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Khata

by Sirf Broker
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1. What Is Khata?

Khata is a legal document maintained by the local municipal authority — such as BBMP in Bengaluru — that records a property’s details for taxation and municipal compliance purposes. The word “Khata” literally means “account” in Hindi, and it functions as the property’s official account with the civic body.

A Khata contains the property owner’s name, property size, built-up area, location, property identification number, and tax assessment details. It does not prove land ownership — that is the role of the sale deed — but it confirms that the property is officially registered with the municipal corporation for taxation, utility connections, and construction approvals.

Simple understanding: Khata is the municipal government’s record of your property. Without it, you cannot pay property tax legally, get utility connections, obtain building permits, or apply for a home loan.


2. What Khata Contains

  • Property owner’s full name
  • Property identification number (PID)
  • Property address and location details
  • Built-up area and carpet area
  • Property type — residential or commercial
  • Tax assessment value and dues status
  • Ward number and municipal zone

3. Types of Khata

TypeMeaningLegal Status
A KhataProperty has all legal approvals, a sanctioned building plan, and complies with building regulations and tax normsFully legal — eligible for loans, trade licences, building permits, OC, CC, and resale
B KhataProperty lacks full legal approvals or was built on land without proper sanctions; tax collected in a separate BBMP registerSemi-legal — Karnataka High Court ruled B Khata properties as illegal in 2014; no loans, no permits, no trade licences

Simple rule: A Khata = fully legal and transactable. B Khata = legally deficient; must be converted to A Khata before any transaction, loan, or construction.


4. A Khata vs B Khata — Key Differences

FeatureA KhataB Khata
Legal statusFully compliantNon-compliant / semi-legal
Home loan eligibilityYes — banks fund freelyNo — banks reject
Building permitGrantedNot granted
Trade licenceCan be obtainedCannot be obtained
Resale/transferPermittedRestricted
Renovation/extensionBBMP grants permissionStrictly prohibited
OC / CC eligibilityYesNo

5. How to Get Khata (Bengaluru / BBMP Process)

For new property (Khata registration):

  1. Collect documents — Sale deed, property tax payment receipt, encumbrance certificate, building plan approval copy
  2. Submit application — Online via BBMP’s Sakala portal or offline at the nearest BBMP ward office
  3. Pay Khata registration fee — 2% of the stamp duty paid at the time of property registration
  4. BBMP verification — Ward officer inspects property details
  5. Khata certificate issued — Typically within 30 working days under the Sakala Act

For Khata transfer (resale property):

  1. Submit the application with the original sale deed, previous Khata copy, encumbrance certificate, and tax paid receipts
  2. Pay transfer fee — 2% of stamp duty value
  3. BBMP updates records and issues a new Khata in the buyer’s name

For B Khata to A Khata conversion:

  • Pay betterment charges (improvement charges) to BBMP
  • Submit the building plan regularisation under the applicable state scheme
  • Pay pending property tax dues with a penalty
  • BBMP issues A Khata upon compliance verification

6. When Khata Is Required

  • Paying property tax to the municipal authority
  • Applying for building plan approval or a renovation permit
  • Obtaining permanent electricity, water, and sewage connections
  • Applying for a home loan or a loan against property
  • Obtaining a trade licence for commercial premises
  • Property resale and ownership transfer
  • Applying for Occupancy Certificate (OC) or Completion Certificate (CC)

7. Khata Across Indian States

Khata is primarily a Karnataka and South Indian term. Equivalent documents in other states:

StateEquivalent Document
Tamil NaduPatta (for land ownership)
Andhra Pradesh / TelanganaPattadar Passbook
MaharashtraProperty Card (City Survey Record)
Delhi / North IndiaMutation Records / Nakal
KeralaThandaper

The function is similar — all are municipal or revenue records identifying property ownership and tax liability.


8. Tips for Buyers

  1. Always verify Khata status before purchase — A Khata is the only safe category for investment
  2. Check Khata on the BBMP Sakala portal — Verify independently; do not rely on the seller’s copy
  3. Ensure Khata is in the seller’s name — Mismatched names indicate incomplete mutation
  4. Transfer Khata immediately after registration — Apply within 3 months of the sale deed registration
  5. Check for pending property tax dues — Outstanding dues pass on to the buyer if not cleared
  6. Avoid B Khata properties — Impossible to get a home loan, OC, or building permit

9. Common Mistakes to Avoid

  • Buying B Khata property, assuming easy conversion — Conversion involves betterment charges, regularisation, and a lengthy process with no guarantee
  • Not transferring Khata after purchase — Revenue records remain in the seller’s name, creating complications in resale and loans
  • Assuming Khata proves ownership — Khata is a tax record, not a title document; ownership is only proved by a registered sale deed
  • Ignoring pending property tax dues — Dues attached to property transfer to the new owner upon purchase
  • Not verifying Khata matches sale deed details — Discrepancies in area, owner name, or PID number signal fraud or errors
  • Skipping Khata check in resale — Resale without a valid A Khata in the buyer’s name is a serious legal and financial risk

10. FAQs

What is Khata in real estate?
Khata is an official document issued by the municipal authority recording a property’s details — owner name, size, location, and tax liability — for taxation and municipal compliance purposes. It is mandatory for property tax payment, loans, utility connections, and building permits.

What is the difference between A Khata and B Khata?
A Khata is issued to fully compliant properties with all legal approvals — eligible for home loans, building permits, and resale. B Khata is issued to properties lacking full sanctions and is legally deficient — ineligible for loans, trade licences, and construction permits.

Does Khata prove property ownership?
No. Khata is a municipal tax record, not a title document. Legal ownership is proved only by the registered sale deed. However, Khata is essential for all municipal services, loans, and construction approvals.

How do I transfer Khata after buying a property?
Apply for Khata transfer at the BBMP ward office or online via the Sakala portal within 3 months of registration. Submit the sale deed, previous Khata copy, EC, and tax receipts, and pay a transfer fee of 2% of the stamp duty value.

Can I get a home loan on a B Khata property?
No. Banks and housing finance companies do not fund B Khata properties as they are considered legally non-compliant. Only properties with a valid A Khata are eligible for home loans and loans against property.

Is Khata applicable across all Indian states?
Khata is primarily used in Karnataka. Other states have equivalent documents — Patta in Tamil Nadu, Property Card in Maharashtra, and Mutation Records in North India — serving the same purpose of linking property to municipal tax records.


Practical Takeaway: Khata is not just a tax document — it is your property’s municipal identity. An A Khata confirms your property is legal, financeable, and transactable. Always check Khata status before buying, transfer it immediately after registration, and never settle for a B Khata property without fully understanding the conversion risks and costs involved.