Importance of owning a Khata !!! -"Just before buying a property in Bangalore ::::::::"

There is a lot of ambiguity in the sector about the importance of owning a Khata; here is a one point quick reference document which will help you just before buying a property in Bangalore. 

What is Khata?

A Khata is a legal identification document containing all the details of a particular property for instance, the name of the owner, size of the building or plot, exact location and other such important particulars which helps in filing the property tax to the concerned authority.

A Khata is an important document required in case of a building license, trade license or to obtain any loan from the bank or any other financial institutions. Since all citizens owning a property in India must pay property tax, you are eligible to own a Khata.

What is a title deed?

A title deed is a legal document used to prove ownership of a given property.

What is the difference between a title deed and a Khata?

A title deed is a legal document through which a person derives title or ownership of the given property, however, on the other hand a Khata is an account of assessment of property for the payment of property tax, it only describes ownership does not confer it.

Regulatory Bodies in Bangalore                                                                    

There are several regulatory bodies in Bangalore, most popular ones are:

BBMP

Bruhat Bengaluru Mahanagara Palike (BBMP) is the administrative body responsible for the civic and infrastructural assets of Greater Bangalore metropolitan area.

BBMP is responsible for “orderly development of the City”.

 BDA

The Bangalore Development Authority (BDA) is a governmental organization and the principal planning authority for Bangalore city.

The BDA is responsible for review and approval of all layouts in land that falls inside the Bangalore City limits.

 BMRDA

Bangalore Metropolitan Region Development Authority (BMRDA) is an autonomous body created by the Government of Karnataka for the purpose of planning, co-coordinating and supervising the development within Bangalore.

It is also responsible for all layouts in land that falls outside the Bangalore City limits.

How to apply for a Khata?

If one owns a property in Bangalore, they need to buy an application form (Rs.10/-) from BBMP or download it online and submit it. It generally takes 15 days to process the application. The following documents to be submitted with the application:

·         Title deed

·         Tax Paid

·         Sketch of the property clearly showing boundaries and location of the site

·         Improvement charges

·         Encumbrance Certificate for vacant sites

·         Flow chart of title

The Difference between an A-Khata and B-Khata  

A-Khata properties are those that exist in layouts that have been developed only after obtaining valid sanctions and approvals.

B-Khata properties are those unauthorized constructions in the City built on land without valid sanctions and approvals, despite what many think B-Khata is not an entitlement to the property, but simply an acknowledgement that tax for the said property is being paid to the Government. It is not a title deed, it is just an identification entered in a register titled “B” and hence the name B-Khata. B-Khata is not considered as a valid Khata extract.

For Buyers

It is always advisable for buyers to go in for an A-Khata property as in case of B-Khata one is not entailed to possess a building license, trade license or avail loans from banks or any financial institutions.

With B-Khata registration of property, a person will not be able to avail loans from nationalized banks. Therefore, it is suggested that the buyer invests in an A –Khata property with all clearances to avoid future financial hurdles.

We feel that only 5% of the sites in Bangalore are eligible to apply for an A-Khata because of minimal deviation which can be regularized. Constructions with minimal deviation and which have followed the norms set by regulatory bodies to a certain limit are only eligible for regularization the remaining will be titled as B-Khata itself.

Properties with minimal deviation can convert B-Khata to A-Khata; the following is required to do so:

·         You should have a DC converted property

·         Tax must be paid till date

·         Betterment charges for conversion needs to be paid to the BBMP