80 terms
Real-estate terms, explained plainly.
The words your buyers, bankers and RERA filings use, and what each one means for your sales team.
A
Agreement for saleThe registered contract between developer and buyer for an under-construction unit. Under RERA it must be signed before collecting more than 10%.
Allotment letterThe letter a developer issues after booking, confirming the unit allotted to the buyer, price, payment plan and key terms, before the agreement for sale.
B
BHKBedroom, Hall, Kitchen. The standard Indian way to describe a flat's layout: a 2 BHK has two bedrooms, a living room and a kitchen.
Booking amountThe first substantial payment that reserves a unit for a buyer, often 5% to 10% of the price. RERA caps pre-agreement collection at 10%.
BrokerageCommission paid to a channel partner for a booking, usually a percentage of the agreement value, paid on an agreed trigger such as registration.
Built-up areaCarpet area plus the thickness of the flat's walls and, usually, its balcony. Larger than carpet area, smaller than super built-up area.
C
Cancellation and refundThe process and terms when a buyer cancels a booking: deductions allowed, refund timelines and who gets paid if a home loan is involved.
Carpet areaThe net usable floor area of a flat, inside the external walls. Under RERA it is the area a developer must use to state the size of an apartment.
Carpet vs saleable areaCarpet area is what a buyer uses inside the flat. Saleable (super built-up) area adds walls and common areas. RERA requires carpet area in the agreement.
Channel partnerAn external broker who brings buyers to a developer's project in exchange for brokerage on successful bookings. Must be RERA-registered.
Circle rateThe minimum property value set by a state or district for stamp duty, used in Delhi, UP, Haryana and others. Similar to ready reckoner or guidance value.
CollectionsThe work of getting buyers to pay instalments on time: raising demands, reminders, receipts, follow-ups on overdue amounts and reconciliation.
Commencement certificate (CC)Permission from the local planning authority to start construction as per the approved plan. Usually issued in stages, often up to plinth first.
Completion certificateCertificate from the local authority confirming a building was completed as per the approved plan and rules. Often a precondition for OC.
Construction-linked plan (CLP)A payment plan where instalments fall due as construction stages are completed: plinth, each slab, brickwork, finishing and possession.
Conversion rateThe share of leads that reach a later stage, such as lead to site visit or site visit to booking. Track each stage separately.
Conveyance deedThe deed transferring title of the land and common areas to the buyers' association. RERA Section 17 sets the obligation and a default timeline.
Corpus fundA one-time sinking fund collected from buyers at possession and handed to the residents' association for major repairs and long-term upkeep.
Cost per bookingTotal acquisition cost for a channel (ads, portal fees, brokerage) divided by bookings from it. The metric that shows which channels really pay off.
Cost per lead (CPL)Marketing spend divided by the number of leads from that spend. Useful for comparing campaigns, but only meaningful alongside conversion to booking.
Cost sheetA unit-wise breakdown of the total price: base cost, PLC, floor rise, parking, GST, stamp duty, registration and other charges a buyer must pay.
CRM (customer relationship management)Software that records every lead, conversation, visit, booking and payment in one place. A real-estate CRM adds inventory, cost sheets and collections.
Customer ledgerThe running account of every demand raised, payment received, credit note and interest charge for one buyer's unit, with the balance due.
D
Defect liability periodUnder RERA Section 14(3), the promoter must fix structural or workmanship defects reported within five years of possession, within 30 days, free of charge.
Demand letterA formal notice to a buyer to pay an instalment that has fallen due, stating stage, amount, GST, due date and the bank account to pay into.
Discount approvalA rule that discounts above a set limit need a manager's or owner's approval before they are offered, with a record of who approved what.
Down payment planA payment plan where the buyer pays most of the price upfront, often 90% or more within weeks of booking, usually in exchange for a lower price.
E
Encumbrance certificate (EC)A certificate from the sub-registrar listing registered transactions on a property over a period. It shows mortgages or sales that may affect title.
EOI (expression of interest)A refundable payment or form showing a buyer's interest in an upcoming project. Using EOIs to pre-sell before RERA registration is risky.
F
G
H
HandoverThe physical transfer of a finished unit to the buyer: inspection, snag list, key handover, documents and meter transfers.
Home loan sanctionA lender's approval of a loan amount for a buyer, based on income, credit and the property. Sanction comes before any disbursement.
Hot, warm and cold leadsA simple way to rank leads by intent. Hot: ready to visit or book soon. Warm: interested but undecided. Cold: unreachable or no near-term intent.
I
Input tax credit (ITC)Credit for GST paid on inputs. Developers on the 1%/5% residential rates cannot claim ITC, so GST on materials becomes part of construction cost.
Interest on delayed paymentInterest a buyer pays when an instalment is late. RERA requires the same rate to apply to promoter delays, as prescribed in state rules.
