• Buying property in Bangalore

Hi,

I'm trying to buy a property in Bangalore. Which is under construction, the builder will give a possession within next 3 months time. But it is not clear whether I'm going to get Occupancy Certificate or not. As I'm unsure about the deviations of the construction from actual plan. 
Is it ok, to buy such property?
Will I get A Katha? 
If not If get B Khatha will it be ok i.e. Can I sell it in the future(if necessary) and will I get loan in the future for this property?
Is there any chance that the building gets demolished for violations in construction?
What is the problem with the B Khatha property?

Note: 1. Land is DC converted
          2. Land is A Khatha registered

Thanks in advance,
Madhu
Asked 2 years ago in Property Law from Bangalore, Karnataka
1) before purchase of any property contact a local lawyer . 

2) obtain title clearance certificate that title is clear and marketable and free from encumbrances 

3) check whether building plans have been sanctioned by muncipal corporation 

4) ask for inspection of building commencement certificate . 

5) once builder has completed construction as per sanctioned plans builder will get occupation certificate from muncipal corporation . 

6) if builder from whom you are purchasing property is not a reputed builder from Bangalore dont invest your hard earned money unless builder has obtained OC 

7) to be on safer side please check whether project is pre approved by bank . obtain loan for purchase of flat .
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
5.0 on 5.0
“B” KHATA : Refers to the following types of Land/building: a) Where the Layout plan is not approved by Town Planning Authority but approval is obtained from Gramathana/Panchayat. And / or b) Where the Conversion order has not been obtained from the Deputy Commissioner and c) The Land/site is not situated in the Residential Zone of the Development Plan. The Municipal Tax in respect such property is collected by BBMP and recorded in “B” Register maintained in the concerned Municipal Ward and the “Khata” or account in respect of the Land/building is referred to as “B” Khata. APPROVAL OF LAYOUT PLAN: Under the provisions of section 14-B of the Karnataka Town & Country Planning Act, 1961, the development rights of the area/land [ in which the site of the employee is situated] should be authorised for purpose of residential use by the jurisdictional Town Planning Authority. To ensure this, the Plan of the Layout formed by private developers should be approved by the Jurisdictional Town Planning authority. Gramathana / Panchayat is not a Town Planning Authority. Layout plan approved by Gramathana is therefore unauthorised. Under the provisions of section 47 (1) (a) of the Karnataka Town & Country Planning Act, 1961, the concerned Planning Authority is vested with powers to remove, pull down or alter any building in its area of jurisdiction for not complying with the above provisions of law. CONVERSION ORDER & UNAUTHORISED LAYOUT Under the provisions of section 95 of the Karnataka Land Revenue Act, 1964, an order of the jurisdictional Deputy Commissioner for converting Agricultural Land for the use of non agricultural [Residential] purpose is required go be obtained. In absence of such a conversion order, the Land used for construction of house would be unauthorized. However, if the Layout is within the jurisdiction of BBMP, then in absence of conversion order, it should be ensured that the Land is within the area earmarked as Residential Zone of the Development Plan [Master Plan of BBMP]. If the Layout is situated in Green Belt or any Zoning Area not earmarked as Residential Zone, then such a Layout is unauthorized.
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
5.0 on 5.0
1) The word ‘Khata’ sim­ply means an account and B-Khata indi­cates that a par­tic­u­lar per­son has paid the prop­erty tax for a rev­enue land but it does not enti­tle the per­son to the absolute owner of the land. He can­not sell his prop­erty pos­ing as the prop­erty owner with­out under­go­ing the proper reg­is­tra­tion and doc­u­men­ta­tion pro­ce­dures. 

 2) there is no men­tion of the word B-Khata in the KMC Act of 1976 and it is a mis­nomer for the B-Register which the BBMP main­tains sep­a­rately to record the details of prop­erty tax col­lected from unau­tho­rized com­mer­cial or res­i­den­tial plots and these rev­enue lands are con­verted by the Deputy Com­mis­sioner for pro­vid­ing civic facil­i­ties and entered them into this B-register.
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
5.0 on 5.0
First let us look at what is meant by “Khata” according to BBMP (Bruhat Bangalore Mahanagara Palike). Khata is an account of assessment of a property, recording details about your property such as size, location, built up area and so on  for the purpose of payment of property tax. It is also a kind of identification of the person who is primarily liable for payment of tax.  It is required when you require a building license, trade licence or loan from banks or any other financial transactions. It is mandatory for all property owners to pay property tax, hence you need to have khata.

