A Khata is not a title document. It does not prove you own anything. It is the municipal record that says a property exists on the tax roll and who is liable to pay. People treat it as proof of ownership constantly, and it is not.
What it does decide is almost everything practical.
A-Khata means the property is on the main municipal register. Approvals are in order, the building conforms to the sanctioned plan, and taxes are being collected normally. Banks lend against it. You can get building plan approval. You can transfer it cleanly.
B-Khata means the property is on a separate register, usually because of a deviation from the approved plan, unapproved layout, or construction on converted land without full compliance. It is not illegal to own. It is significantly harder to finance, harder to sell, and harder to get approvals against.
The practical consequences of B-Khata:
- Most major banks will not sanction a home loan
- Building plan approval is generally unavailable
- Your buyer pool shrinks, which shows up in the price
- Conversion to A-Khata is possible in some cases but is neither quick nor guaranteed
B-Khata property is often priced attractively, and that discount is not generosity. It is the market pricing in the difficulty.
If you are buying, ask which one it is before anything else, and see the document yourself rather than accepting an assurance. If someone tells you conversion is “a formality”, ask them to put the timeline in writing.