The khata classification on a Bangalore property decides whether you can get a home loan, build legally and resell without a discount. Here is what actually separates the two.
Almost every property conversation in Bangalore arrives at the same question within ten minutes: is it A-khata or B-khata? The answer changes what the property is worth, whether a bank will lend against it, and how easily you will be able to sell it later.
What a khata actually is
A khata is not a title document. It does not prove ownership. It is a municipal account record — the entry in the BBMP's books that says a particular property exists, who is liable for property tax on it, and what its dimensions and usage are. Ownership is proved by the sale deed and the title chain behind it; the khata simply records who pays the tax.
This distinction matters because sellers routinely present a khata certificate as though it settles the ownership question. It does not. You still need the title chain, the encumbrance certificate and the approved plan.
The A register and the B register
The BBMP maintains two registers. Properties that are fully compliant — built on approved layouts, with the correct approvals and betterment charges paid — are recorded in the A register and receive an A-khata. Properties that are revenue-converted, built on unapproved layouts, or otherwise short of full compliance are recorded separately in the B register and receive what is colloquially called a B-khata.
The B register was created as a tax-collection mechanism, not as a form of approval. It let the BBMP collect property tax from buildings it had not sanctioned. That origin is the whole story: a B-khata is an acknowledgement that you exist and owe tax, not a statement that your property is legal.
What changes in practice
Home loans
Most scheduled banks will not lend against B-khata property. A handful of NBFCs will, at higher interest rates and lower loan-to-value ratios. If you are relying on a loan for the majority of the purchase price, a B-khata property may simply be out of reach regardless of how attractive the asking price looks.
Building and renovation
You cannot obtain a building plan sanction on B-khata land. Any construction is therefore unauthorised, which compounds the problem for the next buyer and exposes you to demolition risk in the event of enforcement.
Resale
The buyer pool for B-khata property is restricted to cash buyers, which is a fraction of the market. Expect a meaningful discount to comparable A-khata property in the same locality, and expect the sale to take considerably longer.
Can a B-khata be converted?
Conversion is possible but not routine. It generally requires the land to have been converted from agricultural to non-agricultural use, the layout to be regularised, betterment charges to be paid, and the relevant approvals to be in place. The Akrama-Sakrama regularisation scheme has been the subject of prolonged litigation, and buyers should not price a property on the assumption that regularisation will arrive on a predictable timeline.
If a seller tells you conversion is "in process", ask to see the application acknowledgement and the specific deficiency being cured. Vague assurances on this point are the single most common way buyers get caught.
What we do about it
Every listing we publish carries its khata status, and our legal partner reviews the title chain and encumbrance certificate before the property goes live. Where a property is B-khata, we say so on the listing and price it accordingly — and if a client is set on it anyway, we make sure they understand exactly which of the consequences above they are accepting.
The short version: A-khata is not a nice-to-have. For most buyers relying on financing, it is the difference between a property they can buy and one they cannot.
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