A
Agreement to Sell
हिंदी: Bikri Samjhauta
A legal contract between buyer and seller agreeing to sell a property at a future date on agreed terms. Different from Sale Deed which transfers actual ownership.
📌 Example: You sign Agreement to Sell in January for Rs 1.5 crore, actual registration happens in March after loan is ready.
Affordability
हिंदी: Khareedne Ki Kshamata
A buyer's ability to purchase property based on income, savings and loan eligibility. General rule: EMI should not exceed 40% of monthly take-home salary.
📌 Example: Monthly salary Rs 1 lakh → max EMI Rs 40,000 → eligible for approximately Rs 50-55L loan at 8.65%.
Annual Property Tax
हिंदी: Varshik Sampatti Kar
Tax paid yearly to local municipal authority (nagar nigam) based on property type, size and location. Varies by city.
📌 Example: In Noida, a 1000 sqft apartment might attract Rs 2,000-5,000 annual property tax. Women owners get discount in many cities.
B
Bigha
हिंदी: Bigha
A unit of land area used in North India, especially UP, Bihar, MP and Rajasthan. Size varies by state — in UP, 1 Bigha = approximately 2,500 sqm. Not standardized.
📌 Example: "10 bigha zameen" in UP Bigha = approximately 25,000 sqm or about 2.5 hectares.
Builder Buyer Agreement
हिंदी: Nirman Karta Khareeddar Samjhauta
The main contract between buyer and builder for under-construction property. Should include: carpet area, possession date, payment schedule, penalty clause for delay, list of amenities.
📌 Example: Always have a lawyer review this before signing. The penalty clause for delay is the most important part.
C
Carpet Area
हिंदी: Kaalaeen Ka Kshetrafal
The actual usable floor area inside the walls of an apartment — the area where you can lay a carpet. Under RERA, builders must quote carpet area separately.
📌 Example: A "1200 sqft" apartment might have only 850 sqft carpet area. Always ask for carpet area, not super area.
Circle Rate
हिंदी: Sarkari Mulya
The minimum property value per sqft set by the state government for stamp duty calculation purposes. Also called Ready Reckoner Rate. Market price is often higher.
📌 Example: Circle rate in Sector 150 Noida is Rs 5,800/sqft. But market rate is Rs 12,000/sqft. Stamp duty is calculated on circle rate (whichever is higher).
CLU (Change of Land Use)
हिंदी: Bhoomi Upyog Parivartan
Government permission to change land from agricultural to residential or commercial use. Essential for legal residential projects in peri-urban areas.
📌 Example: Before buying a plot, check if CLU has been obtained. Without CLU, agricultural land cannot be converted to residential legally.
E
EMI (Equated Monthly Installment)
हिंदी: Masik Kist
Fixed monthly payment to repay a home loan, covering both principal and interest. Calculated based on loan amount, interest rate and tenure.
📌 Example: Rs 50L loan at 8.65% for 20 years = approximately Rs 44,000 monthly EMI.
F
FSI / FAR (Floor Space Index)
हिंदी: Farsil Suchi
The ratio of total built-up area to the total plot area allowed by the government. Higher FSI = taller buildings allowed.
📌 Example: If FSI is 2 on a 1000 sqm plot, maximum 2000 sqm can be built. In Mumbai, FSI can go up to 5 in premium areas.
FEMA (Foreign Exchange Management Act)
हिंदी: Videshi Mudra Prabandhan Adhiniyam
Law governing how NRIs can invest in Indian property. Allows NRIs to buy residential and commercial property freely, but agricultural land needs RBI permission.
📌 Example: NRI can repatriate property sale proceeds up to the original investment amount. More than that needs RBI approval.
O
OC (Occupancy Certificate)
हिंदी: Adhivasita Praman Patra
Government certificate confirming that a building has been constructed as per approved plan and is safe for occupation. Without OC, possession is technically illegal.
📌 Example: Always insist on OC before taking possession. Without OC, you cannot get electricity connection, water connection or bank loan on resale.
R
RERA (Real Estate Regulatory Authority)
हिंदी: Real Estate Niyamak Pradhikaran
Law enacted in 2016 to protect homebuyers. Makes RERA registration mandatory for projects over 500 sqm or 8 units. Gives buyers rights to information, timely possession and refunds.
📌 Example: Every legitimate project has a RERA number. Verify it at your state RERA portal (.gov.in) before booking.
Ready Reckoner Rate
हिंदी: Taiyar Sandarbh Dar
Same as Circle Rate — the government-set minimum value for property transactions. Used to calculate stamp duty.
📌 Example: If circle rate is Rs 5,000/sqft and market rate is Rs 8,000/sqft, stamp duty is calculated on Rs 8,000 (whichever is higher).
S
Sale Deed
हिंदी: Vikray Patra
The legal document that transfers ownership of property from seller to buyer. Must be registered at sub-registrar office. Stamp duty is paid on this.
📌 Example: After signing Sale Deed and paying stamp duty + registration fee, ownership officially transfers. Keep this document safe — it is the most important property document.
Stamp Duty
हिंदी: Mudrank Shulk
Tax paid to state government on property purchase. Typically 5-7% of property value. Women buyers get discount (1-3%) in most states.
📌 Example: On Rs 1 crore property in UP: Stamp duty = Rs 6-7 lakh + Registration fee = Rs 2 lakh. Total government cost = Rs 8-9 lakh.
Super Area
हिंदी: Kunj Kshetrafal
Total area including apartment carpet area plus proportionate share of common areas (lobbies, lifts, corridors). Always larger than carpet area.
📌 Example: Builders often advertise super area. A 1200 sqft "super area" apartment might have only 840 sqft carpet area. Use our Area Converter to check.