In a major step towards simplifying property transactions, banks can now directly apply for e-Khata to facilitate the sale of mortgaged properties. The e-Khata system, maintained by local authorities, is an electronic property record designed to ensure accurate documentation and promote transparency in property dealings.
It is a legal document that contains information on the property, such as the owner’s name, the property’s dimensions, its location, etc., according to real estate terminology.
The Khata is a crucial document needed when purchasing or disposing of any kind of property. The two main categories of khatas—A khata and B khata—as well as the acquisition process, have already been covered.
Streamlined Process for Property Sales
Previously, the lack of a streamlined system caused delays and complications in selling properties under mortgage. With the new facility, banks can directly access property records, speeding up the sale process. This change is expected to provide significant relief to both borrowers and financial institutions.
Benefits for Borrowers and Banks
The introduction of e-Khata access is likely to reduce disputes over property ownership and simplify the legal framework for selling mortgaged assets. Borrowers can benefit from faster resolution of their outstanding loans, while banks can efficiently manage the sale of such properties.
Boost to Digital Transformation
This initiative aligns with the government’s ongoing efforts to digitize property management and banking operations. Experts believe the move will improve the ease of doing business in the real estate sector, making property transactions more transparent and efficient.
A Step Towards Transparency
The adoption of e-Khata is a significant advancement in leveraging technology to address challenges in property transactions. By ensuring accurate records and a hassle-free process, the system aims to create a better experience for all stakeholders involved.