Now difference between Khata and Title Deed is, khata is an account of assessment of a property for payment of tax only. Hence khata will not confer ownership of property. Whereas Title Deed is the valid document which confer ownership on property.

Let us look at the reasons behind the origin of A Khata and B Khata lands. In 2007, those under the seven City Municipal Councils (CMC)?of Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar, Mahadevapura, Byatarayanapura, Yelahanka, one Town Municipal Council (TMC) of Kengeri and 110 villages, were brought under the fold of the Bangalore Mahanagara Palike (BMP). Following this expansion and creation of the Bruhat Bangalore Mahanagara Palike (BBMP), those who did not have appropriate approval from the concerned land development authority and yet to come under the ambit of the Palike were issued an acknowledgment which was in common parlance known as ‘B’ Khata.

However, in reality, ‘B’ Khatha does not exist. Property identification numbers are entered into a register called as  ‘B’ register stating that the civic agency has been paid its dues by the property owners. For citizens in need of an approval from the appropriate land development authority but have a Deputy Commissioner (DC)?conversion, the BBMP re-introduced Betterment Charges which will entail people to take a Khata on their property. This is how B Khata originated in the mind of property owners but not legally :)

Now the disadvantages of having B khata is that, you will not get building license, trade licence or loan from banks or any other financial transactions. Hence it is big hurdle to have B Khata land. Now what are the ways of converting B Khata land to A khata?

By paying betterment charges you can convert B Khata to A Khata. But you will face lot of hurdles, few of them are as below.

1) You should have DC converted property

2) Tax must be paid till date

3) Betterment charges for the conversion property need to paid to BBMP.

So the solution is to avoid purchasing B Khata properties and prefer A Khata to have comfortable position in dealing future financial transaction hurdles.


A. it is not safe to buy this property as builder cannot give OC to you.

B. better avoid buying this property.

C. mostly such building are demolished.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0
1)Purchasing property without OC is something like jumping into well despite knowing its consequences in case well is not having enough of water.
2)No.
3) 'B' Khata is not equivalent to 'A' Khata. So,'B' Khata has its demerits such as resale value will be always on lower side in case of a B'' Khata property and some banks won't accept 'B' Khata properties for loan purposes.
4)Yes.In case deviation exceeds beyond the permissible limits.
Thanking you,
Subash M R
Advocate, Bangalore
176 Answers
8 Consultations
3.6 on 5.0
Khata means an account , it is an important document it shows owner, size, and location of the property. only "A" khata property is elligible for bank loan, but land owner can convert his B khata into A khata by paying betterment charges along with appropriate documents. Without conversion into A khata you should not prefer to purchase it. 

Permission for the change of land use or diversion may be deferred or refused by the Deputy Commissioner under various conditions. DC converted means that land use of the property is converted into non-agriculture(Residential/Public Use/ Semi Public Use / Industrial /Commercial) use. The DC Conversion may also be withdrawn or canceled. 

DC converted property is fit for loan and residence because residential construction can be done on DC converted land.
Shivendra Pratap Singh
Advocate, Lucknow
2735 Answers
41 Consultations
4.9 on 5.0
1. Make a title  search of the property from registry office,

2. Make a Court search to find out if there is any court case pending in connection with title of the property,,

3. Collect sanctioned plan from the developer and find out if any deviation has been made from the sanctioned plan,

4. If you get any adverse report, buying the flat will be risky.
Krishna Kishore Ganguly
Advocate, Kolkata
12084 Answers
228 Consultations
5.0 on 5.0
A. You have to scrutinize the Building Approved plans and Commencement Certificate which is sanctioned by the BBMP regarding whether the builder has constructed an apartment as per the approved plan.

