Understanding the difference between Khata Transfer and Property Registration

If you are thinking of buying a new property, you will require the Khata of the property to be updated, and you will also be required to complete the process of registration of the property in your name. You will need to understand the difference between these two. Let’s understand them in more detail. 

Introduction to Khata Transfer 

This is a process that is used to transfer property taxes in the name of the new property owner from the old one. Khata stands for keeping an account of the taxes. Khata is the document that specifies if the taxes are paid or pending on the property. 

A Khata Certificate can never be compared to a Sale, Transfer, or Gift Deed (the difference between a Khata Certificate and a Property Registration has been discussed in further detail).

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What are the Types of Khata?

There are two types of Khata – Khata A and Khata B. These two are different and that’s why a bifurcation between them is necessary. Let’s learn more in detail. 

Khata A	Khata B
In this type of Khata, properties are considered  legal property	In this type of Khata, ownership of the property cannot be transferred
On this property, loans can be obtained	On this type of property, no loans can be availed
In this Khata ownership of the property can be transferred	In this, Khata properties are considered  legal property
These properties fall under the BBMP	These properties fall under the local authorities
These properties have full permission to construct and build	These properties have no authority to construct
Building Plans and approvals can be obtained for these properties	No building plans and approvals can be obtained for this kind of properties
Property can be resold easily	These types of properties cannot be sold
Application for water, electricity, and gas connections can be obtained	No such kind of application for utility connections can be applied for

Benefits of Khata Transfer 

As we have already discussed what a Khata is now, let’s understand the benefits offered by the Khata Transfer. 

• Status of the Property Taxes: With the Khata Certificate, a clear picture of the current status of the property taxes can be obtained. It jots down whether the taxes are paid or pending upon the property. 

• Recognition of the Property Owner: Khata Transfer can help determine who the original owner of the property is because the Khata is usually registered in the name of the legal owner of the property. 

• Loan Approvals: With the registration of Khata, homeowners can easily get loan approvals if they are trying to keep the property as collateral for a bank loan. The bank returns demands for updated Khata records. 

• Market Value: If the homeowner wants to sell their property in the market, a good market value is offered to properties whose Khata are up to date. 

With these benefits, it becomes essential and obligatory on the part of the homeowner to register and keep their Khata up to date. 

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Documentation required for Khata Transfer

While applying for any work to be done by the department of the Indian government, it is always advised and essential to keep the necessary and required documents handy to avoid any chaos and to swiftly complete the said process. The essential documents for Khata Transfer are as follows:

• Identification Documents of the Buyer
• Sale Deed or Gift Deed (as the case may be)
• National Savings Certificate
• Flow Chart of the Property 
• Encumbrance Certificate’s Certified Copy 
• Sketch of the Property 
• Previous Khata Certificate
• Improvement Charges Payment Proof 
• Occupancy Certificate (If buying the property for the first time)
• Death Certificate (in the case of the death of the Khata Holder)
• Latest and Previous Tax Receipts 

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What are the Contents of Khata?

A Khata usually contains the below-mentioned contents; however, it depends also upon the property to property, so it becomes difficult to draw an exhaustive list. The list below is just an illustrative one. 

• Name of the Property Owner
• Measurement, including the size of the property. 
• Area and location of the property 
• Value of the Property
• Build-up area of the property 
• Status of the property, whether vacant or occupied 

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Procedure to register the Khata Transfer

The procedure to register the Khata Transfer, both the modes online and offline, has been discussed in further detail below:

• Attestation of the Deed: The applicant is required to get the Sale Deed notarized. 

• Encumbrance Certificate: After obtaining the notarized Sale Deed, an encumbrance certificate is required to be obtained. An Encumbrance Certificate acts as proof that the property is free from all the encumbrances and there are no pending charges, liens, or mortgages on the property. 

• Obtain the Application Form: The first step in the procedure is to obtain the application form from the BBMP Revenue Officer by paying the Application Form fee of Rs. 10. The application form can be obtained online by visiting the Sakala website.

• Filing the Application Form: The next step in the Khata Transfer process is to complete the application form, which requires all the required and mandatory details of the property. 

• Submitting the Application Form: The third step in the Khata Transfer process is to submit the application either on the portal or to the office of the sub-registrar, along with all the required documents and the necessary stamp duty.

• Receipt of the Acknowledgement: After applying for Khata Transfer, the applicant receives an acknowledgement receipt, which will be kept to track the application. 

• Tracking the Application: The applicant is required to track the status of their application every week. If there is no progress after two months, the applicant may file an RTI. 

• Property Assessment: After applying, the property is assessed by a local authority officer. If the Khata Certificate acknowledgement is not received within two months, an RTI can be filed. 

• Payment of Khata Registration Fees: The applicant is required to pay 2% of the value of the property as mentioned in the Sale Deed as Khata Registration Fees. After payment of the fees, a notification will be received on the registered mobile number.
  
  The property will be registered as soon as the notification is received. This fee must be paid within 15 days from the date of the application. 

• Downloading of the Khata Certificate: The last step after the assessment of the property is to download the Khata Certificate. 

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E- Khata 

The services of E-Khata are only available to the properties registered under Khata A because, as we have already discussed, they hold legal status, and various services can be availed by these kinds of properties.

Hence, the services of E-Khata can be availed by the properties registered under Khata A as a Property Identification Number (PID) has been assigned after the revenue officer has completed the verification. 

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Introduction to Property Registration 

Property registration is the process of transferring ownership from one person to another. It is used when a property is being transferred by way of Sale, Transfer, or Gift Deed.

