Real estate has its own language. Understanding common terms and concepts helps you make informed decisions and communicate effectively with agents, brokers, and legal professionals.
Property Types and Features
- Apartment/Flat: A self-contained housing unit within a larger building
- Villa: A standalone house with private land, usually in a gated community
- House: An independent residential building with attached land
- Built-up Area: Total area including walls, balconies, and common areas
- Carpet Area: Usable area excluding walls and common areas
- Super Built-up Area: Built-up area plus share of common areas
Financial and Legal Terms
- Down Payment: Initial cash payment towards property purchase (typically 20-30%)
- EMI (Equated Monthly Installment): Monthly payment for home loan
- Interest Rate: Cost of borrowing, typically 7-8% annually for home loans
- Principal: The original loan amount borrowed
- Stamp Duty: Tax paid to government on property purchase (5-10%)
- Registration: Legal process of recording property ownership with government
- Title Deed: Official document proving property ownership
Market and Investment Terms
- Appreciation: Increase in property value over time
- Depreciation: Decrease in property value
- Cap Rate: Annual income divided by property value (investment metric)
- Rental Yield: Annual rent as percentage of property price
- Ready-to-Move: Property ready for immediate occupation
- Under-Construction: Property still being built
- Resale: Property sold by an individual owner, not the developer
Documentation Terms
- NOC (No Objection Certificate): Document stating no legal claims on property
- Encumbrance Certificate: Proof that property is free from debts and mortgages
- Sale Deed: Legal agreement transferring property ownership
- Possession Letter: Document giving right to occupy the property
- Property Card: Official record issued by municipal corporation
- Occupancy Certificate: Government approval for occupancy of building
Transaction and Process Terms
- Offer Price: Amount offered to buy a property
- Negotiation: Process of discussing and agreeing on price
- Agreement for Sale: Preliminary agreement before formal sale deed
- Possession Date: Date when buyer can move into property
- Booking Amount: Initial payment to reserve property during construction
- Brokerage: Commission paid to real estate agent (typically 1-2%)
Property Features
- BHK: Bedroom-Hall-Kitchen configuration (e.g., 2BHK=2 bedrooms)
- Balcony: Open outdoor space attached to living area
- Common Area: Shared spaces like corridors, elevators, lobbies
- Parking: Assigned or shared parking space
- Amenities: Facilities like gym, pool, security, power backup
Location Terms
- Locality: Specific neighborhood or area
- Connectivity: Proximity to roads, public transport, highways
- Micro-location: Specific street or building within locality
- Pincode/Postal Code: Area code for mailing and identification
- Vicinity: Nearby area with surrounding amenities
Common Abbreviations
- BUA: Built-up Area
- SBA: Super Built-up Area
- CA: Carpet Area
- RCC: Reinforced Cement Concrete
- NPA: Non-Performing Asset (property with payment issues)
- ROI: Return on Investment
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