Khata is not a title document. It is the municipal record that says a property exists on the tax roll and identifies who is liable for the tax. That is the first thing most explanations get wrong, and it matters, because people treat an A-Khata as proof of ownership and a B-Khata as a lesser form of ownership. Neither is true — ownership comes from the deeds, the Encumbrance Certificate and the revenue records.
What Khata actually determines is whether the municipality treats the property as compliant. A-Khata means compliant. B-Khata means the Urban Local Body has recorded the property for tax purposes while flagging it as irregular — usually unauthorised construction, an unapproved layout, or a sub-division that never received sanction. That flag is what a bank reads, and it is why the same square footage sells at a discount two streets apart.
What actually makes a property B-Khata
B-Khata is not one condition. It is a bucket for several distinct defects, and they are not equally fixable — which is why "it is B-Khata" is not enough information to make a decision.
- Unapproved layout. The land was sub-divided into sites without layout sanction from the planning authority. Common on converted agricultural land at the city edge.
- Revenue site on unconverted land. The plot was carved out of agricultural land that was never converted for non-agricultural use. This is the most serious variant, because the defect is at the land level, not the building level.
- Unauthorised construction. The building exceeds the sanctioned plan — extra floors, built-up area beyond permission, setback violations.
- Deviation from approved plan. A sanctioned plan existed but what was built departs from it materially.
- Missing conversion or plan documentation. The paperwork existed at some point and cannot now be produced.
Ask which of these applies before anything else. An unauthorised third floor on an otherwise compliant building is a different problem from a revenue site sitting on unconverted agricultural land. The second one may have no path to A-Khata at all.
What each one lets you do
| Can you... | A-Khata | B-Khata |
|---|---|---|
| Get a home loan from a mainstream bank | Yes | Generally no |
| Get a loan from an NBFC | Yes | Sometimes, at a higher rate |
| Obtain building plan approval | Yes | No |
| Get a trade licence for commercial use | Yes | Usually obstructed |
| Register a sale | Yes | Possible, but the buyer inherits the flag |
| Sell at full market rate | Yes | No — the discount persists |
| Pay property tax | Yes | Yes |
Read the last two rows together. A B-Khata property will happily take your property tax and will happily be registered in your name. Neither of those facts is the municipality endorsing the property. Sellers present tax receipts and a registered deed as if they answer the Khata question. They do not touch it.
The financing constraint is the one that decides resale value. If mainstream banks will not lend against it, your future buyer pool is limited to cash buyers and NBFC borrowers — which is precisely why you were offered the discount.
How to check which one you are buying
- 1Look the property up on E-Aasthi for the relevant Urban Local Body. The register entry shows the owner, ward, extent, usage classification and tax position, and it is the authoritative source — not the seller's photocopy.
- 2Ask for the Khata certificate and the Khata extract, and check whether the property sits on the A register or the B register. A seller who produces only a tax paid receipt is answering a different question.
- 3Trace the land back. For anything that was agricultural, obtain the DC conversion order and check the extent approved and the permitted purpose. A site on unconverted land cannot become A-Khata by paperwork alone.
- 4Get the layout approval from the planning authority for the layout the site sits in. No layout sanction means the sites in it are irregular regardless of what the individual seller has.
- 5Get the sanctioned building plan and compare it to what is physically standing. Count the floors. Measure the built-up area against the plan.
- 6Compare the built-up area recorded on E-Aasthi with reality. If the municipality records less than exists, the difference is unauthorised.
- 7Ask your bank for an in-principle view before you pay an advance. A lender's legal team will assess the same documents and their answer is free.
Regularisation: what it does and does not promise
Every B-Khata seller mentions regularisation. Karnataka has run and proposed several schemes over the years to bring irregular properties onto the A register, and the position has changed more than once — schemes have been announced, litigated, suspended and revised.
Treat any pending or anticipated scheme as exactly that: pending. It is not a plan, it is a hope, and it is being used to justify a price. The decision you are making is whether the property is worth buying in its current state, on the current rules.
- Verify the current position with the Urban Local Body for that specific property, not in general terms.
- A defect at the land level — a site on unconverted agricultural land — is structurally harder than a construction deviation, and may not be curable at all.
- Where a scheme exists, regularisation typically carries a charge. Find out the number before you price the property, not after.
- Get any assurance in writing from the ULB, not from the seller or the broker.
If the seller's case for the price rests on a regularisation that has not happened, you are being asked to buy the risk and pay for the upside. Price it as B-Khata or walk.
When B-Khata is a rational purchase
B-Khata is not automatically a bad buy. It is a discounted asset with specific constraints, and there are situations where the trade is sound. Being honest about which situation you are in is the whole exercise.
- You are paying cash, you do not need a loan now, and you are not relying on a loan for the exit.
- The defect is a construction deviation on land that is properly converted and inside a sanctioned layout — the narrowest and most curable version of the problem.
- You have priced the discount honestly against a realistic assessment of resale, not against A-Khata comparables.
- You have confirmed with the ULB what the property would need to be regularised, and the number is one you would pay.
It is a poor buy when you need bank finance, when you intend to build, when the land itself was never converted, or when the entire case for the price is a scheme that might arrive. Those four cover most of the B-Khata deals that go wrong.
Frequently asked questions
What is the difference between A-Khata and B-Khata?
A-Khata means the Urban Local Body treats the property as compliant — lawful construction, sanctioned layout, taxes in order. B-Khata means the property is on the tax roll but flagged as irregular, typically because of an unapproved layout, unconverted land, or construction beyond the sanctioned plan. Khata is a municipal record, not a title document, and neither form proves ownership.
Can I get a home loan on a B-Khata property?
Generally not from a mainstream bank. Some NBFCs will lend, usually at a higher rate and lower loan-to-value. This constraint also limits your future buyer pool, which is the main reason B-Khata property carries a persistent discount.
Can B-Khata be converted to A-Khata?
Sometimes, depending on why the property is B-Khata. A construction deviation on properly converted land inside a sanctioned layout is the most curable case. A site on land that was never converted for non-agricultural use is far harder and may have no route at all. Karnataka has run and proposed several regularisation schemes and the position has changed repeatedly, so verify the current rules with the ULB for that specific property.
Is it safe to buy a B-Khata property?
It can be rational if you are paying cash, do not intend to build, and have priced the discount against a realistic resale assessment. It is a poor decision if you need bank finance, plan to construct, or are relying on a regularisation scheme that has not happened.
Does paying property tax make a B-Khata property legal?
No. The municipality accepting tax says the property is on the tax roll, not that the construction or the layout is lawful. Tax receipts are frequently presented as evidence of legitimacy and they do not address the Khata question at all.
How do I check whether a property is A-Khata or B-Khata?
Look it up on E-Aasthi for the relevant Urban Local Body rather than relying on documents the seller provides, and ask specifically for the Khata certificate and extract. Then trace the land: the DC conversion order, the layout sanction, and the approved building plan compared against what is actually built.
Is Khata the same as ownership?
No. Khata is the municipal record identifying who is liable for property tax. Ownership is established by the registered deeds, the Encumbrance Certificate and the revenue records read together. A person can hold the Khata without holding good title, and that gap is where disputes start.
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This guide is general information about Karnataka land records, not legal advice. Records, fees and procedures change. Verify the current position for your specific property with the relevant department before acting on anything here.