Guide to Understanding the Khata Transfer and Khata Registration

If you have recently bought a property and want your Khata registered for the very first time or if you want to transfer your Khata, you will need to know the process and the other intricacies involved. You should not worry about anything, as we have everything covered under one roof for you. So, let’s dig in!

Introduction to Khata 

A Khata is a document that provides evidence that the taxes on the property are up to date. A Khata is an Urdu word that refers to the keeping of the accounts of something. A Khata Certificate is an essential document because it gives the true picture of the property and whether the taxes on the property are updated or not. A Khata Certificate is required while the property is bought but not sold. 

People Also Read: Fees or Charges to Obtain an Encumbrance Certificate

Types of Khata 

There are two types of Khata on the property that can be issued by the local authorities depending upon the specifications of the property. These are as follows:

Khata A	Khata B
Khata A properties are the legal properties that have the original documents	Khata B properties are illegal properties that don’t possess the original documents
The ownership of these properties can be transferred to the others	The ownership of these properties cannot be transferred to the others
These properties can be resold easily in the open market	These properties cannot be resold easily in the open market
These properties can easily obtain the Building Regulations and the approvals of the plans	These properties cannot obtain the Building Regulations and the approvals of the plans
These properties can easily get loan approvals	These properties cannot get loan approvals
These properties can apply and obtain the connection for Utility Services	These properties cannot apply to get the approvals for the Connection of the Utility Services
These properties are covered by the BBMP jurisdiction	These properties are covered under the jurisdiction of the local authorities

How to Covert the Khata B properties to Khata A?

As we know, Khata B properties have many repercussions. Therefore, it is always advisable to convert them from Khata A by paying the Betterment Charges, which is 2% of the property’s value. 

Perks of holding a Khata Certificate 

A Khata Certificate is not mandatorily required at the time of the Sale of a property but it becomes essential to obtain it as soon as the purchase of a property. The perks of holding a Khata Certificate run as follows:

• Obtaining Loans from Banks: If the property owner is thinking of obtaining a property loan and wants to keep their property as collateral, banks may ask them to provide a Khata Certificate. 

• Resale Value: The properties whose Khatas are up-to-date enjoy a higher resale value than the other properties. 

• Legal Recognition: The legal recognition of the proprietor and the property is essential in every case, whether it is a Sale, Buy, or Encumbrance of the property, and a Khata Certificate is one of the most apt documents to reveal this. 

• Status of the Taxes: The most important function of a Khata Certificate is to provide details about the status of the taxes, whether they are paid or pending. 

People Also Read: Different Scenarios Requiring Tax Name Change

Contents of a Khata Certificate 

A Khata Certificate shall consist of the below-mentioned contents that deal with and cover all the aforementioned functions and perks and these are as follows:

• Name of the Owner: The first important thing covered by a Khata Certificate is the name of the legal owner.

• Property Specifications: A Khata Certificate gives the description, location, area, and measurement details of the property. 

• Valuation: The Khata Certificate also records the property’s annual value, which is arrived at by independent valuers. 

• Purpose of the property: The Khata Certificate also quotes the purpose for which the property is being utilised, whether it is for residential or commercial purposes.

• Status of the property: The Khata Certificates also note the status of the property, whether it is vacant or occupied.  

Khata Transfer 

A Khata Transfer is a process of transferring the Khata from one person to another at the time of the property’s sale. This process is used to transfer the Khata of the property taxes from the seller to the buyer to complete the sale transaction. The property taxes in the name of the new Buyer are required to be completed to update the municipal corporation’s records. 

Khata Transfer Property Name 

Property Name Khata Transfer is essential because of the below-mentioned reasons:

• Ownership: The Khata Transfer, in the name of the new owner, is required to keep the property tax account on the property updated with the updated ownership of the properties to file the tax returns. 

• Payment of Taxes: As soon as the Khata Name Transfer is done, the new owner of the property is required to pay the taxes on the property. 

