Definition
Khata
A khata is a municipal record (used notably in Karnataka) that identifies a property and its owner for the purpose of assessing and paying property tax.
Holding a valid khata in your name establishes that the property is recorded with the local body and that property taxes are being paid, and it is often required for obtaining building approvals, trade licences, water and electricity connections, and home loans. An 'A khata' generally denotes a fully legal, regularised property, while a 'B khata' indicates properties recorded for tax purposes but with certain regulatory shortfalls.
Buyers, especially in Bengaluru, should check the khata status as part of due diligence, since a B khata can complicate loans, approvals and resale. The khata is a record for taxation and identification and, like mutation, is distinct from the title deed that proves ownership.
Related terms
- Property RegistrationProperty registration is the legal recording of a property transaction with the government sub-registrar, making the transfer of ownership official and legally enforceable.
- Mutation of PropertyMutation is the process of updating the local municipal or revenue records to reflect a new owner after a property is bought, inherited or gifted.
- Title DeedA title deed is the legal document that establishes a person's ownership of a property and their right to use, sell or transfer it.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.