If you are searching for the purchase of property or already own it, you might have heard the term called Khata. What is Khata and why is it important? Simply put, a Khata refers to an official document that records the details of a property of its present owner and its current legal status. This is the official paper required for all property transactions, which all property owners should know.
In this blog, you will learn about the different types of Khata, their differences, and why you might need a Khata Transfer. We have also prepared some answers to common questions to help you better understand this important concept.
What is Khata?
Technically, the Khata is a legal document that proves the ownership of property. In India, especially in cities like Bengaluru, it is an important document to register properties. The information in a Khata is location, owner’s name, and tax payments. Without a Khata, one cannot undertake property transactions; otherwise, it also brings about complications with bank loans or other similar legal clearances.
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Types of Khata
A Khata and B Khata are the two types that exist in Bengaluru and other parts of Karnataka. There are few points following down below which will discuss some of the types of Khata commonly used in property transactions, especially in Karnataka
A Khata
- Definition: The legal and official paper that proves ownership of the property is called Khata. There should be constructed property as well as all building and municipal regulations should be followed for this issue.
- Eligibility: An A Khata is obtained over the property when lawfully sanctioned by the municipal corporation. There must not be any illegal constructions or violations existing on the property.
- Advantages:
- Eligible for loans and property registration.
- Legal recognition from the municipal corporation.
- This facilitates the property transfer and sale process.
B Khata
- Definition: B Khata is an interim record of property ownership. This is issued for such properties that have not completed the legal approval process or have some minor violations.
- Eligibility: B Khata is given to properties that are not approved by the local authorities. It usually happens due to some sort of irregularities in construction, land use, and property documentation.
Advantages:
- It can be used for simple transactions for your property, such as tax payments.
- Khata is easy for properties in the development stage or awaiting approval.Disadvantages:
- Not eligible to be registered in any state’s property.
- This leads to problems at the time of loan procurements or the sale of the property.
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Comparison Table of Khata: A Khata vs B Khata
Feature | A Khata | B Khata |
Legal Approval | Fully legal and approved by the municipal authority | Pending approval or has legal violations |
Eligibility for Loans | Eligible for loans from banks and financial institutions | Not eligible for loans |
Property Transfer | Easy transfer and registration of property | Difficult transfer, not eligible for registration |
Use for Development | Suitable for new construction and development | Can be used for basic use but not for new construction |
Property Tax Payments | Can pay property taxes without issues | Can pay property taxes but with limitations |
Why Does One Need a Khata Transfer?
A Khata Transfer is often required if a person buys or sells real estate. The owners of the Khata need to reflect the name of the new owner so that any future property taxes, legal claims, and responsibilities are transferred.
Need for Khata Transfer
- It updates the records in the local authorities.
- It is in the rightful name of the new owner that the legal holder of the property is recognized.
- It helps in keeping the title of property clear thus preventing disputes in the future.
Key Benefits of Transferring Your Khata
- Clear Ownership: It ensures that the name of the new owner of the property appears in official records.
- Sale of Property and Loan Eligibility: It makes the sale of the property easier, and the property would be usable as collateral in issuing loans.
- Legal Protection: No more disputes over property rights or paying taxes.
- Prevents Legal Complications: The name of the previous owner’s name will still be recorded in the property records without a transfer of the Khata. A big problem when trying to move utilities or make any sort of legal claim on the property.
Conclusion
Understanding what kinds of Khata exist and their differences is one’s first step toward entering the market, if owning or planning to buy property: especially in cities like Bengaluru. Be it A Khata or B Khata, understanding what kind one has and what it means can be an organic stepping stone toward better navigation through the complexity of property transactions.
A Khata transfer is very crucial when there is a transaction of buying and selling. The transfer will prevent you from facing legal issues in court in the future. Some of the benefits of the eligibility of having a Khata transfer include clear ownership of the piece of property and the eligibility to receive loans in your name.
Frequently Asked Questions
Can a property with B Khata be sold?
It is slightly difficult to sell a property with B Khata. There is a good chance that the buyer might not be able to obtain a loan. Also, sometimes the registration process for the property might go wrong.
How long does a transfer of a Khata take?
Generally, Khata transfer will take around 15-30 days after submission of the needed documents to the concerned municipal office, depending on location and type.
How to convert B Khata to A Khata?
Before converting B Khata into A Khata, the property must be in line with the laws and regulations of the locality. It usually involves the clearance of all legal violations and any pending approvals.
Should Khata pay property taxes?
Yes, be it A Khata or B Khata, you can pay for property taxes. Tax issues are not complicated for the holders of A Khata.
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Sangeetha Mahesh Author
Sangeetha Mahesh is the founder of SriMas Associate, a company that helps people with licenses, insurance, and managing properties. She has studied many subjects like B.Com, MA, and LLB, and has over 15 years of experience in helping businesses and individuals with complicated rules and managing their assets. Sangeetha's work is focused on providing solutions that are good for her clients, and she works hard to give the best service. On her blog, she shares helpful tips and advice about licenses, insurance, and property management, so that her readers can make smart choices.
