What khata is, and why A khata and B khata are not the same thing
What is khata, and does it matter whether it is A khata or B khata?
A khata is the municipal record that says a property exists on the tax rolls and identifies who is liable to pay property tax on it. In Bengaluru, an A khata denotes a property on the main municipal register with proper approvals; a B khata records a property on which tax is collected but which does not have the same approval status. It matters because lenders, approvals and resale all treat the two differently — and khata is a tax and identification record, not proof of ownership.
Khata is a record, not a title
This is the single most misunderstood point about khata, and it causes real losses. A khata identifies the person responsible for paying property tax on a property and records the property's details — dimensions, location, built-up area, tax liability. It is issued by the municipal body, and in Bengaluru that is the relevant city corporation.
Ownership comes from your registered sale deed and the chain of title behind it, supported by the encumbrance certificate. Khata is the municipal administration's view of that property. Somebody can hold a khata without being the lawful owner, and a lawful owner can find the khata still in the seller's name years after purchase because nobody applied for the transfer. Treat khata as necessary but never sufficient.
A khata and B khata
The important practical consequences of a B khata are: many banks will not lend against it or will lend on harder terms, getting a plan sanctioned to build or extend is harder, and the buyer pool at resale is smaller — which shows up as a discount. B khata property is not automatically illegal, and there have been repeated policy efforts in Karnataka to regularise such properties, with the rules changing over time. Because the position genuinely moves, ask your lawyer what the current status is rather than relying on an article — including this one.
Bengaluru has also been moving to a digital khata system, and the process for obtaining and transferring khata has changed accordingly. Check the current process on the municipal body's own portal.
- A khata — The property is on the main municipal register. In practice this is the status associated with properties that have the expected approvals and conversions in place, and it is what lenders, building plan sanctions and trade licences generally expect.
- B khata — The municipal body collects property tax on the property but records it separately, typically because of a deficiency in approvals, conversion of the land from agricultural use, or a betterment charge not paid. Owners of B khata property have historically faced difficulty getting building plan sanction, some approvals, and home loans from mainstream lenders.
Khata extract, khata certificate, khata transfer
- Khata certificate — Confirms that a khata exists in a named person's name for the property. Usually needed when registering a property and when applying for utilities or a loan.
- Khata extract — The details from the register — property dimensions, built-up area, assessed value, tax. Used for verification and valuation.
- Khata transfer — The application to move the khata into your name after you buy. It does not happen automatically on registration. You apply, with the sale deed, tax receipts and the previous khata, and pay a fee.
- Khata bifurcation / amalgamation — Splitting one khata into several (common when a large parcel becomes apartments or plots) or merging several into one.
What to actually do about it
- Ask the developer, before you shortlist, what khata the property will have and whether the land conversion is complete. Get the answer in writing.
- Ask to see the current khata and the latest property tax paid receipt for the land or project.
- Have your lawyer read the khata alongside the title chain and the encumbrance certificate — the three should agree with each other.
- Check with your bank early. If you already know your lender, ask them directly whether they lend on this project. A lender's refusal is informative.
- After registration, apply for the khata transfer into your name promptly, and keep the acknowledgement.
- Once transferred, pay property tax in your own name and keep the receipts — you will need them for resale and for any future loan against the property.
Outside Bengaluru
The A/B khata distinction is specific to how the Bengaluru municipal system evolved. Other cities and states have their own equivalents of the municipal property record — patta and chitta, property card, 7/12 extract, and others — with different names, different issuing authorities and different legal weight. The general principle carries: there is a municipal or revenue record of the property, it is not the same thing as your title, and it needs to be moved into your name after you buy.
Frequently asked questions
Is khata proof that I own the property?
No. Ownership comes from the registered sale deed and the title chain. Khata is the municipal record of who is liable for property tax and what the property is. You need both, and they should agree.
Can I get a home loan on a B khata property?
Many mainstream lenders decline or apply harder terms. Some lenders and non-banking finance companies will consider it. Ask your specific lender before you commit, because policies differ between banks and change over time.
Does khata transfer automatically when I register the sale deed?
No. You have to apply to the municipal body with the sale deed, tax receipts and the previous khata, and pay a fee. Buyers often discover this years later when they try to sell.
Can a B khata become an A khata?
Karnataka has run regularisation schemes and the rules have changed more than once, so the current answer depends on the present policy and the specific deficiency. Ask a property lawyer about the position on the date you are buying.
How long does khata transfer take?
It varies by municipal body and by how complete your paperwork is. Ask the developer or the municipal office for the current expected timeline rather than relying on a general figure.