• Rules and Documents: With the Property Name Khata Transfer, the new owner becomes well-versed in the applicable rules, regulations, and associated documents of the area in which the property is situated. 

Documents required for Khata Transfer 

The applicant is required to keep an account of the below-mentioned documents while applying for a Khata Transfer Certificate. 

• Application Form for obtaining the Khata Transfer
• The Title Deeds of the Property (Sale Deed/Transfer Deed/Release Deed/Gift Deed/Extinguishment Deed, etc)
• Copy of the Encumbrance Certificate
• Up-to-date Payment of the Taxes Receipt
• Sketch of the Property 
• Improvement Charges
• Death Certificate if the Khatedar has died
• Previously issued Khata Certificate
• National Savings Certificate
• Occupancy Certificate (if the property is new)

Khata Transfer Charges

The applicant is required to pay 2% of the Stamp Duty of the Sale Deed as the Khata Transfer Charges. Khata Transfer Charges are based upon the below-mentioned factors also and these are required to be kept in mind while making the payment of the Khata Transfer Charges:

• Type of the Property 
• Location of the Property
• Rules and Regulations applicable on the property 

Process of Khata Transfer 

To present an online and offline application for Khata Transfer, the applicant is required to follow the below-mentioned steps to register and obtain a Khata Transfer Certificate. 

• Notarisation of the Sale Deed: The first step in obtaining the Khata Transfer Certificate online is obtaining a notarised copy of the Sale Deed. 

• Obtaining the Encumbrance Certificate: The next step in this process is to obtain an encumbrance certificate that confirms the property is free from any encumbrances and has a good and marketable title, 

• Obtaining the Application Form: The next step is visiting the Sakala Portal. The applicant is required to click on the Suvarana Khata Application for Khata Transfer to present an online application and thereby obtain the application form by downloading it and filling in the required details of the applicant as per the Sale Deed and the details of the property. The application form can also be accessed here: Khata Transfer Application Form.

To present an offline application, the applicant must visit the office of the BBMP Assistant Revenue Officer to obtain the application form for Khata Transfer of Rs. 10 and thereby submit it to the office. In both types of application submissions, the applicants receive an acknowledgement form for tracking purposes. 

• Assessment of the Property: After the application is successfully submitted, the BBMP officials will assess the property to cross-verify whether the details provided in the application form are correct. 

• Khata Transfer Charges: Khata Transfer Charges are required to be paid upon the property.

• Pending Property Taxes: As soon as the Khata Transfer Charges are paid on the property, the applicant will receive an SMS on their registered mobile number about the pending property taxes that they are required to pay. 

• Issuance of the Khata Certificate: As soon as the pending property taxes have been paid on the property the Khata Certificate is issued by the government officials. 

Challenges in Khata Transfer 

There are some challenges faced by the applicants while applying for the Khata Transfer and these are as follows:

• Documentation Issues
• Obtaining approvals by the BBMP Officials
• Transfer Charges
• Delay in the Property Verification

Khata Registration

Khata Registration is the document used when a property is registered in the BBMP records for the very first time. This document is usually issued for newly built properties. 

Documents required for Khata Registration 

The applicant is required to keep an account of the below-mentioned documents while applying for a Khata Registration Certificate. 

• Application Form for obtaining the Khata Registration
• The Title Deeds of the Property 
• Copy of the Encumbrance Certificate
• Sketch of the Property 
• Improvement Charges
• Death Certificate if the Khatedar has died
• Possession Certificate 
• National Savings Certificate
• Occupancy Certificate (if the property is new)

Process of Khata Registration

To present an online and offline application for Khata Registration, the applicant must follow the steps below to register and obtain a Khata Registration Certificate. 

• Notarisation of the Sale Deed: The first step in obtaining the Khata Registration Certificate online is obtaining a notarised copy of the Sale Deed. 

