Wednesday, 14 May 2014

NEED FOR KHATHA TRANSFER OF PROPERTY

(Advocates, Property advocates in Bangalore, Property lawyers in Bangalore)

Immovable property can be transferred by way of Sale, Will, Gift, Release, Settlement, Partition Deed, and Exchange or otherwise. After such a transfer, it is necessary to make entries in the revenue records on production of the relevant documents to the concerned Revenue Authority.

Immediately upon registration of the conveyance document with the concerned Sub-Registrar, you will not get absolute ownership details in their records in respect of the property.Upon verification of the documents made available to them for transfer of Khatha in your name along with the prescribed fees, the concerned Revenue Authorities will make necessary entries in their records indicating the ownership of the properties in your name.Copies of these documents are supplied to you upon payments of prescribed charges. You will also have to pay property tax to the concerned Authority regularly.

Types of Khatha
These documents are called in different names at different places such as; Khatha Certificate, Khatha Extract, Khatha Endorsement, Phani, Chitti or Adangal. It may be noted that the Title Deed is the document through which a person derives a title or ownership of the property and Khatha Certificate and Khatha Extract only authenticate such ownership.They are supporting documents to the Title deed.

The records maintained by the Revenue Authority shall contain details of property such as size of the plot, location, built up area and so on with a view to arrive at the exact quantum of property tax payable by you as per norms prescribed. These documents are also used for identification of the person, who is primarily liable for payment of property tax. Property tax is a charge arrived at upon consideration of the size and usage of the property and all the property Owners are duty bound to pay Property Tax regularly.

The Khatha Certificate is one of the essential documents required to be produced for obtaining building license, trade license or for obtaining loans from Banks and other Financial Institutions. Even if you want to sell your property, you will have to produce compulsorily copies of the revenue records viz., Khatha Certificate, Khatha Extract and the latest tax paid receipt at the time of Registration of Sale Deed in the Jurisdictional Sub-Registrar’s Office, Khatha Extract would give an account of assessment of a property for payment of property tax.

Applying for Khatha
Only property Owners can apply for Khatha Certificate upon payment of up-to-date property tax and the prescribed fee. However, the Khatha Extract can be applied by anybody, upon payment of requisite fees per property for one extract. The Khatha Certificate and extract can be applied at the Office of the Jurisdictional Asst. Revenue Offices or at any computerised counter established by the Bangalore Mahanagara Palike.

Holder Khatha
Whenever, the title documents are not furnished to the concerned Revenue Authority and the property with super structure is in possession of an Occupant, the property will be assessed to property tax registering khatedhar as ‘Holder’ to protect the interests of the Corporation Revenue. This Holder Khatha will be regularised on the production of Title Deeds and on payment of improvement charges. General Power of Attorney (GPA) Holders of a property with super structure thereon can also apply for Khatha in their name, where the Khatha will be registered as ‘Holder’ and taxes will be collected from such GPA Holders.

New Khatha Registration
Applications for Khatha Registration may be filed in Asst. Revenue Office along with documents mentioned in the Sarala Khatha Scheme Book. Documents inter alia include Sale Deed, Mother Deed, Encumbrance Certificate,National Savings Certificate and sketch showing the site details, along with the mandatory fees of two percent of Stamp Duty paid on the Conveyance Deed and betterment charges, wherever applicable.

Bifurcation and Clubbing of Khatha
When a property is divided into two or more parts, there is bifurcation and when there is merger of one or more properties together there is clubbing. A modified Khatha has to be obtained in both the cases.

Transfer of Khatha
Khatha can be got transferred from the Vendor’s name to the Purchaser’s name upon the Registration of Conveyance Deed by following the prescribed procedure. Applications for Khatha Transfer may be filed in Asst. Revenue Officer’s Office along with the documents mentioned in the Sarala Khatha Scheme Book. The Sarala Khatha Scheme Book gives all the details about the services of the Revenue Department, documents to be filed, fees to be paid, schedule of time for the services and also the rates for assessment of property tax under the self-assessment scheme. Documents to be enclosed to the application are the same as for new Khatha Registration along with up-to-date tax paid receipts. Purchaser of such property is liable to pay 2 percent of Stamp Duty as Khatha Transfer Fees.

Payment of Property Tax
Property tax can be paid in two annual installments. The property for the first half year will have to be paid within 60 days from the date of commencement of the assessment year. The second installment has to be paid within 60 days from the date of commencement of the second half of the assessment year. Payment of property tax beyond 60 days as mentioned above will attract penal interest.

R.T.C.
RTC means “Records of Right, Tenancy & Crops for inspection”. RTC relates to Khatha of agricultural properties and it is otherwise called as “Pahani”. It is a very important document for agricultural land. RTC is issued by the Village Accountant under Rules 40, 42, 58 & 70 of Karnataka Land Revenue Rules, 1966. RTC is a very important document to trace title of agricultural property. It contains the following details:
1.Survey Number,
2.Hissa Number/Sub Number,
3.Total extent of Land & Kharab Land,
4.Revenue Details,
5.Kind of Soil,
6.Patta,
7.No: of Trees,
8.Total extension cultivated through irrigation,
9.Owner of possession in the land (column),
10.Kind of possession,
11.Other Rights & Miscellaneous,
12.Cultivation & tenancy details &
13.Use of land & kinds of crops.

RTC column serial Nos. 12 & 13 contain total 16 sub columns. It shows cultivator of the land, year and tenancy details, kind of crops, details of water of growth of crops, details of water resources, average production of crops/acre and other details.

Mutation Extract
Mutation is understood in the Revenue Department as a Transfer of Right. Mutation is made by the Village Accountant in the Register of Mutation. Mutation is issued in Form No: 11 under Rule 46 of Karnataka Land Revenue Rules, 1966. It contains 7 columns as detailed below:
1.Sl. No. shows mutation no: and year,
2.No. of reference to preliminary record or Taluk Office or Sub-Registrar or other Office,
3.Nature of Rights,
4.Survey no: and sub-division of details,
5.Order details to the enquiry Officers,
6.Date of entry in the Preliminary Record or Record of Right &
7.Date of issue of notice to the concerned parties.

Village Panchayath Khatha Form No: 9
The Gram Panchayath will issue Khatha in Form No: 9 under Rule 35 of Karnataka Panchayath Raj Rule, 1995. It contains the following details:
1.Property no and details,
2.Owner of the land and
3.Total extent of the property with boundaries and annual tax.

Form No: 10
It is a demand register of assessment of the annual year. The Gram Panchayath will issue Form No. 10 under Rule 35 of Karnataka Panchayath Raj Rule, 1995. It contains the following details:
1.Property no:
3.The details of the tax (i.e., sanitary, education, health, library, property tax, electricity tax and water tax).
4.Instead of Form 9 & Form 10, Form 1 & Form No: 12 are now issued which contain similar details in respect of properties situated in the Village Panchayath area.
5.It is advisable that for peaceful possession and enjoyment of your property with an absolute, clear and marketable title, you have to get the Khatha transferred in your name immediately upon purchase.

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