Decoding Bengaluru's Khata System

While the excitement about buying a new home keeps a buyer going, the complications involved in the process are undeniable. The world of real estate is full of its own jargons, bouncing over a layman's head.
One such term is khata. If you plan to buy a residential property in Bengaluru, you come across this mysterious term.

PropGuide decodes what Khata under the Bruhat Bengaluru Mahanagara Palike (BBMP is the city municipal corporation) means.

The khata system
A must for home owners under the BBMP, a khata is a record or account that includes property assessment. Khata, which can be loosely translated into a book of records, is a legal document that is a must when applying for a bank loan, licence, etc.

Since it has the details of the owner and the property (location, size, and other particulars), it is also required for filing property taxes.

The twin sisters
A khata has two elements, a certificate and an extract. While a khata certificate is required for property registration and property transfer, a khata extract has the details of a property (size, valuation, whether it is used for commercial or residential purpose) and is required for obtaining a trade licence.

While khata-A properties are those that exist in layouts that have been developed after necessary approvals, khata-B properties are those unauthorised constructions built on land without taking approvals. It is to be noted that khatha-B is only a record of dues paid by a property owner; it is not a proof of the ownership. While buying a property, ensure it falls under khata-A. If the property falls under khata-B, nationalised banks may not consider it for loan approvals.

Who needs a khata?
All property owners under the BBMP jurisdiction are required to obtain a khata. While it does not necessarily confer ownership of a property, a khata enables an owner to pay his property tax. It should be noted that while an owner can pay property tax despite not holding a khata, the document is important in obtaining a licence or getting a loan from bank or financial institutions.

Khata transfer
When the ownership of a property is transferred to another for reasons other than outright sale, it is termed as khata transfer. This could be done as extending gifts or under a person's will in case of his death.

Documents required for khata transfer include:

• Title deed
• Receipts of taxes paid
• Details of the khata
• Rs 200 worth National Savings Certificates
• A certificate in case of the death of the previous owner
• To settle cases of a will, an affidavit is required confirming the applicant is a legal heir

The process
For a khata transfer, you need to:

• Have an authorised notary copy of the entire sales deed. An encumbrance certificate will be issued on the basis of on the sales deed within seven working days.
• Apply online or through any BBMP office
• Submit the filled khata registration form, along with the relevant documents and information and ensure that you receive a sealed acknowledgement.
• Be ready for a property assessment by the BBMP Revenue In-charge and Assistant Revenue Officer.

What happens after?
You will receive a formal communication from the BBMP, along with the property dimensions, assessed value as well as tax liability. After paying a khata registration fee of about two per cent of the sales deed value, you will be notified about the pending property tax. Once you pay this, you will be issued a khata extract. Once you receive communication about the pending taxes, the khata has already been transferred in your name.

You can check the status of the khata transfer at any BBMP office in 15 days. In case of a delay of more than two months, you can file an RTI to get the status.