Glossary
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Allotted Land- Land that the government has allotted to Indians in a ratio of 40, 80 and 160 acres.
Allottee- A person who owns an undivided interest in a parcel of allotted land.
Acre - A measurement of a land/unit that is proportionate to 43560 square feet.
Agent- An agent is a person who has the authority or the license to act for or represent the principal.
Addendum- Changes or additions made to a contract.
Affordable housing - refers to housing units that can be afforded by people
whose income is below the prescribed household income.
Amenities- Features and facilities offered by builders that increases the value of your property.
Appreciation- The value of your property increases as a result of the change in market conditions or other economic/social factors.
Asset- A property of certain monetary value that can be owned by an individual or a firm.
Asking price- Price of a property that is stated by the seller.
Balloon Payment- A large amount that is paid to clear a debt.
Broker - An individual or a company that brings together the owners and buyers with a view to complete a real estate transaction. He charges a percentage as brokerage fee.
Base rent- A fixed amount of rent that is determined before incorporating other expenses or factors that act as provisions for increasing rent over the term of lease.
Built up area- Refers to the area that covers the carpet area, the thickness of the walls and common areas like car parking, lobbies and atriums.
Building contract- A contract between the building contractor and the owner/occupier of the property stating all the terms and conditions under which the construction can be carried out.
BHK - Bedroom, Hall, Kitchen BSP- Basic Selling Price
Bank-owned property- A property that has been possessed by a bank when a buyer defaults on payments.
Buy-to-Let- Buying a residential property for the purpose of earning revenue through rentals.
Buyer’s market - When the market favours the end users/buyers with lower property prices coupled with increase in the number of properties for sale.
Building code/By laws- They are a set of standards established and enforced by the local government to regulate the minimum standard of construction, zoning, building design and structural safety of the buildings.
Carpet area - The area that is calculated from wall to wall inside the house.
Common area - Areas that can be used by more than one tenant/owner withinthe building. E.g. Parking lot and lobbies.
Common area maintenance - Charges incurred by the tenant or owner for the upkeep of the common areas.
Capital transaction - The act of purchasing or selling a property.
Condominium - An apartment or a building with a number of individual flats or houses that can be owned or rented.
Commercial property - A property that is let out for business purposes only.
Construction Linked Plan (CLP)- CLP is a payment plan where the instalments are paid to the developer as per the predetermined stages of construction of the property.
Deposit- An amount that a potential buyer submits to show his seriousness about purchasing the property.
Down payment- A portion of the purchased property price that is paid up front.
Debt- A sum of money that is owed to another individual.
Developer- An individual or a company which develops sites that can be used for residential or commercial properties.
Encroachments- A section of the property or establishment that illegally protrudes into another individual’s property or street.
Expansion- The act of expanding a surface.
EMI (Equated Monthly Instalment)- The customer repays the loan through EMIs.
Estate agent- An individual who acts as an agent to sell or rent out buildings/land for his clients.
Elevation- It is the front or side view of a building.
Floating rate- Any interest rate that shifts on a repeated basis. The change is usually driven by outside factors like the prime interest rate.
Fixed rate- A loan interest that remains the same throughout the duration of your loan term.
Fixed lease- A fixed rental amount that a lessee pays through out the duration of the lease term.
FSI (Floor Space Index)- The ratio of the complete floor area of the building to the size of the land.
Farmhouse- A farm house is a building that serves as the residential property of a farm.
Finance- The act of providing funds to an individual or an enterprise.
Floor plan- A floor plan is a diagram or a sketch of the layout of the building. It also shows specification of individual rooms.
Gated community- A gated community is a residential or a housing estate that is very tightly guarded with walls. These communities have a number of residential units and include various amenities.
Gross area- Gross area is the total floor area of a building. Exterior of the walls are included too.
Gross building area- Gross building area equals to the total floor area of the building including basement, balconies and exterior walls.
Ground coverage- The ground coverage is the ground area covered immediately above the plinth level by the building.
Home inspection- An examination of the structure of the house that helps you determine the condition of the property for evaluation purposes.
Household- A house and its occupants living in a unit residence are regarded as a household.
Heir- An individual who lawfully inherits an estate or a property of another on that person’s demise.
Home loan- A sum that is advanced to a buyer by a bank or an individual to assist in buying a property.
Insurance-The act of protecting or insuring a property or an individual against the loss or damage caused by unanticipated events such as death, fire, theft etc.
Inventory- A detailed list or a record of property Immovable property- An immovable object that is attached to the earth like land and buildings.
Investment property- When the owner leases out a property not occupied by him to an individual with an intent to earn an income e.g. -renting a house.
Joint tenants- Co-owners who share ownership of land or other items at identical interests.
Kiosk- Tiny retail outlets which are located at public places where customers could purchase items like newspaper.
Lease- A contract where the property is conveyed to another individual for a specified period usually for rent.
Loan- A sum of money that is borrowed for temporary use. The loan sum is expected to be paid back with interest.
Landlord- An individual who owns and rents out buildings and lands.
Landmarks- Landmarks are buildings or heritage sites that are marked to be preserved by the government.
Market Value- Is the price at which the seller is willing to sell and the buyer willing to buy.
Mortgage- Is a contract or a deed where an individual borrows an amount to purchase a property, and if the borrower fails to repay the money, the lender may take possession of the property.
Mortgagee- An individual who lends money in the mortgage agreement is a mortgagee.
Maintenance Charge- The charges incurred by tenant or owner for the upkeep of common areas.
Master Plan- Is a document or a certificate that narrates the overall development of city/site using maps.
