Glossary
Indian Real Estate, Explained Plainly
Buying a flat in India means meeting a hundred terms nobody ever defined for you — most of them invented by the people selling to you. Here they are, in plain English, with the numbers worked out.
Area & Measurement
18 termsFive different numbers describe the same flat. Only one has legal force — and it isn't the one on the brochure.
Amenity SpaceThe clubhouse you pay for twice and use rarely.BHKIt tells you the rooms. Not the size.Balcony AreaExcluded from carpet. Charged at full rate.Built-Up AreaCarpet area plus the walls and balcony. 10–20% larger.Carpet AreaThe usable floor space inside your flat — and the real price you pay per square foot.Carpet vs Built-Up vs Super Built-UpAll five area figures, compared. The one table to keep.Common AreaYou pay for it twice. The second time never stops.Floor PlanFind the north arrow. Nobody does.How to Measure Carpet AreaA Rs 1,500 laser. RERA gives you a remedy.Indian Land UnitsBigha, guntha, cent, ground. And a bigha isn't a bigha.Loading FactorThe gap between what you pay for and what you get. Normally 25–40%.Plinth AreaThe footprint. Walls included.Price Per Square FootEveryone compares it wrongly. Here's how not to.RERA Carpet AreaThe legal definition, in Section 2(k). Includes internal walls.Saleable AreaThe number you're billed against. It has no legal definition.Sq Ft vs Sq Yard vs Sq MetreTwo conversions. Check any quote in India.Super Built-Up AreaThe brochure number. Adds your share of the lobby and clubhouse.Usable AreaNot a legal term. That's exactly the point.
Legal & Documents
37 termsIndia has presumptive title, not conclusive title — the state does not guarantee that the seller owns what they are selling. Verifying it is entirely your job. These are the documents you use.
A Khata vs B KhataNo loan. No building approval. That's the 10-30% discount.Agreement for SaleA promise, not a transfer. But it's where everything is decided.Allotment LetterThe first document with your flat number on it. Not a transfer.Builder-Buyer AgreementForty pages, written by their lawyers. Here's where to look.CC vs Completion vs OCThree certificates. Only one lets you move in.Chain of TitleEvery owner, in order. One broken link is enough.Commencement CertificatePermission to start. No CC, no legal building.Completion CertificateBuilt as approved. And it removes 5% GST.Conveyance DeedDoes your society own the land? Usually not.Conveyance vs Deemed ConveyanceOne is voluntary. One isn't.Deemed ConveyanceGetting the land when the builder won't give it.E-KhataKarnataka's digital khata. Verify it yourself, free.Encumbrance CertificateWhat's owed against it. Ask for 30 years, not 13.GPA vs SPAWhich one, and why it matters.General Power of AttorneyA GPA sale is not a sale. The Supreme Court said so in 2011.Gift DeedTransfer without money. And usually without a way back.Gift vs Relinquishment vs PartitionPick the wrong one and you pay full stamp duty.KhataKarnataka. A khata vs B khata can cost you your home loan.Lease DeedOver 12 months? It must be registered.Mortgage DeedAnd the equitable mortgage that leaves no trace.Mother DeedWhere the ownership began. Every title search starts here.MutationUpdates the tax record. It is not title. Do it anyway.Mutation vs RegistrationYou need both. Most buyers do one.No Objection CertificateEvery one you'll need. Start them early.Occupancy CertificateFit to live in. Do not take possession without it.Partition DeedDividing what's jointly held.PattaTamil Nadu. And why your flat probably doesn't have one.Power of AttorneyAuthority to act. Never ownership.Relinquishment DeedGiving up your share — only to a co-owner.Sale DeedThe document that actually transfers ownership.Sale Deed vs Agreement for SaleThe difference that costs people their homes.Special Power of AttorneyOne job, one document. What NRIs should use.Succession CertificateNot what you need for a flat.Title DeedIndia has presumptive title. The state does not guarantee it.Title Deed vs Mother Deed vs ECFour documents, four questions.Undivided Share (UDS)The building depreciates. The land appreciates. This is your share of it.WillTwo witnesses. And it beats succession law.
