize and levy charges for unapproved construction.

Perhaps, the best advantage of possessing an A Khata is the affirmation that the property conforms to all laws and regulations regarding property construction in Bengaluru. In the case of B Khata, things are exactly the opposite. In some cases, the property could be ‘legal’ in general terms but not necessarily as per the BBMP standards.

Another big advantage with A Khata land is that the owner has absolute right over his/her property allowing for construction of both commercial and residential buildings. It also facilitates an easy home loan or property loan process and helps owners obtain bank loans. Unfortunately, B Khata owners do not have these privileges.

Perhaps, the biggest hurdle for B Khata owners is when they wish to sell the property, it cannot be easily sold. The opposite is true for A Khata owners – it is easy to sell and the property gains are high on resale of such properties, so it’s a no-brainer that one must invest their hard-earned money only in clean properties with clear A-khata documents.

In simple terms, buying a property in the A Khata zone is the safest bet for any buyer as they need not look back on the issues and problems associated with the construction of property. Opting to go with a builder or developer undertaking a project in an A Khata land makes sense for any buyer and the same is true when it comes to purchase of land that falls under the A Khata zone.

Additional info to be considered:

A Khata properties can have trade licenses while B Khata property holders are barred from having trade licenses.

A Khata properties have construction permits and can expand the properties while B Khata properties are restricted from doing this.

A Khata is the final document certifying that your property is completely legal and available for trade while B Khata is the temporary document that needs to be upgraded to A Khata to avail the complete set of services associated with owning a property in Bangalore.

B Khata properties have to satisfy various criteria such as DC converted property, payment of all property taxes till date and betterment charges to be paid to BBMP to convert them to A Khata properties.

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