Apr 6, 2022

Real Estate- What are Khatas & their significance?

Felicity, Khatas, Title Deed

‘Khata’ is one term that you may have come across quite frequently while looking at or thinking about real estate purchases. What does it mean and why is it important for you to ensure that this document is in your possession? Simply put, the word ‘Khata’ means the account and it is a legal document that identifies a specific property and contains important details regarding the ownership of that property. It is also termed as a legal revenue document that’s required while authorizing any property for trade. The concept of Khata came into existence in 2007 after the formation of Bruhat Bengaluru Mahanagara Palike (BBMP) to simplify the property tax collection process in Bengaluru.

It is the account of a person who has property registered in the city or within the corporation’s jurisdiction and also includes 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

 

You may face some confusion between the term ‘Title Deed’ and ‘Khata’, so to be clear, a 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.

Features and Benefits of Khata:

     • Applicable for the people of Bengaluru

     • Decides evaluation of the property’s owner

     • Provides detailed property information

     • Helps in getting trade licenses, house loans, etc.

     • Helps you in filing and paying property tax

     • Helps in obtaining electricity and water connections

 

Types of Khatas:

There are two types of Khata documents (A & B) and there are certain differences between the two. 

‘A’ Khata document attests that the applicable property taxes have been correctly paid by the property owner to the BBMP. It signifies that the property obeys all government regulations and building bylaws related to properties in Bengaluru. The ownership of A-Khata document permits property owners to apply for building plan approvals, trade licenses, building licenses, and to avail bank loans on the property.

‘B’ Khata document signifies that the owner’s property in Bengaluru is illegal or is in violation of government regulations. Property owners who have their property listed under B Khata cannot sell their property, loans are denied to them, and they can’t obtain construction or home extension permits. Essentially, their property is termed as illegal or semi-legal and such properties will face difficulty in getting electricity and water connections. By paying betterment fees and adopting the guidelines put in place by the BBMP, it is possible to convert a B-Khata into an A-Khata. Buildings constructed in violation of bylaws, Constructions carried out on revenue land, Properties built on unauthorized land, Buildings without completion or issuance certificates are all liable to carry B-Khatas. 

Any Khata that is filed or issued online is known as an ‘E’ Khata, and it allows property holders to make online payment of their property taxes.

 

How to apply/register for Khata?

     • Get a copy of the sale deed attested by a notary

     • Apply for an Encumbrance Certificate (EC), which should be issued within 7 days

     • Get the application form from BBMP’s official website or visit the BBMP office

     • Fill up the application form and enclose all related documents

     • Submit the application form to the nearest BBMP office

     • File RTI in case you don’t get a response within 2 months

     • Property assessment will be performed by a revenue officer from BBMP

     • Registration fee amounting to 2% of property value needs to be paid

     • Receive Khata in the next 5 weeks

 

At Bricks & Milestones, we’d be happy to help you understand more about Khata certificates and any other real estate queries you may have. Please reach out to us in case you want to find out about the status of our properties or even if you generally want to know more about the legalities and procedures involved in the process.