Land Records
12 termsEvery state calls it something different — 7/12, RTC, Adangal, Jamabandi, Khasra, Patta, Khata. All free to check online. And none of them, on its own, proves you own anything.
7/12 Extract (Satbara)Maharashtra. Agricultural land — not your Mumbai flat.AdangalAndhra & Telangana. And the prohibited property list.ChittaTamil Nadu. Nanjai and punjai are BOTH agricultural.How to Check Land Records OnlineEvery state, free, in ten minutes. And what the record does NOT prove.Index IIProof that a registration actually happened.JamabandiPunjab & Haryana. Check the date — it may be four years old.Khasra NumberNorth India's plot number. And the map nobody looks at.Land Use ConversionYou cannot build on agricultural land. People find out too late.Pattadar PassbookTelangana's Title Deed cum Passbook.Property CardMaharashtra, urban. Whose name is on it — yours or the builder's?RTC / PahaniKarnataka's Record of Rights. Not the same as a khata.Tehsil / TalukThe office that holds your records.
Project & Payment
24 termsUnder construction or ready? Which payment plan? What's refundable? The decisions you make while money is moving.
Booking AmountRERA caps this at 10%. Almost nobody knows.CLP vs Down Payment vs SubventionWhich plan, and what each really costs.Construction Linked PlanPay as they build. The safest plan for a buyer.Corpus FundA one-time deposit. Did the builder hand it over?Down Payment PlanA 5-10% discount for all of your leverage.Earnest MoneyDesigned to be forfeited if you walk away.Joint Development AgreementWho is actually liable to you?Maintenance ChargesThe monthly bill. 18% GST above Rs 7,500.Maintenance vs Corpus vs Sinking FundThree payments, three purposes.New LaunchLowest price, longest wait. Judge the builder, not the brochure.No Dues CertificateArrears follow the property. Not the person.Possession CertificateNOT an occupancy certificate.Pre-LaunchUsually illegal. Read this before you pay anything.Ready to Move PropertyZero GST, zero wait, zero delivery risk.Sinking FundFor the lift that fails in 2040.Society Bye-LawsRead them BEFORE you buy. Nobody does.Society Transfer FeeThere may be a cap. Most people don't know.Structural AuditMandatory. Skipped. And buildings fall down.Subvention SchemeThe builder pays your EMI. The loan is in your name.Token AmountThe first money you part with. Often not refundable.Token vs Booking vs Earnest MoneyThree payments, three different risks.Under Construction PropertyCheaper, riskier, and 5% GST applies.Under Construction vs Ready to MoveThe maths nobody does. The 15% discount may be worth nothing.What to Check at PossessionYour last moment of leverage. Use it.
Home Loans & Finance
27 termsThe largest cheque most people ever sign for, and the one they research least. Rates, benchmarks, eligibility — and the RBI rule that lets you prepay for free, which almost no borrower has been told about.
Balance TransferFree to leave. Which is your best leverage.Bridge LoanBuy before you sell. On one assumption that often fails.CIBIL ScoreIt sets your rate. Fixed. For twenty years.Closing a Home LoanRBI: your papers back in 30 days, or Rs 5,000 a day.DisbursementStaged disbursal can save Rs 10 lakh of interest.Documents RequiredIt's never the salary slips. It's the property.EBLRRepo + spread. Resets every 3 months. You can verify it.EMIIn year one, 85% of it is interest. That matters.EMI MoratoriumA pause, not a holiday. The interest keeps running.FOIRYour car EMI is costing you Rs 25 lakh of house.Fixed vs Floating RateAnd the prepayment rule that usually decides it.Home LoanThere is no 100% loan. And RBI banned prepayment charges.Home Loan EligibilityFour numbers decide it. Three you can fix first.Home Loan InsuranceNot mandatory. And usually financed into the loan.Home Loan PrepaymentRBI banned the charges. Almost nobody knows.Joint Home LoanCo-owner AND co-borrower. Get one wrong and you get nothing.LTV RatioWhy there is no 100% home loan. And the valuation trap.Loan Against PropertyCheap. And your house is the security.MCLRBorrowed before Oct 2019? You're probably overpaying.MCLR vs EBLRA 0.3-0.8% gap. And a switch that pays for itself.NRI Home LoanThe account rules that trip people up.PMAYThe old scheme died in 2022. The new one may not help you.Pre-EMIThree years of it, and you owe exactly what you borrowed.Processing Fees & ChargesRs 80,000, negotiable, and frequently waived. Ask.Repo RateYour EMI is built on it. If it didn't move, ask why.Sanction LetterYour spread is fixed here. For twenty years.Top-Up LoanCheap money. But check what the tax rules allow.
