Understanding the difference between Khata Transfer and Property Registration

by  Adv. Deepak Pandey  

5

5

  

10 mins

  

Unlocking Ownership Security: The Khata Transfer and Property Registration Experts

Thinking of buying a new property then in such a circumstance 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 then you will be required 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 the property taxes in the name of the new property owner from the older 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).

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 Khata properties are considered  legal propertyIn this type of Khata properties are considered  illegal
On this property, loans can be obtainedOn this type of property, no loans can be availed
In this Khata ownership of the property can be transferredIn this type of Khata ownership of the property cannot be transferred
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 propertiesNo 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

Navigating Khata transfer and property registration can be complex. Our experienced team streamlines the process, ensuring a smooth and efficient experience. We handle all the paperwork, approvals, and legalities, leaving you free to focus on what matters most.

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: With the help of Khata Transfer it can be ascertained who is the original owner of the property because the Khata is usually registered in the name of the legal owner of the property. 
  • Loans Approvals: With the registration of Khata the homeowner can easily get the approval of their loans if they are trying to keep the property as collateral for availing the loan from the bank. The bank returns demands for the updated Khata records. 
  • Market Value: If the homeowner wants to sell their property off in the market then in such case a good market value is offered to those 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. 

People also read: Know the intricacies of Khata Transfer

Documentation required for Khata Transfer

While applying for any work to be done from 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 

What are the Contents of Khata?

A Khata usually contains the below-mentioned contents however, it depends also upon the property to property therefore it becomes difficult to draw an exhaustive list for the same. The below-mentioned list 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 

Procedure to register the Khata Transfer

The procedure to register the Khata Transfer both the modes online and offline has been discussed in the further details 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 a 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 process of Khata Transfer is to file the application form by filling in all the required and mandatory details of the property. 
  • Submitting the Application Form: The third step in the process of Khata Transfer 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 Acknowledgment: After applying for Khata Transfer an acknowledgment receipt is received by the applicant which will be kept to track the application. 
  • Tracking down the Application: The applicant is required to track down the status of their application every week. If there is no progress in the status of the application then in such a case an RTI may be filed by the applicant after completion of two months. 
  • Property Assessment: After applying the assessment of the property is performed by an officer of the local authority and if the acknowledgement of the Khata Certificate is not received within two months an RTI can be filed for the same. 
  • Payment of Khata Registration Fees: The applicant is required to pay 2% as Khata Registration Fees of the value of the property as mentioned in the Sale Deed. After payment of the fees a notification is received on the registered mobile number. The property will be registered as soon as the notification is received. This fee is required to be paid within 15 days from the date of making the application. 
  • Downloading of the Khata Certificate: The last step after the assessment of the property is to download the Khata Certificate. 

Don't risk delays or complications. Our team of property law specialists provides expert guidance throughout the Khata transfer and registration process. We ensure your property rights are secure and all legal requirements are met.

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 the 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 Property Identification Number (PID) been assigned after completion of the verification by the revenue officer. 

People also read: Is Valuation Report a necessity in case of Demerger?

Introduction to Property Registration 

The registration of property is the process of transferring the ownership of the property 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 amount of 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. There is no choice with the homeowners to choose whether to register their property in their names or not. The property is registered by paying the necessary stamp duty and registration fees (the process of registering the property has been discussed in further detail). 

Documentation required for Property Registration

There are a bunch of documents that are required while the property registration in the name of the new owner is being completed. 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. There may be a requirement to have additional documents which depends upon the case-to-case basis. 

People also read: Property Valuation for Insurance

Property Registration Procedure

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

  • Submitting the Application for Registration: The first step in the process of property registration is to apply for property registration on either the website of the government or by visiting the office of the sub-registrar. In the Online mode of registration, the applicant is required.
  • Payment of the Stamp Duty: A meanwhile step which is required to 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 of the same is delivered to the applicant. 
  • Mutation Changes: The last step in the process of property registration is to change the name of the new owner in the mutation records. 

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

Difference between the Khata Transfer and Property Registration 

Grounds of Difference Khata Transfer Property Registration 
ApplicabilityIt 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 DeedNo, 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 PaymentNo stamp duty is required to be paid for the Khata TransferYes, registration of the property requires payment of the Stamp Duty 
Registration FeesNot 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 essentialAs 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 TaxesYes, the Khata Transfer Certificate is mainly for proof that the pending taxes on the property have been paid. Yes, in the property registration, the payment of taxes has to be paid up to date but if the property is a New Build then there will be no question of Property Taxes. 
Completion of the TransactionThe 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. 

Our streamlined processes minimize delays and unnecessary costs. We leverage technology and industry expertise to expedite your Khata transfer and registration, saving you valuable time and money.

Conclusion 

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

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 obtaining it the taxes of the property 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.

Even minor errors in Khata transfer and registration can cause significant problems. Our meticulous approach ensures all documentation is accurate and compliant, avoiding delays and potential legal issues.

Adv. Deepak Pandey

Adv. Deepak Pandey

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Deepak Pandey offers legal consultancy and advisory services with a keen emphasis on ethical and professional conduct to achieve favourable results. He has 5 years of experience in handling legal cases. As a result of his strong communication skills, Deepak is able to present his clients' cases with clarity and persuasion.

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