InventoryThe list of all units in a project with their status (available, on hold, booked, sold, blocked), area, price and attributes.
K
L
LaunchThe formal start of sales for a project or phase, after RERA registration. Usually backed by an ad campaign, launch pricing and a sales event.
Lead scoringRanking leads by how likely they are to buy, using budget fit, timeline, engagement and source, so reps call the best leads first.
Lead sourceWhere a lead came from: Meta ads, a property portal, Google, a channel partner, a walk-in or a referral. The basis for measuring marketing spend.
Loading factorThe percentage by which super built-up area exceeds carpet area. A 40% loading means 1,000 sq ft carpet is sold as 1,400 sq ft saleable.
Loan disbursementThe release of sanctioned home loan money to the developer. For under-construction flats, banks disburse in tranches as construction stages are met.
M
Maintenance depositAdvance maintenance collected at possession, often for 12 to 24 months, to run common services until the association takes over.
Meta Lead AdsFacebook and Instagram ads with a built-in form. Buyers submit name and phone without leaving the app, which gives volume but needs fast follow-up.
N
O
OC and CCShort for occupancy certificate and commencement (or completion) certificate. Buyers and lenders ask for both at different stages of a project.
Occupancy certificate (OC)Certificate from the local authority that a building is fit to occupy. Possession is normally handed over only after OC is received.
P
PLC (preferential location charge)An extra charge for a unit with a better position: garden or sea facing, corner, park view. Usually a fixed amount or a per sq ft add-on.
PossessionWhen the buyer receives the right to occupy the unit, normally after OC and full payment. RERA requires the promised date to appear in the agreement.
Power of attorney (POA)A legal document letting one person act for another. NRI buyers often give a POA to a relative in India to sign and register documents.
Pre-EMIInterest-only payments a buyer makes on the disbursed part of a home loan before full disbursement. Full EMIs start after the last tranche.
Pre-launchSelling or taking bookings before formal launch. Under RERA, marketing or booking before project registration is prohibited.
Property portalsListing websites such as 99acres, MagicBricks and Housing.com where developers pay for listings and receive buyer enquiries.
Q
R
Ready reckoner rateMaharashtra's government-set minimum property value per zone. Stamp duty is charged on this value or the agreement value, whichever is higher.
Receivables ageingA report that groups unpaid buyer dues by how long they are overdue: 0-30, 31-60, 61-90 and 90+ days. It shows where collection effort is needed.
Registration feeFee paid to the sub-registrar to register a property document. Often 1% of value, with caps in some states, such as ₹30,000 in Maharashtra.
RERAThe Real Estate (Regulation and Development) Act, 2016. It requires project registration, escrow of buyer money, disclosures and timely possession.
RERA 70% designated accountUnder RERA, 70% of money collected from buyers goes into a separate bank account and may be used only for that project's land and construction cost.
RERA carpet areaCarpet area as defined in Section 2(k) of RERA: usable area excluding external walls, shafts, exclusive balcony and terrace, but including internal walls.
RERA registration numberThe unique number a state RERA authority gives a registered project. It must appear on every advertisement, brochure and website listing.
RERA-registered agentA broker or channel partner registered with the state RERA authority under Section 9. Developers should work only with registered agents for RERA projects.
S
Sale deedThe registered document that transfers ownership of property from seller to buyer. For resale or ready units, it is the final title document.
Sample flatA fully finished and furnished model unit at the site or sales office that shows buyers layout, finishes and specifications.
Site visitA buyer's visit to the project or sample flat. In Indian residential sales, it is the step most strongly linked to booking.
Society formationForming the buyers' association, co-operative society or condominium. RERA requires the promoter to enable it within three months of majority booking.
Stacking planA grid view of a tower showing every unit by floor and position, colour-coded by status. Lets a sales team see availability at a glance.
Stamp dutyA state tax paid on property documents such as the agreement for sale or sale deed. Rates differ by state, location and sometimes buyer gender.
Subvention schemeA plan where the developer pays the buyer's home loan interest for a period (often until possession). RBI has told banks to avoid upfront disbursal.
Super built-up areaBuilt-up area plus a proportionate share of common areas such as lobbies, lifts and clubhouse. Often called saleable area.
T
TallyTally (TallyPrime) is accounting software widely used by Indian businesses, including developers, for books, GST and statutory reports.
TDS under Section 194-IAA buyer must deduct 1% TDS when paying a resident seller for property worth ₹50 lakh or more, and deposit it using Form 26QB.
Token amountA small payment, often ₹50,000 to ₹2 lakh, taken at the site visit or on a call to hold a unit briefly until the full booking amount is paid.
Transfer chargesA fee the developer charges when a buyer sells or assigns an under-construction unit to someone else before possession. Often a per sq ft amount.
Tripartite agreementAn agreement between buyer, developer and lender for a home loan on an under-construction unit. It protects the lender's interest in the property.
U
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