• Obtaining the Encumbrance Certificate: The next step in this process is to obtain an encumbrance certificate that confirms the property is free from any encumbrances and has a good and marketable title, 

• Obtaining the Application Form: The next step is visiting the Sakala Portal. The applicant must click on the Suvarana Khata Application for Khata Registration to present an online application and obtain the application form by downloading it and filling in the required details of the applicant as per the Sale Deed and the property details. The application form can also be assessed here. 

To present an offline application, the applicant is required to visit the office of the BBMP Assistant Revenue Officer to obtain the application form for Khata Registration of Rs. 10 and submit it to the office. In both types of application submission, the applicants receive an acknowledgement form for tracking purposes. 

• Assessment of the Property: After the application is successfully submitted, the BBMP officials will assess the property to cross-verify whether the details provided in the application form are correct. 

• Khata Registration Charges: Khata Registration Charges are required to be paid upon the property.

• Pending Property Taxes: As soon as the Khata Registration Charges are paid on the property, the applicant will receive an SMS on their registered mobile number about the pending property taxes that they are required to pay. 

• Issuance of the Khata Certificate: As soon as the pending property taxes have been paid on the property the Khata Certificate is issued by the government officials. 

Difference between Khata Transfer and Khata Registration 

Khata Transfer	Khata Registration
A Khata Transfer is done when an old property changes hands	A Khata Registration is required for the newly built properties
A Khata Transfer Form is required for Khata Transfers	A Khata Registration Form is required for Khata Registrations
A Khata Transfer fee is a percentage of the Stamp Duty of the Sale Deed	A Khata Registration depends upon the size, location, and the area of the property
The procession time of the Khata Transfer application is 15-20 days	The processing time of the Khata Registration application is 30-60 days
For registration of the Khata Transfer, the pending taxes are required to be paid	For Khata Registration, the property registration tax is required to be paid upon.
The required documents for Khata Transfer are the Sale Deed. previous Tax Receipt, Encumbrance Certificate, and the Previously issued Khata Certificate	The required documents for Khata Registration are the Sale Deed, Possession Certificate, Layout plan Approval, and Address Proof

Conclusion

Khata Certificates are required for both Khata Transfer and Khata Registration. A Khata Transfer Certificate is required for already registered Khatas, and a Khata Registration Certificate is required for newly registered properties. 

Frequently Asked Questions on Khata Transfer and Khata Registration

Q1. Is Khata Transfer mandatory for registration?

Ans1. Yes, obtaining and possessing a Khata Transfer Certificate is mandatory at the time of registration. 

Q2. What is the cost of the Khata Transfer?

Ans2. The fee for Khata Transfer is 2% on the Stamp Duty of the Sale Deed

Q3. Can we pay Tax without Khata?

Ans3. Yes, we can pay tax without Khata as the Khata is the document used to denote whether the property taxes are up-to-date or not.

Q4. Which is better A Khata or B Khata?

Ans4. Khata A is much better as compared to Khata B. 

Q5. What is the difference between Khata and Registration?

Ans5. Khata records that taxes have been paid on the property, and registration registers the property in the municipal corporation’s records.

Q6. How to know if Khata is an A or B Property?

Ans6. If both the Khata Extract along the Khata Certificate are available, then it can be inferred that it is Khata A property, while if any document shows Form B Property Register Extract, then it will be counted as Khata B Property. 

Q7. Is Form 9 A Khata?

Ans7. Yes, Form 9 is A Khata for the non-agricultural properties. 

Q8. Can we sell a property without Khata Transfer?

Asn8. Yes, the property can be sold off without a Khata Transfer. 

Q9. What is Form 10 Land Registry Khata?

Ans9. A Form 10 Certificate is a Certificate that is issued when the land registry does not hold a record of the property.

Q10. Is Panchayat Khata Safe?

Ans10. Till the time the property is transferred legally, there is no harm in any type of Khata.