Indian Real Estate Glossary

The price declared in the official sale deed, on which stamp duty and GST are calculated. May differ from the actual transaction value if an upfront cash component is involved.

A one-time fee charged by the builder for access to shared facilities like the clubhouse, swimming pool, gym, and landscaped areas. Paid at the time of booking or possession.

The area including the carpet area plus the thickness of inner walls. Typically 10–15% more than carpet area. Some builders still quote prices per sq ft of built-up area.

The actual usable floor area within the walls of a flat — the area on which you can literally lay a carpet. RERA mandates that all pricing be disclosed per sq ft of carpet area.

The minimum value fixed by the state government for a property in a specific locality, used as the floor for stamp duty calculation. Also called Ready Reckoner rate or guideline value.

A certificate issued by the local municipal authority certifying that the building has been constructed as per the approved plan. Required before the Occupancy Certificate is issued.

A one-time deposit collected from flat owners at the time of possession, kept as a reserve for future major repairs and maintenance of the society. Usually ₹25,000–₹1,00,000.

A legal agreement between a landowner and a developer giving the developer rights to develop the land in exchange for a share of the developed units or sale proceeds.

The fixed monthly payment made to a bank or NBFC for repayment of a home loan, comprising both principal repayment and interest on the outstanding balance.

An additional per-square-foot charge applied to flats on higher floors, reflecting the premium of better views, more light, and lower noise. Typically ₹15–100 per sq ft per floor above the base floor.

A unified indirect tax applicable on under-construction residential properties at 5% (1% for affordable housing). Properties with Occupancy Certificate attract zero GST.

See Circle Rate. Used interchangeably in South India (especially Tamil Nadu and Karnataka) to refer to the government's minimum property valuation for stamp duty purposes.

A formal letter from the bank confirming approval of a home loan up to a specified amount, subject to property documentation. Valid typically for 3–6 months.

The government authority responsible for overseeing property registration in each state. State IGR portals are the authoritative source for stamp duty rates and registration procedures.

An arrangement where a landowner and developer jointly develop a property, with agreed sharing of constructed units or revenue. Common in South India.

A revenue document (used mainly in Karnataka) that records a property in the municipal records with the owner's name. Required for property tax payment and utility connections. Equivalent to mutation in other states.

A temporary agreement (usually 11 months) that gives the licensee permission to use a property without creating a tenancy. Widely used for rental arrangements in Maharashtra.

A document executed when a borrower deposits their property title deeds with a bank as security for a home loan. Attracts stamp duty of 0.1–0.2% of the loan amount in most states.

The process of updating revenue records at the local municipal body or panchayat to reflect a change in property ownership. Must be done after registration. Also called Khata Transfer or Property Card Transfer.

A certificate issued by a housing society or relevant authority confirming no objection to a proposed transaction. Required from the society for resale flat transactions.

A certificate issued by the local municipal authority confirming that a building is complete and fit for habitation. Once OC is received, GST no longer applies on sale of units.

An additional charge for flats with preferred views or positions — garden facing, pool facing, corner units, or road-facing. Typically ₹100–500 per sq ft, layered on top of floor rise.

A legal document authorising a person to act on behalf of another in property transactions. A registered POA allows someone to sign and register documents on the principal's behalf.

See Circle Rate. Used primarily in Maharashtra. The state government publishes annual ready reckoner rates for every locality, serving as the minimum value for stamp duty calculation.

A statutory body established under the Real Estate (Regulation and Development) Act 2016 to regulate real estate projects and protect home buyers. All projects above a specified size must be registered with RERA.

The primary legal document that transfers ownership of a property from seller to buyer. Must be executed on stamp paper, signed by both parties, and registered at the Sub-Registrar's office to be legally valid.

The process of registering a housing cooperative society or Residents Welfare Association (RWA) for a residential complex. Under RERA, builders must form the association within a specified period after a majority of units are sold.

The area including carpet area, wall thickness, and a proportionate share of common areas like lobbies, stairways, and lifts. Typically 20–30% more than carpet area. Now less commonly quoted following RERA.

Tax Deducted at Source at 1% of the property consideration, mandatory when the property value exceeds ₹50 lakh. Deducted by the buyer from the payment to the seller and deposited via Form 26QB within 30 days.

The proportionate share of the land on which a building stands, allotted to each flat owner. Important for legal ownership and determines rights if the building is ever redeveloped.