Is it Safe to Buy B Khata Property in Bangalore?

Recently, one of my clients asked me is it safe to buy B Khata property in Bangalore. I told him that it can be risky to buy B Khata property. But, there are some advantages like you can get flats at lower costs.

Is It Safe to Buy B Khata Flat in Bangalore? 

I said before buying a B Khata property, you should go through the pros and cons of buying a B Khata property:

Advantages:

• Lower Cost: Generally more affordable than A Khata properties.

• Immediate Possession: Often available for quicker possession.

Disadvantages:

• Legal Uncertainty: B Khata properties may have incomplete documentation and non-compliance with building regulations.

• Loan Restrictions: Nationalised banks typically do not provide loans for B Khata properties.

• Limited Permissions: Difficulties in obtaining construction permits, trade licences, and utilities like water and electricity.

• Legal Status: Considered illegal or semi-legal as per Karnataka High Court.

Conversion to A Khata:

• Process: B Khata properties can be converted to A Khata by paying betterment fees and other penalties.

• Benefits: Conversion allows for legal recognition, easier access to loans, and smoother property transactions.

Buying a B Khata property involves significant risks due to legal and compliance issues. It is best to consult with a legal expert and consider converting to A Khata for safer investment.

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A Khata properties in Bangalore are legally approved and have complied with all municipal regulations, while B Khata properties often lack certain legal approvals and may have compliance issues. My husband loved the property but came to learn that it has B khata. We knew that B khata property does not comply with the building rules; hence, we consulted with a legal expert to know is it good to buy B khata property in Bangalore. We learned that B khata has both advantages and disadvantages, and it might not be called a safe option, but it can be made safe by converting the property into A khata.

Is It Safe To Buy B Khata Flat In Bangalore?

Let me first share the advantages and disadvantages of B khata so that you understand why people buy it:

• Lower Cost: 

B Khata properties are generally more affordable than A Khata properties, making them accessible for buyers on a tight budget.

• Immediate Possession: 

You can often take possession of a B Khata property more quickly than an A Khata property, which can be beneficial if you need a home urgently.

• Legal Uncertainty: 

B Khata properties may have legal issues, including incomplete documentation and non-compliance with building regulations, leading to potential legal complications.

• Resale Difficulty:

   

These properties typically have a lower resale value and may be harder to sell in the future.

• Loan Challenges: 

Securing a home loan for a B Khata property can be difficult, as banks usually prefer A Khata properties.

• Risk: 

Buying a B Khata property requires a higher tolerance for risk and a willingness to invest time and resources to resolve legal issues.

Since B khata properties possess legal issues, people prefer not to buy B khata properties, but that does not mean that they are not safe. 

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When I was buying a property in Bangalore, I was a bit confused regarding the property related jargons like A, and B Khata. I was confused and started enquiring, “ is B Khata safe?” After my research, I got to know that the idea of "Khata" was developed by the authorities in 2007 when the Bruhat Bengaluru Mahanagara Palike (BBMP) was established.

Khata was introduced with the intention of streamlining Bangalore's property tax collection. Property tax collection in Bangalore was handled by three distinct organisations prior to 2007, which made it difficult to be efficient. The BBMP started keeping two independent registers—the BBMP A Khata and B Khata—in order to avoid any form of repetition.

I asked one of my friends, Arvind who is a property lawyer, whether,

He told me that having a B Khata property does not pose any special safety risks. However, he mentioned a few B Khata property problems. You can also sell your home with the aid of a B Khata. A B Khata does not grant building rights, therefore you may run into problems if you want to build on or renovate your land. Additionally, because a B Khata is not a valid or recognised ownership document, you cannot obtain a loan from a nationalised bank against a B Khata property. The interest rates for loans secured by B Khata properties are greater than those for A Khata properties, although individuals can still apply for loans from private banks.

I’d like to conclude my answer regarding, “ is B Khata safe?” I hope this helps:)

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Hi Buddy,

I was planning to purchase a B Khata property in Bangalore. I was not that aware of the legal technicalities. Hence, I decided to take the advice of a property lawyer. I was not even aware of what B Khata means until I visited him. I would also like to recommend to you guys, that if you have any property-related legal issues, you can opt for the NoBroker legal assistance service, as they helped me a lot with the legal formalities.

I got to know from the property advocate, that the B Khata is a separate record maintained by the BBMP that includes illegal properties (as per a Karnataka High Court judgement issued in December 2014) that have ownership in Bangalore, even if the owner has paid the civic rates for the property. The B Khata refers to the Karnataka Municipal Act, 1976, Section 108A, as revised in 2009. This record allows the BBMP to collect taxes from illegally constructed buildings, such as those that violate bylaws, are built on revenue land, have unapproved layouts, or lack completion or issuing certificates. It was now quite clear to me about the B Katha meaning.

I was aware that buying B Khata property Bangalore is not easy. The lawyer suggested that by meeting a few criteria, such as paying all property taxes up to date, having a DC converted property, and paying the BBMP's Betterment Charges, B Khata homes can be upgraded to A Khata properties.

The lawyers helped examine the title to see if it was clear and marketable. Also, they told me that I can purchase a flat if the builder has obtained an occupation certificate from the municipal corporation and the seller has paid all flat dues to date.

However, one of my friends told me that the Karnataka High Court has ruled that the B khata should not be issued.

The property lawyer also suggested that B Khata will let me buy or sell a property, but will run into issues when it comes to construction. It is preferable to purchase properties with A Khata, as B Khatha prohibits the acquisition of a building permit, a trading licence, a bank loan, or any other financial activity.

Hence, because of the complications, I am still thinking about whether to purchase it or not. However, I will take the final decision based on what my lawyer suggests.

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