DC Conversion: What It Means and Why It’s Crucial When Buying a Plot

Buying a DC-converted property in Bangalore can be a safe investment, but it requires thorough due diligence to ensure all legal and regulatory requirements are met. Here’s a comprehensive guide to help you navigate the process:

What Is DC Conversion?

In Karnataka, all land is initially designated for agricultural use. To repurpose agricultural land for non-agricultural purposes (such as residential or commercial development), the land must undergo a formal conversion process approved by the Deputy Commissioner (DC). This process is governed by Section 95 of the Karnataka Land Revenue Act.

Khata Categories Explained

• A Khata: Represents fully legalised properties that have met all municipal regulations, including layout approvals and tax payments. These properties are eligible for loans, construction permits, and other municipal services.
• B Khata: Indicates properties that may have undergone DC conversion but lack full compliance with municipal norms. These properties often do not receive construction approvals or municipal services and may not be eligible for loans.
• E Khata: A digital record of property details, primarily for properties under panchayat jurisdiction. While it serves as a digital equivalent of A Khata, it may not carry the same legal weight in urban areas governed by BBMP or BDA.

Is It Safe to Buy a DC Converted Property?

Yes, but only if the property meets the following criteria:

1. Legal DC Conversion: Ensure the land has been officially converted from agricultural to non-agricultural use by the Deputy Commissioner.
2. A Khata Status: Verify that the property holds an A Khata certificate, indicating full compliance with municipal regulations.
3. Layout Approval: Confirm that the layout has been approved by the relevant authority, such as BBMP, BDA, or BMRDA.
4. Encumbrance Certificate: Obtain a 30-year encumbrance certificate to ensure the property is free from legal liabilities.
5. Clear Title Deed: Ensure the seller has a clear and marketable title to the property.
6. Tax Receipts: Verify that all property taxes have been paid up to date.

According to NoBroker, while DC-converted properties can be safe investments, they often fall under the B Khata category, which may not be approved by BBMP for construction. Therefore, it’s advised to exercise caution and conduct thorough due diligence before purchasing such properties.

Risks of Buying B Khata Properties

• Construction Limitations: BBMP typically does not approve construction plans for B Khata properties.
• Loan Ineligibility: Nationalised banks often do not provide loans for B Khata properties.
• Legal Uncertainty: B Khata properties may face challenges in obtaining legal recognition and municipal services.

It’s crucial to note that nearly 90% of non-agricultural farmlands in Karnataka lack the necessary legal approvals, leading to unauthorized constructions and potential legal issues.

How to Verify DC Conversion

To verify the DC conversion status of a property:

1. Visit the Bhoomi Online Portal: Navigate to the Karnataka Land Records portal.
2. Select Your District and Taluk: Choose the appropriate district and taluk where the property is located.
3. Enter Survey Number: Input the survey number of the property.
4. Check Conversion Status: Review the details to confirm if the property has undergone DC conversion.

Additionally, you can check the status of your DC conversion application by visiting the Bhoomi Conversion Request Status page and entering your affidavit number or user ID.

Essential Documents Checklist

Before purchasing a DC-converted property, ensure you have the following documents:

• DC Conversion Certificate: Proof of official conversion from agricultural to non-agricultural use.
• A Khata Certificate: Indicates compliance with municipal regulations.
• Approved Layout Plan: Approval from relevant authorities like BBMP, BDA, or BMRDA.
• Encumbrance Certificate: A 30-year record showing the property’s legal history.
• Title Deed: Document proving ownership of the property.
• Tax Paid Receipts: Evidence of up-to-date property tax payments.
• Sale Deed: The registered document transferring ownership
• Mother Deed: Original document establishing the property’s title lineage.

Consulting with a legal expert can help ensure all documents are in order and the property is free from legal disputes.

Final Thoughts

Purchasing a DC-converted property in Bangalore can be a sound investment if all legal and regulatory requirements are met. It’s imperative to conduct thorough due diligence, verify all documents, and consult with legal professionals to mitigate risks associated with B Khata properties and unauthorized conversions.