Authorities & RERA
18 termsThe Act, the authorities, and how to make them work for you.
Building Plan ApprovalEvery deviation is unauthorised construction.Development AuthorityBDA, HMDA, DTCP. And who actually had jurisdiction.FSI / FARUnused FSI becomes a tower in your garden.Ground CoverageHow much of the plot is actually open.How to File a RERA ComplaintYou do not need a lawyer. File it yourself.Layout ApprovalBuy in an unapproved layout and you may never build.Master PlanA road may be planned through your plot.RERAThe Act that forced disclosure, escrow and carpet area into Indian property.RERA AgentNo registration number? Walk away.RERA Escrow AccountThe 70% rule. The most important reform in the Act.RERA PenaltiesUp to 10% of project cost. And prison.RERA Possession DelayInterest for every month. The choice is YOURS.RERA PromoterEvery obligation the builder owes you.RERA Registration NumberIt must be on every advertisement. Verify it.SetbackFire access. And the commonest violation in India.State RERA PortalsEvery state. And the one search nobody runs.TDRDevelopment rights, bought and loaded onto your plot.ZoningLand doesn't become residential because someone built flats.
Tax
24 termsStamp duty, registration, capital gains. What you owe and when.
Capital Gains on PropertyThe rules changed on 23 July 2024. Most sites still publish the old ones.Circle RateThe government's minimum valuation. A floor, not a ceiling.Circle Rate vs Market RateFive names, one idea. And why under-declaring doesn't work.Form 26ASDid the buyer's TDS actually reach you? Check.Form 26QBThe buyer files it. Rs 200 a day if you're late.GST on Property5% under construction. Nil once the completion certificate is issued.Guideline ValueTamil Nadu. Where the combined rate is 11% — India's highest.How to Calculate Stamp DutyOn the higher of two numbers. Plus the concession nobody asks about.Indexation BenefitAbolished in 2024 — except for one group.LTCG vs STCG on Property24 months. The most expensive date in Indian property.Long Term Capital Gains12.5%. And indexation is gone.Property TaxThe annual bill. And the arrears that follow the property, not the person.Ready Reckoner RateMaharashtra. And in Mumbai it sets your property tax too.Registration ChargesThe fee to record your deed. 4% in Tamil Nadu.Section 24(b)Rs 2 lakh interest. And zero, if you're on the new regime.Section 54 ExemptionSell a house, buy a house, pay no tax. There's a deadline.Section 54 vs 54FThe gain, or everything. A residential plot is not a house.Section 54F ExemptionSell anything else. But reinvest the WHOLE sale price.Section 80CPrincipal, stamp duty, registration. Your EPF may have filled it already.Section 80EEAAn extra Rs 1.5 lakh — but the window closed in 2022.Short Term Capital GainsYour slab rate. And no exemptions at all.Stamp DutyThe state tax on transfer. Charged on guideline value, not your price.Stamp Duty vs Registration ChargesTwo payments, one counter, entirely different jobs.TDS on Property Sale1% for residents. Far more for NRIs — and the BUYER is liable.
Buying & Investment
16 termsVerification, due diligence, and the questions to ask before you pay a booking amount.
