Real Estate Glossary

A preliminary agreement that records the buyer's and seller's intention to transfer a property on agreed terms.

It helps document price, payment stages, timelines and other commitments before the final conveyance.

The Real Estate (Regulation and Development) Act, 2016 and the related state regulatory framework for registered real estate projects and agents.

RERA aims to improve transparency, accountability and disclosure in the real estate sector.

A registration identifier issued by the applicable state RERA authority to a registered real estate project.

It helps buyers locate the project's official regulatory disclosures and compare them with marketing information.

A state government levy generally payable on instruments that record a property transaction.

Stamp duty is a major transaction cost and varies by state, property type and applicable concessions.

Charges paid for registering a property document with the appropriate registration authority.

Registration creates an official public record of the document and is distinct from stamp duty.

A document that records registered transactions or charges affecting a property over a specified period, subject to local records and procedures.

It is commonly reviewed during title due diligence to understand whether registered claims or charges appear against the property.

A legal instrument used to transfer rights, title or interest in a property from one party to another.

It records the completed transfer and is an important document in the ownership chain.

The registered document through which ownership of a property is commonly transferred from seller to buyer after agreed conditions are fulfilled.

It is one of the principal title documents establishing the buyer's ownership after registration.

A document or acknowledgement relating to the handover of possession of a property by the developer or seller to the buyer.

It helps record when possession is offered or handed over and may be relevant to the handover process.

A certificate issued by the competent authority indicating that a completed building is fit for occupation in accordance with applicable approvals, subject to local law.

It is an important completion-stage document for buyers of completed properties.

A certificate relating to completion of construction in accordance with sanctioned plans and applicable requirements, subject to local rules.

It helps establish that the development has reached the approved completion stage.

A document forming part of the chain of ownership or title records for a property.

Title documents are reviewed to establish how ownership has passed from one holder to another.

The net usable floor area of an apartment excluding external walls, service shafts, exclusive balcony or verandah area and exclusive open terrace area, as defined under RERA.

It is a useful basis for comparing the usable internal space of different homes.

A commonly used market term that generally refers to carpet area plus the thickness of walls and certain attached areas; exact usage can vary.

It is typically larger than carpet area, so buyers should understand what has been included in the calculation.

A market term that usually adds a proportionate share of common areas to built-up area; calculation methods vary and the term is not a standard RERA sale basis.

It can be significantly larger than carpet area and may make cross-project comparisons confusing.

A planning ratio that relates the permissible built floor area on a plot to the plot area, with terminology and rules varying by jurisdiction.

It influences the development potential and built density of a site.

A market expression used to describe the difference between carpet area and a larger quoted saleable or super built-up area.

A higher loading factor generally means a larger gap between usable private area and the quoted overall area.

Areas intended for shared use in a building or development, such as lobbies, corridors, staircases and certain common amenities, subject to the project documents and law.

Common areas contribute to the overall residential experience but are not part of an individual home's exclusive carpet area.

A scaled drawing showing the arrangement of rooms, walls, doors, windows and circulation within a property.

It helps buyers evaluate usability, furniture placement, privacy, ventilation and movement.

A loan provided by a bank or housing finance institution to finance the purchase or construction of residential property, subject to eligibility and lender terms.

The interest rate, tenure, fees and repayment structure affect the long-term cost of the property.

The portion of the property cost paid by the buyer from personal funds rather than through the home loan.

A larger down payment reduces the loan amount but also uses more of the buyer's available liquidity.

Equated Monthly Instalment, the periodic repayment amount on a loan that typically includes principal and interest.

EMI affects monthly cash flow and changes with loan amount, tenure and interest rate.

The ratio of the loan amount to the value of the property considered by the lender.

LTV influences how much of the property value a lender may finance and how much the buyer must fund personally.

A numerical indicator used by lenders, along with other factors, to assess a borrower's credit behaviour and repayment profile.

A stronger credit profile may improve loan approval prospects and pricing, subject to lender policy.

Interest paid on the amount of a home loan that has been disbursed before full EMI repayment begins, commonly relevant to construction-linked disbursement.

Pre-EMI may keep early payments lower but does not reduce principal in the same way as a regular EMI.

A home loan where the interest rate is fixed for a specified period or under stated conditions, depending on lender terms.

It can provide repayment predictability but may carry different pricing or reset rules.

A loan where the interest rate may change with the lender's benchmark or reference rate and applicable spread.

Rate movements can change EMI, tenure or both depending on lender policy.

A fee charged by a lender for processing a loan application, subject to lender policy and taxes.

It adds to the upfront cost of arranging finance and may be partly or fully non-refundable.

The core quoted price of a property before additional charges, taxes, statutory costs, floor premiums, parking or other applicable items.

The base price is rarely the same as the final amount paid by the buyer.

A quoted total price intended to include specified charges in addition to the base price; inclusions and exclusions must be checked carefully.

It can make comparisons easier only when every component is clearly listed.

An additional charge that may apply to a property because of a preferred location, view, floor, corner position or other project-specific attribute.

PLC can materially change the final cost even when two homes have the same carpet area.

Recurring charges collected for upkeep, management, services and common facilities in a residential development, subject to association or project rules.

They form part of the ongoing cost of owning and living in the property.

A reserve fund collected for major future repairs, replacements or long-term common expenses, depending on the project or association structure.

It can reduce the need for sudden large collections when major common assets require work.

An increase in a property's market value over time.

Appreciation may be influenced by location, infrastructure, demand, supply, quality and broader market conditions, but is never guaranteed.

Annual rental income expressed as a percentage of the property's value or acquisition cost, depending on the calculation method used.

It helps investors compare income potential across properties and locations.

The gain arising from transfer of a capital asset such as property, calculated under applicable tax rules.

Tax treatment depends on holding period, cost, deductions and prevailing law.

A property interest where the owner generally holds the land and building rights without a fixed lease term, subject to law and title conditions.

Freehold ownership is commonly perceived as offering broader long-term control than leasehold tenure.

A property held under a lease for a specified term from the landowner or lessor, subject to lease conditions.

The remaining lease period, renewal conditions, transfer permissions and charges can affect value and financing.

A completed property that is available for possession, subject to required completion and occupancy documentation.

Buyers can inspect the actual unit and surrounding environment before purchase and may avoid construction-period uncertainty.

A property purchased before construction and handover are complete.

Such purchases require careful review of approvals, RERA disclosures, construction progress, payment schedule and delivery risk.

A person who applies for a home loan jointly with the primary applicant and shares repayment responsibility under the loan agreement.

Adding a suitable co-applicant may affect eligibility, ownership planning and tax treatment depending on the facts.

An initial amount paid to indicate serious intent to proceed with a property transaction, subject to the written terms agreed by the parties.

Refundability and forfeiture depend on the agreement, so informal payments can create disputes.

A form used to record a buyer's application or request to book a specific unit, usually with project and payment details.

It may contain important commercial and cancellation conditions even before the main agreement is signed.

The date or period by which possession is expected or contractually committed, subject to the agreement, regulatory disclosures and permitted extensions.

It affects rent planning, loan cash flow, moving schedules and buyer remedies in case of delay.