What a khata is, and is not
A khata is an account. The municipal authority maintains a register of properties in its jurisdiction so it can assess and collect property tax, and your khata is your property's entry in that register. It records the property's identity, dimensions, location and the person liable for tax on it.
Two documents usually come up together:
- Khata certificate, confirming that the property is recorded in a named person's name.
- Khata extract, giving the details held in the register for that property.
A khata is not a title document and does not prove ownership. It says the municipality collects tax from a named person for a named property. Ownership is established by the sale deed and the chain of earlier conveyances, supported by an encumbrance certificate.
A seller presenting a khata as proof of ownership is either confused or hoping you are. Ask for the title documents.
A khata and B khata compared
| A khata | B khata | |
|---|---|---|
| What it records | A property treated as compliant with approvals and regulations | A property recorded for tax while flagged as not meeting them |
| Why it exists | The normal municipal record | So tax can still be collected from irregular properties |
| Bank lending | Generally available | Generally restricted or declined |
| Building plan sanction | Normal route | Can be obstructed |
| Buyer pool on resale | Wide | Narrow, often cash buyers only |
| Price | Market | Usually lower, for the reasons above |
A general description of how the two classifications differ in practice. Rules and regularisation policy have changed over time and have been subject to litigation. Confirm the current position with the authority and a property lawyer.
Why it decides your loan
A lender's security is the property. If the property is recorded as not complying with the authority's requirements, the lender's ability to realise that security is less certain, and lenders price or refuse uncertainty rather than absorb it.
That single fact produces a chain of consequences:
- You may not be able to borrow, which means funding the purchase from your own money.
- Your future buyer faces the same problem, so your exit pool shrinks to buyers who can transact without a loan.
- The discount is not free money. A lower price on a B khata property reflects the narrower market, not an oversight by everyone else.
- Your exit can take longer, because the smaller pool takes longer to find.
This is why the khata check belongs early in your process, before you have paid anything or fallen in love with the property.
How a property ends up on the B register
Common reasons, none of which are visible from the street:
- The layout was never approved by the relevant planning authority.
- Agricultural land was used for a non agricultural purpose without the required conversion.
- Construction deviated from the sanctioned plan, or was built without sanction.
- Required development charges or approvals were not completed.
- The property sits in an area absorbed into municipal limits with its paperwork unresolved.
Several of these are the same irregularities that layout approval checks are designed to surface, which is why the two checks belong together when you are buying land.
Buying into an approved, RERA registered project?
Every project on this site publishes its RERA registration, and the project team can share the khata position and the title documents for the land.
The move to digital khata
Karnataka has moved khata records onto a digital system, with the intent of making property records searchable and harder to misrepresent. For a buyer that is a clear improvement: a record you can look up is better than a paper document someone hands you.
Processes, portals and timelines for digital khata have changed during rollout. Do not rely on an older paper khata a seller produces, and do not rely on this article for the current procedure. Ask the authority or your property lawyer to pull the current record for the specific property, and compare it against what you were shown.
Does this apply to apartments?
Yes, though it plays out differently from a standalone plot or house.
In an approved apartment project, the land and the development go through the sanction process, and individual flats are assessed in the municipal books. The questions to ask are:
- What is the khata position for the land the project sits on?
- What will be issued for my individual unit, and when in the process?
- Who handles the khata registration or transfer for my flat, and is it included in the charges I have been quoted?
For an under construction purchase this sits alongside the other documentary checks: the RERA registration for your phase, and the Occupancy Certificate before you take possession. A project that is properly approved and registered is unlikely to spring a khata problem on you, but it is still a question with a documented answer, so ask for it.
What to check before you commit
Ask which classification the property carries
In writing, early, before any payment. A seller or agent who is vague about this is telling you something.
Pull the current record yourself
Through the authority's current system rather than relying on a paper document handed to you. Compare the details against the property you are being shown.
Separate khata from title
Ask for the sale deed, the chain of prior deeds, and an encumbrance certificate covering a meaningful period. The khata does not substitute for any of them.
Get your lender's position in writing
Before you pay a booking amount. Ask specifically about this property, not about the lender's policy in general.
Have a property lawyer read the documents
This is the check that catches what a checklist cannot. It costs a fraction of the transaction and it is the only step here that involves someone professionally liable for the opinion.
This is a general explanation of a municipal record and how it affects financing. It is not legal advice, the rules and regularisation policy change, and your situation turns on the specific documents. Engage a property lawyer with local experience before you sign anything.
What is a khata certificate?
A record maintained by the municipal authority that identifies a property and its owner for the purpose of assessing and collecting property tax. It is an account of the property in the municipal books. It is not evidence of ownership or title, which come from the sale deed and the chain of prior documents.
What is the difference between A khata and B khata?
An A khata entry records a property as compliant with the local authority's approvals, plan sanctions and regulations. A B khata entry exists so that tax can be collected from properties that do not meet those requirements, and it flags the property as irregular. The practical consequences follow from that flag rather than from the letter itself.
Can I get a home loan on a B khata property?
Most mainstream lenders decline or heavily restrict lending against B khata properties because of the irregularity the classification records. Some lenders and non banking finance companies may consider it on different terms. Treat financing as a question to settle before you commit rather than after, and get the lender's position in writing.
Is a khata the same as a title deed?
No, and conflating the two is the most common and most expensive misunderstanding here. The khata records who pays tax on the property. Title comes from the sale deed and the chain of earlier conveyances, supported by an encumbrance certificate showing registered transactions over a period. You need both checked, and a khata alone proves nothing about ownership.
Can a B khata property become A khata?
Regularisation routes have existed at various times and have been subject to policy change and litigation, so whether one is currently available depends on the rules in force and on the specific irregularity. Do not buy on the assumption that regularisation will happen. Ask a property lawyer about the current position for that specific property.
Does khata apply to apartments in a large project?
Yes. Individual flats in an approved project are normally assessed and recorded in the municipal books, and a khata is issued or transferred for the unit. For a project under construction, ask the developer what the position is for the land, what will be issued for your unit, and at what point in the process.