Property Terms,
Plain & Simple

A legal document signed between the buyer and seller (or builder) before the final sale deed. It records the agreed price, payment schedule, possession date, and penalties for default. Does not transfer ownership — the Sale Deed does.

A land parcel that has been approved by the local planning authority (DTCP, CMDA, BDA, HMDA, etc.) for development. Buying an approved layout plot reduces legal risk versus unapproved or panchayat land.

Bedroom, Hall, Kitchen. A shorthand for flat configurations. '2 BHK' means 2 bedrooms, 1 living area, and 1 kitchen. '2.5 BHK' includes an extra room that could be a study, pooja room, or home office.

Carpet area plus the thickness of inner and outer walls. Typically 10–15% more than carpet area. Before RERA, many builders quoted built-up area in their pricing, which inflated the apparent size.

The net usable floor area within the inner walls of a flat — what you can actually walk on. Excludes the thickness of walls, balconies, terraces and common spaces. RERA mandates builders quote price per sqft in carpet area terms.

Issued by the local municipal body confirming that a building has been fully constructed as per the approved plan. Preceded by the OC (Occupancy Certificate), though in practice both terms are used interchangeably in some states.

A property is said to have a clear title when there are no disputes, loans, legal claims, or encumbrances attached to it. Always verify through an Encumbrance Certificate and a lawyer's title search.

The planning authority for Chennai metropolitan area. Approves building plans, layout plans, and issues building permits for projects within its jurisdiction.

Another name for the Sale Deed — the final registered document that transfers ownership from seller to buyer. Also called the Transfer Deed.

The state-level planning authority in Tamil Nadu that approves layouts and building plans outside Chennai's CMDA limits. An approved DTCP plot carries lower risk than unapproved land.

A document from the Sub-Registrar's Office listing all registered transactions (loans, mortgages, sale deeds) on a property for a given period. A 'nil encumbrance' EC means no registered liabilities. Get at least a 15-year EC before buying.

The fixed monthly amount paid to a bank to repay a home loan. It includes both principal and interest, computed so that the loan is fully paid off by the end of the tenure.

Same as FSI. The ratio of total floor area to plot area. Used mainly in Karnataka and Telangana; Tamil Nadu uses the term FSI.

The ratio of total permitted construction area to plot area. An FSI of 2.5 on a 1,000 sqm plot allows up to 2,500 sqm of built-up area across all floors. Set by local planning authorities and varies by zone.

Property where the buyer gets complete ownership of both the building and the land it stands on, with no time limit. Most apartments with UDS are effectively freehold. Contrast with Leasehold.

Under-construction properties attract GST: 1% for affordable housing (priced ≤ ₹45 lakh) and 5% for others (no input tax credit). Ready-to-occupy properties with OC are exempt from GST.

The maximum loan amount a bank will sanction, based on your monthly income, existing obligations, age, credit score, and employment type. Most banks lend up to 75–80% of the property's market value.

A government-certified copy of the property's registered Sale Deed extract from the Sub-Registrar's office. Used to verify ownership details and confirm registration.

A municipal record in Karnataka (BBMP/local bodies) that identifies a property for tax purposes. An A-Khata means the property is legally sanctioned; a B-Khata indicates unauthorised construction. Essential for getting utility connections and loans in Bengaluru.

A property where the buyer gets the right to use the land for a fixed period (99 years is common) but does not own the land outright. The land belongs to a government body or trust. Common in DDA allotments, some Bengaluru layouts.

A government-approved drawing showing how a land parcel is divided into plots, roads, and open spaces. Buying a plot within an approved layout (DTCP, BDA, HMDA) is safer than unapproved land.

The percentage of the property value a bank will finance. For properties above ₹75 lakh, RBI mandates a maximum LTV of 75% — meaning you must fund at least 25% as a down payment.

The price a property would fetch in the open market between a willing buyer and seller. Distinct from the government's Guideline Value (or circle rate), which is used to calculate stamp duty.

A certificate from a bank or financial institution confirming that a property's mortgage has been cleared. Required to get a clean title when buying a resale property that had a home loan.

A project that has just been announced or where pre-launch bookings are open. Pricing is typically 10–20% lower than ready-to-move, but buyers take construction risk. Must be RERA registered before money can legally be collected.