Capital AppreciationThe land appreciates. The building doesn't.Distress SaleCheap for a reason. Find the reason.Home Inspection ChecklistGo at 4pm. And after rain.How to Check RERA RegistrationVerify any project in ten minutes, free. State portals and red flags.How to Value a PropertyThree methods. Where they disagree is the point.Market ValueFour numbers, all different. Only one is real.New vs ResaleThe 5% GST difference nobody adjusts for.Property BubbleYields are the tell. Almost nobody looks.Property CycleIndian housing was flat from 2013 to 2021.Property Due Diligence ChecklistEverything to check, in order. Free checks first.Property FlippingThe costs and the tax will eat you.Real Estate AgentFollow the money. Whose side are they on?Rent vs BuyThe honest answer. From a property site.Rental YieldIn Indian metros it's under 2% net. We'll say so.Resale PropertyNo GST. But arrears follow the property.Yield vs AppreciationKnow which bet you're actually making.
NRI & Foreign Buyers
12 termsYou can buy a flat in Bengaluru without asking anyone's permission. You cannot buy a field — and the penalty for trying is three times what you paid. FEMA, the accounts, the power of attorney, and the tax that hits NRIs harder than residents.
Can a Foreigner Buy Property?Mostly no. Unless you hold an OCI card.Can an NRI Buy Agricultural Land?No. And every workaround fails.FEMAThe law. And a real Rs 41 lakh penalty.Lower Deduction CertificateWorth Rs 15 lakh of cash flow. Apply early.NRE vs NRO vs FCNRThe account decides if the money can leave.NRI InheritanceYou may inherit what you cannot buy.NRI Property GuideEverything, in order. And the 3x penalty.NRI Rental Income & TaxYour tenant must deduct TDS. They don't know.NRI Selling PropertyTDS on the WHOLE sale price, not the gain.NRI vs OCI vs PIOPIO is gone. And residency is a technical test.POA for NRIsSpecial, not general. And REVOKE it.RepatriationUSD 1 million a year. Decided when you BUY.
Tenure & Ownership
12 termsFreehold or leasehold? Shares, or the flat itself? Survivorship, or shares to the heirs? And the GPA 'sale' the Supreme Court killed in 2011 — which people are still buying.
Adverse Possession12 years. And absent owners lose land.Apartment Owners AssociationYou own the flat directly.Co-operative Housing SocietyYou own SHARES. Not the flat.Easement20 years of tolerance becomes a permanent right.Freehold PropertyYours. Outright. Forever.Freehold vs LeaseholdThe number that decides it. And the bank test.GPA SaleThe Supreme Court killed these in 2011. People still buy.Joint OwnershipSurvivorship, or shares? The deed usually doesn't say.Leasehold PropertyAsk how many years are left. Nobody does.Lien on PropertyIt follows the property. Not the person.Share CertificateIn a co-op, this IS your title. Keep it in a locker.Society vs AssociationTwo ways to own the same flat.
Property Types
12 termsVilla, row house, duplex, penthouse, builder floor, plot, farmhouse, chawl, pagdi. Different names, and — far more importantly — different amounts of the one thing that actually appreciates: the land.
Builder FloorDelhi NCR. And the UDS nobody asks about.ChawlMumbai. And the redevelopment question.DuplexTwo floors. And a staircase you paid for.FarmhouseUsually on land you cannot build on.Gated CommunityWho actually owns the clubhouse?Pagdi SystemYou pay crores. You never own it.PenthouseIs that terrace actually yours? Usually not.Plotted DevelopmentBuy the land, build it yourself.Row HouseShared walls, own door. Often the best value.Service ApartmentGreat yield. Possibly not allowed.VillaYour own plot. And your own problems.Villa vs ApartmentLand, or liquidity. Pick one.
More terms are being added
We're building this out to cover the whole of Indian home buying — home loans, capital gains, NRI purchase, khata, conveyance, possession. If there's a term you've hit and can't find here, WhatsApp us and we'll explain it and then write it up.