Introduction
Buying or selling property in India can feel like learning a new language—full of terms like carpet area, RERA, or benami. But understanding this real estate terms India glossary helps you act confidently and avoid confusion. This guide decodes key words, explains how they matter, and uses simple Indian examples so you won’t feel lost during your next property conversation.
1. Types of Property Ownership
- Freehold: You fully own the land and building forever—most buyers prefer this.
- Leasehold: The builder or government owns the land; you lease it for 30–99 years. Typically cheaper but has limitations.
- Joint/Co-ownership: When more than one person legally owns a property together. Useful for couples or siblings investing together.
2. Key Documents & Legal Terms
- Title Deed / Title: Proves ownership and the right to use, sell, or lease the property.
- Sale Deed / Deed: This official document outlines the final sale.
- Encumbrance Certificate (EC): Shows if any loans or legal claims are attached to the property.
- Power of Attorney (PoA): Lets someone act for you in transactions if you can’t be present.
- Benami Transaction: When someone buys property under another’s name—illegal and can lead to seizure under the Benami Act
- RERA (Real Estate Regulation and Development Act 2016): A law ensuring transparency and accountability in real estate, safeguarding buyers’ rights. All projects must be RERA-registered
3. Space & Measurement Terms
- Carpet Area: The actual usable floor area inside your home—where you can lay a carpet.
- Built-up Area: Combines carpet area plus wall thickness.
- Super Built-up Area: Includes built-up area plus common areas like lobbies and staircases.
- Acre: Used for land measurement; 1 acre = 43,560 sq ft.
4. Property Types & Features
- Apartment/Flat: Individual unit in a multi-story building.
- Builder Floor: 2–4 apartments built on a single land plot.
- Condominium: Luxury apartments with shared amenities.
- Independent House/Villa: Fully standalone with its own land.
- Farmhouse: Typically in semi-rural areas, used for weekend stays or events.
5. Financial & Loan Terms
- Down Payment: Your initial upfront payment—usually 10–20% of the property price.
- Stamp Duty: Government tax on registration—often lower for women owners.
- Mortgage: A loan taken by pledging the property as collateral.
- Home Loan: Loan specifically for buying, building, or renovating a home.
- Adjustable/Floating Mortgage Rate: Interest rate that varies with market rates.
- Fixed-Rate Mortgage: Interest rate stays the same throughout the loan tenure.
- Cap Rate (Capitalization Rate): NOI ÷ current market price—helps investors gauge how much return they’ll earn.
6. Transaction Process Terms
- Broker/Agent: Facilitates buying, selling, or renting.
- Listing Agreement: Contract that lets a broker advertise your property.
- Bayana (Token Amount): Small deposit given to show sincerity before signing Agreement to Sale.
- Possession Certificate: Confirms when you can start occupying the property.
- Escrow: Third-party holds funds securely until sale conditions are met.
- Due Diligence: Your chance to verify documents and check for legal issues.
7. Renting & Leasing Terms
- Lessor / Lessee: Landlord and tenant, respectively.
- Lease / Rent Agreement: Official document laying out terms like rent amount and duration.
- Security Deposit: Refundable amount taken to cover unpaid dues or damages.
- Rental Yield: Expected annual return (%) from rent income.
- Eviction: Legal process to remove a tenant; usually involves court notices.
8. Valuation, Taxation & Investment Terms
- Appraisal / Valuation: Independent assessment of the property’s worth—important for loans.
- Capital Gain / Loss: Profit or loss from selling above/below purchase price.
- NOI (Net Operating Income): Rental income minus operating costs—used to calculate cap rate.
- Title Insurance: Insurance that protects against hidden ownership disputes.
- Property Tax: Annual local tax based on area or rental value—controlled by municipal bodies like BBMP in Bangalore
9. RERA-Specific Terms
- RERA Registration Number: All sale projects must display this number.
- Quarterly Progress Report: Developer submits updates; buyers can check on-site or online.
- Escrow Account: Used to receive and release buyer payments only for construction, protecting funds.
10. Pro Tips for Beginners
- Always ask: “What’s the carpet area?”
- Demand title deed chain and EC for legal clarity.
- Verify RERA number and project status online.
- Get property appraised before finalizing price or loan.
- Factor in stamp duty, registration, and maintenance before budgeting.
Real-Life Example
Ravi bought a 2 BHK in Pune:
- Carpet area 850 sq ft, built-up 1,050 sq ft.
- Title searched through venue and EC showed no liens.
- Project RERA registered; developer shared quarterly update.
- Loan at a fixed rate with appraisal report matching sale price.
Quick Glossary
- Carpet area: Usable indoor space.
- Built-up area: Carpet + wall thickness.
- Freehold: Full ownership.
- Sale Deed: Final sale document.
- Stamp Duty: Government tax.
- Appraisal: Property valuation.
- Cap Rate: Profitability metric.
Conclusion
Knowing these real estate terms India gives you power—whether you’re inspecting a property, signing a loan, or arguing price. Keep this easy property glossary handy to stay informed, confident, and in control during every step of your real estate journey.
Source : fulinspace.com