Occupant- Is a person or a group of people who reside in a house or office estate.
Office Park- Is a complex or a building with a number of corporate office grouped together.
Owner- Is an individual who is the legal possessor of a property or an asset.
Office- Are set of rooms where business or professional work is carried out.
Ownership- The act of owning and controlling a property.
Price Range- The highest and the lowest amount the buyer is willing to pay to buy a home.
Property- Ownership or possession of intangible and tangible things like a piece of land or real estate.
Property Tax- An amount that is levied as tax on real or personal property.
Public housing- Residential areas that are owned and funded by the government that are made available for low-income families.
Premises- Is usually a part of a building or a building including the adjacent grounds.
Pre-Launch- Is a phase before the site is official launched. Plan- A proposition or a tentative project.
Real Estate Agent- Is a person who works for a real estate broker. This individual is licensed to represent either the buyer or a seller in a transaction in exchange for a commission.
Realtor - Is an individual or a real-estate agent who is affiliated with the National Association of Realtors.
Remaining Balance- A sum of money from the principal amount that has not been repaid yet.
Rentable area- A measured unit of a building that could be rented or leased to tenants.
Residential Property- A property that used for residential purposes like apartments, single-family homes and town-houses.
Renovate- Restoring, renovating or reviving a building to good condition.
Row house- A series of similar architecturally designed homes built side by side and joined by common walls.
Rental Agreement- A rental agreement is a document that describes the terms and conditions of dwelling and calls for the lessee to pay the lessor for the use of an asset.
Ready to Occupy- Refers to a space that needs no further alteration or improvements by the tenant or the landlord.
Resale Property- The act of selling a property for the second time. A resale property gives buyers an opportunity to purchase a previously owned home.
Security- When an individual deposits or gives something as assurance of the fulfilment of an obligation like repayment of a loan.
Shopping Mall- Are large retail complexes or structures consisting of a number shops, restaurants in a single large building.
Site Plans- A site plan is a landscape architecture document that shows boundaries and the physical extent of the ground.
Super Built-up Area- An aggregate superficial area of the building taking each floor, external walls, and common areas into account.
Slab- A slab is a type of a concrete foundation on which the home/building has to be built on.
Section- A unit of land that is equal to 640 acres.
Tenants- An individual or a lessee who occupies or resides over a property through lease.
Tenure- The act of holding something in one’s possession.
Trade area- An area that is designated to customers who come to do business.
Technology Park- Are major developments that comprise of high-end office spaces as well as residential and retail developments.
Taxes- A compulsory contribution that is levied by the government on people’s income and business profits.
Town-house- Are a number of simple or duplex units that share the same boundary with other homes.
Township- A small settlement or a town that serves as the business centre for rural areas.
Title deed- A legal document that acts as on evidence of rights like ownership of a property.
Utilities- Private or public services that are offered as part of the development as known as utilities. E.g. Water, gas and electricity.
Urban centres- An area in the city that has been largely developed and has several independent administrative districts.
Under-valuation- When a value of the property is proposed to be lesser than the fair market value.
Vacant Land- A plot of land that is empty and has not been developed.
Vacancy- A number of units that are vacant and are available for occupancy at a given time within a given market.
Vaastu Shastra- Is an ancient doctrine or a design system that specifies the detailed methodology of designing building. This system harmonizes any real estate development with five elements like air, water, earth, fire and space.
Valuation- The act of making a written analysis of the estimated value of the property for a particular purpose of letting or purchasing property.
Value- The price of an asset that might fetch more reasonable profit if disposed at the right time.
Villa- A luxurious independent houses that are built on own grounds.
Affidavit- A written statement of facts voluntarily made by an affiant under an oath or affirmation administered by a person authorized to do so by law.
Assumption Clause- A provision in a mortgage contract that allows the seller of a home to pass responsibility to the buyer of the home for the existing mortgage.
ARM (Adjustable-rate mortgage) - A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes Amortisation. The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases and the amount applied to principal increases so that the loan is paid off (amortised) in the specified time.
Amortisation schedule- A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
Appraiser- An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.
Appreciation- The increase in the value of a property due to changes in market conditions, inflation, or other causes.
Assessment- The placing of a value on property for the purpose of taxation.
Beneficial Use- A right to utilize real property, including light, air and access to it, in any lawful manner to gain a profit, advantage, or enjoyment from it. A right to enjoy real or Personal Property held by a person who has equitable title to it while legal title is held by another. A beneficial use involves greater rights than a mere right to possession of land, since it extends to the light and air over the land and access to it, which can be infringed by the beneficial use of other property by another owner.
Beneficiary- Anybody who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone who is eligible to receive distributions from a trust, will or life insurance policy. Beneficiaries are either named specifically in these documents or they have met the stipulations that make them eligible for whatever distribution is specified.
Bond- Is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.
Contract- An agreement that is enforceable by law.
Encumbrance- A claim against a property by another party. Encumbrance usually impacts the transferability of the property.
Penal rent- A form of a punishment to a tenant for failing to honour his obligation to pay rent at the proper time, taking the form of a vastly higher figure being payable during the period of default.
Remaining Term- The original term of the loan after the number of payments made has been subtracted; the number of payments or time period left on a loan.
Registration- An act of officially entering name and other details of entity/transaction for purpose of official records.
Sale deed- Document in writing that transfers the ownership of property from the seller to the buyer for a consideration. This document has to be registered compulsorily.
Sales agreement- Formal contract by which a seller agrees to sell and a buyer agrees to buy, under certain terms and conditions spelled out in writing in the document signed by both parties.