When the ownership rights of the property are transferred, it is required to be intimidated by the government authorities, and this is called the process of property registration. 

Benefits of Property Registration

With the registration of the property, various benefits have been attached to it. These benefits run as below:

• Resale Value of the property: With the registration of the property it becomes easier to get a good market value of the property at the time of selling it. 

• Ownership of the Property: The owner of the property can be established with the help of the registration. The Title Deeds to the property always mention their name. 

• Mortgage: A registered property can be easily mortgaged, and hence, a handsome loan can be obtained from it by mortgaging the property to the lender. 

• Legal Status: Registration gives the legal rights and establishes the legal status of the property and hence the owner will be in a better position to exercise their rights against the world in case of any kind of encroachments. 

The Property Registration Mandatory?

Yes, it is mandatory to register the property in the name of the new owner. According to Section 17 of the Registration Act, 1908, it became mandatory to register the property with the local government.

The homeowners have no choice but to register their property in their names. They do so by paying the necessary stamp duty and registration fees (the process of registering the property has been discussed in further detail). 

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Documentation required for Property Registration

A bunch of documents are required while the property registration is being completed in the name of the new owner. These documents are as follows:

• Identification documents of both parties
• Transfer Deed, Sale Deed, and the Gift Deed
• Approval of the Building Plans
• Completion Certificates 
• Certified Copy of the Encumbrance Certificate
• No Objection Certificate 
• Survey Plans
• Mutation Documents 
• Property Tax Receipts
• Occupancy Certificate
• A copy of the Power of Attorney
• Legal Heir Certificate (if the property is being sold by the Legal Heirs of the deceased)

The above list of documents is not exhaustive enough. Additional documents may be required, depending on a case-to-case basis. 

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Property Registration Procedure

The process of property registration is a lengthy and cumbersome procedure because the same application can be filed in both modes, i.e., online and offline. The procedure is as follows:

• Submitting the Application for Registration: The first step in the process of property registration is to apply for it on either the government website or by visiting the office of the sub-registrar. In the Online mode of registration, the applicant is required.

• Payment of the Stamp Duty: Meanwhile, a step that must be fulfilled by the applicant is to pay the stamp duty on the value of the property. 

• Execution of the Documents: The applicant is required to visit the nearest sub-registrar office along with 2 witnesses to execute the Sale Deed in the presence of the sub-registrar. 

• Verification by the sub-registrar: The next step after submitting the necessary documents and getting them executed in front of the witnesses and the sub-registrar it is the duty of the sub-registrar to proceed with the verification of the documents submitted by the applicant and the payment of the applicable fees.

• Completion of Registration: After completing all the formalities, the Sale Deed is registered, and a registered copy is delivered to the applicant. 

• Mutation Changes: The last step in property registration is to change the new owner’s name in the mutation records. 

This is how the process of property registration is completed via both the available modes. 

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Difference between the Khata Transfer and Property Registration 

Grounds of Difference	Khata Transfer	Property Registration
Applicability	It deals with only the property taxes. It transfers the tax of the property to the new owner.	It deals with the overall registration and transfer of the property in the name of the new owner.
Sale Deed	No, a Sale Deed is not a mandatory document that is  required to change or register the Khata Transfer	Yes, a Sale Deed can be a mandatory document if the property is being sold.
Stamp Duty Payment	No stamp duty is required to be paid for the Khata Transfer	Yes, registration of the property requires payment of the Stamp Duty
Registration Fees	Not much registration fees are charged for the Khata Transfer	Yes, registration fees are required to be paid upon the Property Registration.
Registration Mandatory	The Registration of the Khata Transfer is essential	As per Section 17 of the Registration Act, 1908 it is mandatory to register the property in the name of the new owner.
Parties	The applicant/owner of the property is the only party under Khata Transfer	There are two parties to the property registration i.e. Seller and Buyer, Transferor and Transferee, or Giftor and Giftee (as the case may be)
Payment of Pending Taxes	Yes, the Khata Transfer Certificate is mainly for proof that the pending taxes on the property have been paid.	It deals with only the property taxes. It transfers the property tax to the new owner.
Completion of the Transaction	The Khata Transfer cannot be done with a valid Sale Deed, Transfer Deed, or Gift Deed.	Property Registration can be completed without a Khata Transfer Certificate.
Issuing Authority	The Khata Transfer is issued by the local authority.	Property Registration is completed by the sub-registrar of the area.

Conclusion 

There is a difference between Khata Transfer and Property Registration. Khata Transfer is dependent upon the Property Registration Deed, but Property Registration is not dependent on it.

Therefore, it can be said that the Khata Transfer is for keeping the accounts and Property Registration is for registering the property in the name of the new individuals. 

Frequently Asked Questions on the Difference Between Khata Transfer and Khata Registration

Q1. What is the difference between a Title Deed and a Khata?

Ans1. Khata is the account of the property and the Title Deeds are the documents used to transfer the ownership of the property. 

Q2. What is Khata Transfer in Bangalore?

Ans2. A Khata Transfer in Bangalore is an essential requirement, as without it, the property’s taxes cannot be transferred to the new owner. 

Q3. How to ensure a successful Khata Transfer of Property?

Ans3. The successful Khata Transfer must obtain the Khata Certificate after the transfer of it in the name of a new name.

Q4. What is the difference between Khata Transfer and Khata Registration?

Ans4. Khata is required to be registered when the property is first-time registered and the Khata Transfer is required to be transferred when the property is being transferred. 

Q5. Is Khata Transfer mandatory for property tax?

Ans5. Yes, a Khata Transfer is required to keep the property tax updated.