B. Once the construction is completed, then the builder has to intimate to BBMP engineer to verify the construction whether the building constructed as per the BBMP bye laws and approved plan. In case the builder violated the said bye laws more than 5% it may allowed by imposing penalties. Hence, up to 5% deviation is permissible.

C.  If the building or apartment is competent to occupy the premises that you will have the occupancy certificate and it will get “A” Khatha and marketable title automatically. In the meanwhile, if the building don't fit to occupy then it will be enter or register in ‘B’ Book which is well known “B” Khatha in Bangalore.

D. By dint of the above said reasons; you will not get a valid marketable title in the absence of Occupancy Certificate for future selling purpose. And this type of building may be demolished subject to a court order and discretionary power of the BBMP subject to nature of ratio violations.
B.T. Ravi
Advocate, Bangalore
736 Answers
29 Consultations
5.0 on 5.0
At the time of buying a property, exercise of legal due diligence is essential to avoid getting entangled in legal issues later. Mentioned below are some of the precautions which you must take before signing on the dotted line. 


1. The title of the property forms the foundation of proprietary rights. According to the Indian Contract Act, no seller can pass on to the purchaser a better title than what he already possesses. Therefore, the title of the seller must be clear and free from any encumbrance. Before you buy a property, verify the title of the seller and also the antecedent chain of ownership. A search of the records at the sub-registrar’s office may be carried out for documents that may affect the property and may have been registered .The report will show the recorded owner of title of the property and changes in the title of the property. If the land is an agriculture land than Jamabandi and Mutation records (Khata) of that land should be inspected.

Khata is basically a supporting document of title. It is the entry of the present owner in the municipal records. The absence of khata in the name of a current owner can be rectified at any time by applying for khata transfer. Khata has become important because it is required for loans, title opinions, electricity meter name change, registration, etc. Khata is changed after a sale deed is executed or after a property is inherited through a will, gift, partition, etc. 'A' khatha is issued if the building is constructed in accordance with the plans. 'B' khatha is not as good as 'A' khatha as not only does it fetch a lower value on resale, the banks also hesitate in accepting 'B' khatha property for the loan facility. So buying  property with 'B' khatha should be avoided. 

2. If the sale documents are being executed by a person holding power of attorney on behalf of the owner, the said power of attorney should be scrutinized closely. The person must not only possess the legal power to sell property, the power of attorney should also be validly executed before the appropriate authority. An agreement holder (as explained above) who also has a power of attorney to sell the land and/or building is normally a developer. Alternatively, a person may have paid the entire consideration to the owner and holds on to the property for some time to sell it at a later date for a profit. The sale will be effected by the power of attorney holder on behalf of the owner. Such power of attorney must be properly stamped and registered. 

3. Always inspect the original documents of the seller and read all the documents carefully before signing them.

4. If the building is under construction, then inspect the plans threadbare to check whether they have been sanctioned by the concerned authority.

5. Always verify documents of title to check payment of stamp duty. If the ownership of property has changed hands more than once, examine all the documents for payment of stamp duty by the predecessors.

6. If the property is owned by a minor, prior approval of the court is required to enable the minor’s father/natural guardian to sell the property. In the absence of such permission, the sale could be voidable at the option of the minor on attaining majority.

7. If the flat that is being purchased is in a building built on a land which is given on lease, lease rent would have to be paid for the land by the flat owners. If the lease is to expire shortly, it is possible that the lease rent may increase substantially. Hence, the terms of the lease must be verified before buying the flat.

8. Occupation certificate should be inspected to ensure that the building has been built legally, especially in case of new buildings.

9. You can verify the carpet area by taking actual measurement of the property if the same is ready.

10. It is advisable to obtain a no dues certificate and no encumbrance certificate from the society (if the property is in the society) to ensure that all dues are paid and no mortgage is registered with the society in respect of the property being purchased. 

Since you are unsure of deviations, if any, it is not advisable to purchase this property unless the legal due diligence as mentioned above is carried out.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
before going for purchase ensure approval by mc'bank and check for no encumbrances on the property.
Brijendra Kumar Vishwakarma
Advocate, Kanpur
117 Answers
0 Consultations
3.3 on 5.0

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