Q&A For Real Estate

Decoding Bangalore Real Estate: A Q&A Guide to Property Terms & Documents

Entering the Bangalore real estate market can feel like learning a new language. Words like 'Khata', 'EC', and 'DC Conversion' are thrown around, leaving many potential buyers feeling confused and overwhelmed. A clear understanding of these terms isn't just helpful—it's essential for a safe and secure investment.

At Shetkar Builders LLP, we believe in empowering our clients with knowledge. This Q&A guide is designed to demystify the jargon and answer the critical questions you have about real estate paperwork in Bangalore.

Section 1: The "Khata" Conundrum – The Most Common Question

Q1: What on earth is a 'Khata'? And what's the critical difference between an 'A-Khata' and a 'B-Khata'?

A: This is the most important term to understand in Bangalore! A Khata is essentially an account of your property maintained by the municipal corporation (BBMP). It identifies the property owner, and its primary purpose is for property tax payment.

• A-Khata: This is the "gold standard." An A-Khata property is one that has all its approvals in place and has been developed in compliance with all building bye-laws.

  • Why it's good: You can legally construct on it, get trade licenses, apply for bank loans, and easily transfer ownership. It is a fully legal and legitimate property.

• B-Khata: This is a temporary register maintained by the BBMP for properties with irregularities or deviations from building codes (e.g., properties in unauthorized layouts, or those with unpaid betterment charges). While you are required to pay taxes on a B-Khata property, it comes with significant limitations.

  • Why it's risky: You cannot get a building plan sanction for new construction, it's very difficult to get bank loans, and selling it can be a major challenge.

The Bottom Line: Always insist on an A-Khata property for a secure investment.

Section 2: Proof of Ownership – The Core Documents

Q2: I hear "Sale Deed" and "Title Deed." Aren't they the same thing?

A: They are related but distinct.

• The Sale Deed is the primary legal document that acts as proof of the transfer of ownership from the seller to the buyer. It is executed at the time of the sale and must be registered at the sub-registrar's office.

• The Title Deed is not a single document but a concept. It refers to the chain of documents that collectively prove a person's ownership rights over a property. A clear title means there is an unbroken, legally sound chain of ownership. The Sale Deed is the most recent and crucial part of this chain for you as a buyer.

Q3: What is an Encumbrance Certificate (EC) and why do I need it?

A: Think of an EC as a "background check" for the property. This certificate, issued by the sub-registrar's office, confirms that the property is free from any legal or monetary liabilities (encumbrances), such as an outstanding loan or mortgage. A "Nil Encumbrance" certificate for the period you are checking is what you want to see. It's crucial for ensuring the seller has a clear right to sell the property.

Q4: My lawyer mentioned a 'Mother Deed'. What is that?

A: The Mother Deed is the parent document that traces the origin of the property and its ownership from the very beginning. It's especially important for plots in layouts. It establishes the chain of ownership, and every subsequent buyer should be able to trace their ownership back to this original document. A clear and traceable Mother Deed is vital for establishing a clear title.

Section 3: Land & Legality – Is Your Plot Legal?

Q5: What does 'DC Converted' land mean?

A: "DC" stands for Deputy Commissioner. In Karnataka, agricultural land cannot be used for residential or commercial purposes. DC Conversion is the legal process of converting the land's purpose from "agricultural" to "non-agricultural." If you are buying a plot, you must ensure it is DC Converted. Building a house on non-converted agricultural land is illegal.

Q6: What is the difference between BBMP, BDA, and BMRDA?

A: These are the key planning and administrative authorities in and around Bangalore.

• BDA (Bangalore Development Authority): A government body responsible for planning and developing layouts in the Bangalore metropolitan area. Buying a plot in a BDA-approved layout is generally considered very safe.

• BBMP (Bruhat Bengaluru Mahanagara Palike): The city's municipal corporation. It governs the areas within the city limits, collects property tax, and provides building plan sanctions.

• BMRDA (Bangalore Metropolitan Region Development Authority): This authority governs the areas just outside the BBMP jurisdiction but within the larger metropolitan region. It approves layouts in these developing areas.

Knowing which authority your property falls under is key to understanding the rules that apply to it.

Section 4: The Building Itself – Approval & Area

Q7: Why are the Occupancy Certificate (OC) and Completion Certificate (CC) so important when buying an apartment or a new house?

A: These two certificates are your proof that the building is legal and safe.

• Completion Certificate (CC): Issued by the BBMP, this certifies that the building has been constructed according to the approved building plan.

• Occupancy Certificate (OC): This is the final and most critical document. The OC is issued only after the building is inspected and found to be fully compliant and fit for habitation.

Without an OC:

• You cannot get a permanent water (BWSSB) or power (BESCOM) connection.

• The building is technically an illegal structure.

• Getting a bank loan or reselling the property is extremely difficult.

• At Shetkar Builders LLP, we ensure all necessary OC and CC paperwork is flawlessly handled for every project we deliver.

Q8: How do I understand Super Built-up Area, Built-up Area, and Carpet Area?

A: This is a common point of confusion that directly impacts what you pay for.

• Carpet Area: This is the actual usable area inside your house where you can lay a carpet. It does not include the thickness of the walls.

• Built-up Area: This is the Carpet Area plus the area covered by the inner and outer walls of your unit.

• Super Built-up Area (or Saleable Area): This is the Built-up Area plus a proportionate share of all common areas like lobbies, staircases, elevators, and amenities like a gym or clubhouse. Developers almost always base the property price on the Super Built-up Area.

Q9: What is RERA and how does it protect me?

A: RERA (Real Estate Regulatory Authority) is a central government act that aims to protect homebuyers and boost transparency in the real estate sector. Every builder must register their project with the state's RERA authority.

• Key Protections for You:

  • Standardized Carpet Area: Builders must sell based on Carpet Area, not ambiguous Super Built-up Area.

  • Timely Delivery: Stiff penalties are imposed on builders for project delays.

  • Financial Discipline: 70% of the money collected from buyers must be kept in a separate escrow account for that project's construction.

Feeling Overwhelmed? You Don't Have to Be.

Navigating the web of real estate documents in Bangalore can be daunting, but it's a non-negotiable part of securing your investment. Due diligence is your best friend.

At Shetkar Builders LLP, we pride ourselves on transparency and guiding our clients through every step of this process. Whether you're building a new home with us or just have questions, we're here to help bring clarity to your real estate journey.

Ready to discuss your project or have more questions about property documents?

Call the experts at Shetkar Builders LLP today: 8105516262