Failure To Transfer Khata After Property Possession Breaches RERA: Karnataka RERA

The Karnataka Real Estate Regulatory Authority (K-RERA) has recently directed a Bengaluru-based real estate developer to transfer Khata in the names of homebuyers within 30 days, holding that a prolonged delay after execution of the sale deed and delivery of possession violated the Real Estate (Regulation and Development) Act, 2016. A Khata is an official property record maintained by Bengaluru's civic body. It establishes ownership and is required for paying property tax, obtaining home loans, and carrying out property transactions. Without a Khata, legal ownership remains incomplete. A coram comprising Chairman Rakesh Singh, emphasized that a promoter's responsibility does not conclude with the mere signing of a deed. The bench observed that Section 17(1) of the RERA Act requires a promoter to take all necessary steps to ensure that full legal ownership is transferred to the homebuyer. The Authority noted that the transfer of title is complete only when a registered conveyance is coupled with transfer of Khata in the homebuyer's name and further held that this obligation is statutory and cannot be avoided. Somashekar HG and Prakruti M filed a complaint after buying a plot in the “Aquatownn” project in Doddangamangala Village. Though the sale deed was executed and possession handed over on January 3, 2025, the homebuyers waited over 110 days for the Khata. They stated that this delay caused real financial hardship, forcing them to keep paying rent and home loan EMIs without the official property records needed to secure their legal position. During the hearing, the developer Kavitha Ramreddy argued that Khata transfer was not mentioned in the sale deed and thus not a contractual duty. The Authority rejected this, pointing to an Indemnity Bond signed on January 6, 2025. That document plainly stated the E-Khata would be mutated in the buyers' names after registration. This, the Authority said, left no doubt about the developer's obligation to make it happen. Reiterating the objective of the legislation, the Authority stated that the "purport and object of the RERA Act is to safeguard the interest of purchasers." The bench observed that delays in record mutation have real financial consequences for the buyers by impacting their ability to manage loans and other financial obligations. The Authority allowed the complaint and cautioned that if the developer failed to help with the Khata transfer within 30 days, it would face liability for compensation.Case Title: Somashekar H.G. & Anr. v. Kavitha Ramreddy Complaint Number: CC/00632/2025For Complainants: Advocates Lochana S Babu and Ajay N.Click Here To Read/Download Order

Failure To Transfer Khata After Property Possession Breaches RERA: Karnataka RERA

Shivani PS

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