Real Estate Glossary

Real Estate Glossary

1. Affordable Housing: Housing units that are reasonably priced for lower or middle-income groups.
2. Agreement to Sell: A contract wherein both parties agree to the terms and conditions of a property sale.
3. Amenities: Essential and luxury facilities provided in a residential complex.
4. Appreciation: Increase in the value of a property over time.
5. Balcony Area: The area of the balcony which is calculated separately from the carpet area.
6. Built-Up Area: Carpet area plus the thickness of outer walls and the balcony.
7. Bhk: Stands for Bedroom, Hall, Kitchen.
8. Broker: An intermediary who arranges the buying/selling/renting of properties.
9. Carpet Area: The actual usable floor area.
10. Circle Rate: The minimum value at which the sale or transfer of a plot, built-up house, or a flat can occur.
11. Common Area Maintenance (CAM): Maintenance charges for common areas.
12. Completion Certificate: Issued by municipal authorities on the completion of a building.
13. Conveyance: Transfer of property ownership from one party to another.
14. Cooperative Housing Society (CHS): A society where residents own their apartments and form a cooperative to own common areas.
15. Credai: Confederation of Real Estate Developers’ Association of India.
16. DALP: Down Payment.
17. Deed: A legal document that represents the ownership of an asset.
18. Distress Sale: When a property is sold urgently, usually below the market rate.
19. Due Diligence: Thorough research before entering a transaction.
20. Encumbrance Certificate: Proof that the property is free from legal liabilities.
21. Equated Monthly Installment (EMI): Monthly payment towards a loan.
22. Escrow Account: A third-party account that holds funds until transaction conditions are met.
23. Fair Market Value: The price at which a property would sell under normal conditions.
24. Floor Area Ratio (FAR or FSI): Ratio of a building’s total floor area to the size of the land.
25. Freehold: Direct ownership of property and the land it stands on.
26. Front-End Ratio: Ratio of a loan payment to the buyer’s gross income.
27. Gated Community: A residential community with restricted access.
28. Goods and Services Tax (GST): Tax on the sale of new properties.
29. Home Insurance: Insurance covering property damage and other personal risks.
30. Housing Loan: Loan taken to buy, build, or renovate a house.
31. Index II: A government-issued document that acts as proof of property registration.
32. Joint Property: Property owned by more than one individual.
33. JDA (Joint Development Agreement): Agreement between a landowner and a developer.
34. Khata: A municipal document showing property details.
35. Leasehold: The right to use a property for a specified time, without owning it.
36. Liability: Debt owed by an individual or company.
37. Maintenance Charges: Fees for maintaining common property areas.
38. Market Value: The highest estimated price of a property in an open market.
39. Mortgage: A loan taken against the security of property.
40. Mutation: A process that transfers title ownership from one person to another.
41. NOC (No Objection Certificate): A clearance certificate.
42. Occupancy Certificate: Issued by local authorities, stating a building’s compliance.
43. Patta: Legal document for land ownership.
44. Possession Letter: Issued by a builder stating the handover of a property to the buyer.
45. Power of Attorney: Legal authorization to represent or act on another’s behalf.
46. Property Tax: A tax on the ownership of a property.
47. RERA: Real Estate (Regulation and Development) Act, 2016 – legislation for real estate industry regulation.
48. Registration: Recording the ownership of property in government records.
49. Rental Yield: Annual rental income as a percentage of property cost.
50. Resale Property: Property which is being sold for the second time or more.
51. Right of First Refusal: The right to be the first allowed to purchase a property.
52. Sale Deed: A legal document proving the sale and transfer of property ownership.
53. Stamp Duty: A tax paid during property registration.
54. Subvention Scheme: Home loan where the developer pays the pre-EMI interest.
55. Super Built-Up Area: Built-up area plus common areas.
56. Tenant: A person who rents property.
57. Title: A document proving property ownership.
58. Token Money: An initial deposit to confirm interest in purchasing a property.
59. Uds (Undivided Share): A stake in the commonly owned land on which an apartment is built.
60. Valuation: Determining the current worth of an asset.
61. Vastu Shastra: Ancient Indian architecture system.
62. Veteran Loan: A home loan for military veterans.
63. Water Charge: Fee for water supply in a residential community.
64. Xerox Copy: Photocopy of property documents.
65. Yield: Return on investment, usually from rental income.
66. Zoning: Rules that dictate how areas of land can be used.
67. Under-Construction: Property still being built or not ready for possession.
68. Ready-To-Move: Property ready for immediate possession.
69. Pre-Launch: A property announced for sale before its official launch.
70. Outright Purchase: Buying property without any loans or EMI.
71. Negotiable: Price or terms that can be discussed and altered.
72. Market Rate: The common selling price in a particular area.
73. Loan-to-Value Ratio (LTV): The ratio of a loan to the appraised value of the property.
74. Landlord: Owner of a rented property.
75. Interest Rate: Percentage of loan amount charged by banks.
76. Installment: Regular payment towards loan repayment.
77. Inaugural Discount: Price reduction offered during the initial phase of a property sale.
78. Fixed-Rate Mortgage: Home loan with a constant interest rate.
79. Equity: The value of ownership in a property.
80. Endorsement: An addition to a document or contract.
81. Easement: The right to use someone else’s property for a specific purpose.
82. Down Payment: Initial payment made when purchasing a property.
83. Default: Failure to repay a loan.
84. Creditor: A person or institution that lends money.
85. Compound Wall: A wall that encloses a property’s boundaries.
86. Collateral: An asset offered as security for a loan.
87. Civic Amenities: Basic facilities provided by local authorities.
88. Built-Up Area: Area covered by a building including exteriors.
89. Brokerage: Fee charged by a broker for their services.
90. Breach of Contract: Violation of any terms in a contract.
91. Boundary: Physical or plotted limits of a property.
92. Booking Amount: Amount paid to book a property.
93. Block: A group of buildings or flats in a residential area.
94. Appraisal: Determination of property’s monetary value.
95. Adjustable-Rate Mortgage: Home loan with a variable interest rate.
96. Acquisition: Obtaining ownership of a property.
97. Abstract: Summary of property’s title history.
98. Absorption Rate: Rate at which homes sell in a specific market.
99. Abatement: Reduction in the level of taxation faced by an individual or company.
100. AAA (Triple A): Highest credit rating given by debt analysis agencies