Indian Real Estate Glossary
30 property terms explained in plain language — from carpet area and FSI to RERA and stamp duty. Bookmark this page for quick reference during your property search.
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Area
Carpet Area
The actual usable floor area within the walls of an apartment. Does not include the thickness of walls, balcony, terrace, or common areas. Under RERA, carpet area is the only legally valid measure for pricing.
Built-Up Area
Carpet area + area occupied by walls + area of the balcony/terrace. Typically 10-15% more than carpet area. Some builders quote this instead of carpet area to make units seem larger.
Super Built-Up Area
Built-up area + proportionate share of common areas (lobby, staircase, lift, gym, clubhouse). Can be 25-40% more than carpet area. Commonly used by builders for pricing before RERA.
Construction
FSI (Floor Space Index)
The ratio of total built-up area to the plot area. An FSI of 2.0 means you can build 2 sq.ft of floor area for every 1 sq.ft of land. Higher FSI = taller buildings allowed. Set by the local development authority.
FAR (Floor Area Ratio)
Same as FSI. The term FAR is more common in North India (Delhi, UP), while FSI is used in West and South India (Maharashtra, Karnataka, Tamil Nadu).
TDR (Transfer of Development Rights)
A certificate that allows extra FSI to be used on a different plot. Issued when a landowner surrenders land for public purposes (roads, parks). The TDR can be used or sold, effectively allowing taller buildings on receiving plots.
Occupancy Certificate (OC)
Issued by the municipal authority certifying that a building is fit for habitation and complies with approved building plans. Without an OC, water, electricity, and gas connections may not be provided.
Completion Certificate (CC)
Issued by the municipal authority confirming that construction is complete and matches the approved building plan. A prerequisite for obtaining the Occupancy Certificate.
Legal
Conveyance Deed
A legal document that transfers ownership of common areas and land from the builder to the housing society. Without a conveyance deed, the society doesn't legally own the building's common areas.
Encumbrance Certificate (EC)
A document from the Sub-Registrar Office that certifies a property has no pending mortgages, liens, or legal claims. Essential for verifying clear title before purchase.
Sale Deed
The primary legal document that transfers property ownership from seller to buyer. Must be registered at the Sub-Registrar Office to be legally valid. Contains property description, price, and terms.
NOC (No Objection Certificate)
Various NOCs are required during property transactions: from the housing society (for resale), from the builder (if within the RERA period), from the bank (if mortgaged), and from various government departments (fire, water, etc.) during construction.
Power of Attorney (POA)
A legal document authorizing someone to act on your behalf for property transactions. "General POA" grants broad authority; "Special POA" is limited to a specific property and transaction. Special POA is required for property sales in most states.
Ownership
UDS (Undivided Share)
The proportionate share of land that an apartment owner holds in a multi-storey building. In a 10-apartment building on 1,000 sq.ft of land, each owner might have a UDS of 100 sq.ft. UDS determines your share of the land value.
Freehold
The owner has complete ownership of both the building and the land it sits on. No lease or ground rent is payable. The most desirable form of property ownership.
Leasehold
The owner has the right to use the property for a fixed period (typically 30-99 years) but doesn't own the land. Common in Delhi, Noida, and government-allotted properties. The land reverts to the lessor after the lease expires unless renewed.
Regulatory
RERA
Real Estate (Regulation and Development) Act, 2016. A central law that regulates the sale of residential and commercial real estate. Requires project registration, mandates use of carpet area for pricing, protects buyers from delays, and establishes state-level regulatory authorities.
DTCP (Directorate of Town and Country Planning)
The state-level authority responsible for approving layouts and building plans outside municipal corporation limits. DTCP approval is essential for plots in peri-urban and planned township areas.
CMDA / BMRDA / HMDA
Metropolitan Development Authorities that regulate land use and building permissions in metro areas. CMDA (Chennai), BMRDA (Bangalore), HMDA (Hyderabad). Layout approval from the relevant authority is mandatory.
Revenue
Mutation
The process of updating municipal/revenue records to reflect the new property owner after a sale. Required for property tax assessment in the buyer's name. Done at the local municipal corporation or tehsil office.
Khata
A revenue document (mainly in Karnataka and some South Indian states) that records property ownership in the municipal records. "A Khata" means the property owner is directly assessed for tax. "B Khata" means the property doesn't have all required approvals.
Patta
A revenue document (common in Tamil Nadu) that records land ownership. Patta is issued by the Revenue Department and is essential for establishing ownership of land parcels.
Chitta
A Tamil Nadu revenue document that records land classification (wet, dry, garden) and ownership details. Chitta and Patta together establish land ownership in Tamil Nadu.
Tax
TDS (Tax Deducted at Source)
For property transactions above ₹50 lakhs, the buyer must deduct 1% TDS (from resident sellers) or 12.5% TDS (from NRI sellers for LTCG) and deposit it with the Income Tax department using Form 26QB.
Transaction
Stamp Duty
A tax paid to the state government when registering a property transfer. Calculated as a percentage (typically 5-10%) of the higher of the agreed price or circle rate. Rates vary by state and buyer gender.
Registration Charges
A fee paid to the Sub-Registrar for officially recording the property transfer. Usually 1-2% of the property value, separate from stamp duty. Some states include it in stamp duty.
e-Stamp
An electronic stamp paper issued by the Stock Holding Corporation of India Limited (SHCIL). Replaces physical stamp paper for property transactions. Can be purchased online or at authorized centres. Reduces fraud risk.
Valuation
Circle Rate
The minimum property value per unit area set by the state government for each locality. Also called guideline value, ready reckoner rate, jantri rate, DLC rate, or collector rate depending on the state. Stamp duty is calculated on the higher of the circle rate or agreed sale price.
Market Value
The price a willing buyer would pay a willing seller in an open market transaction. Usually higher than the circle rate, sometimes significantly (1.3x to 3x in urban areas).
Kappa (κ)
In the Kubera AVM model, kappa is the market premium scalar — the ratio of market price to government value (circle rate). A kappa of 1.5 means the market trades at 1.5x the circle rate in that locality.