Issued by the local body (CMDA, DTCP, BBMP, HMDA) confirming the building is constructed per sanctioned plans and safe to occupy. Banks require OC before releasing final loan disbursement. Without OC, moving in may be illegal.

A revenue document in Tamil Nadu issued by the Tahsildar that establishes the owner's right to a piece of land. Patta must be in the seller's name before a sale can be registered. Also called Chitta in some contexts.

The date by which the builder commits to hand over the completed unit to the buyer. Under RERA, delayed possession entitles the buyer to interest at the applicable rate on amounts paid.

A legal document authorising one person to act on behalf of another in property transactions. Must be registered for property deals. Verify that the PoA is valid, the principal is alive, and the authority covers the specific transaction.

Interest-only payments made to the bank during the construction period, before the full EMI begins. Full EMI (principal + interest) starts after possession or when the entire loan is disbursed.

Propspedia's proprietary trust score (0–100) that combines project completion status, builder track record, RERA compliance, document quality, and pricing transparency. Higher scores indicate lower buyer risk.

A property that has received its Occupancy Certificate and can be physically occupied immediately. GST-exempt, lower risk, but usually priced higher than under-construction properties.

A fee paid to the state government when a sale deed is registered at the Sub-Registrar's Office. In Tamil Nadu this is 4% of the guideline value or sale value (whichever is higher). Paid in addition to stamp duty.

A central law mandating that all residential projects above 500 sqm or 8 units must be registered with the state RERA authority before marketing. Ensures transparency, protects buyer funds in escrow, and provides a dispute resolution forum.

Under RERA, builders must deposit 70% of collected funds in a dedicated escrow account to be used only for construction of that specific project. This protects buyers from fund diversion to other projects.

The registration number assigned to a project by the state RERA authority. Verify it on the official state RERA portal (TNRERA for Tamil Nadu, K-RERA for Karnataka, TSRERA for Telangana) before booking.

A property that has been previously owned and is being sold by an individual, not the original builder. Resale transactions are GST-exempt. Key checks: verify OC, title chain, pending dues (property tax, maintenance), and get an EC.

The primary legal document that transfers ownership of a property from seller to buyer. Must be registered at the Sub-Registrar's Office by paying stamp duty and registration fee. This is what makes you the legal owner.

The mandatory minimum distance that must be maintained between a building and the plot boundary. Set by the local planning authority. Violating setback norms makes a structure unauthorised.

The government office where property sale deeds, mortgage deeds, and other registered documents are recorded. All property transactions above ₹100 must be registered at the SRO.

A state government tax levied on property transactions, calculated as a percentage of the sale value or guideline value (whichever is higher). Tamil Nadu: 7%. Karnataka: 2–5% based on value. Telangana: 4%.

Built-up area plus the buyer's proportionate share of common areas (lobby, lifts, staircase, clubhouse, generator room). Can be 20–35% larger than actual carpet area. RERA does not mandate pricing on super built-up area.

When a buyer purchases property for ₹50 lakh or more from a resident seller, the buyer must deduct 1% TDS from the payment and remit it to the government. Filed using Form 26QB. The seller claims it when filing their tax return.

A legal investigation of a property's ownership history to confirm that the seller has a clear and marketable title, free from disputes or encumbrances. Typically covers 30 years and is done by a lawyer before purchase.

Tamil Nadu's RERA authority. All residential projects in TN above the threshold must be registered at tnrera.in. Buyers can verify projects and file complaints through this portal.

The fraction of the plot that legally belongs to each flat owner in an apartment complex. Even though the land is shared, each owner holds their UDS forever. In Tamil Nadu, stamp duty is calculated on UDS value plus construction value.

A property that is approved and being built, but not yet completed or handed over. Buyers take on construction risk. Protected under RERA: 70% of funds go into escrow, and delayed possession attracts interest penalties on the builder.

An ancient Indian architectural system that prescribes directional orientation and spatial arrangement to promote wellbeing. A significant consideration for many South Indian buyers; 'north-facing' and 'east-facing' properties typically command a premium.

An independent ground-level house, usually part of a gated community, with a private garden and parking. Distinct from a row house (attached on one or both sides) or an apartment. Typically offers more privacy but at a higher price per sqft than apartments in the same locality.

A final inspection of a completed property unit before taking possession. Check all fittings, finishes, plumbing, electrical, and list snag items (defects) for the builder to rectify before the sale deed is registered.