88 Real Estate Words You Should Know | Real Estate Glossary

This guide explains common words used in buying, selling, or renting property. It will help you understand what real estate agents, lawyers, and banks are talking about.

Table of Contents

• A - Abatement Notice to Assessed Valuation
• B - Balloon Payment to Built-Up Area
• C - Construction-Linked Payment Plan to Conveyance
• D - Deed to Duplex
• E - Earnest Money Deposit to Executor
• F - Floor Space Index to Freehold
• G - Gated Community to Guarantor
• H - Habitable to HVAC
• I - Immovable Property to Inventory
• J - Joint Agent to Joint Ownership Agreement
• K - Khata to Knee Wall
• L - Land Tax to Load Bearing
• M - Maintenance Charges to Mixed-Use Development
• N - Negotiation to Mutation
• O - Occupancy Certificate to Operating Cost Escalation
• P - Patwari to Pugree
• Q - Qualified Covenant
• R - Realtor to Requisitions On Title
• S - Sale Deed to Strata Title
• T - Tax Base to Trustee
• U - Under-Valuation to Utilities
• V - Vaastu Shastra to Vitrified Tiles
• W - Warehouse to Written Down Value
• X - X Mark to Xystus
• Y - Yield
• Z - Zoning to Zoning Ordinance
• Frequently Asked Questions

A

Abatement Notice

This is a warning letter sent to property owners who aren't following the rules. It tells them what problems they need to fix. The letter also says what might happen if they don't make these changes. Most people get these notices for things like too much noise or unsafe buildings.

Acre

An acre is how we measure land size. It equals 4,048 square meters or 43,560 square feet. Think of it as about the same size as a football field without the end zones. When buying rural property, you'll often hear prices "per acre."

Addendum

Something added to a contract after it's been signed. People use addendums when they need to change something in the original agreement. For example, you might add an addendum after a home inspection finds problems.

Agent

Someone with a license to help people buy and sell property. Agents must pass tests and follow rules set by the government. They work for their clients and must put their clients' needs first.

Alienation Clause

This part of a loan agreement says you must pay back all the money you owe when you sell your house. Banks include this to stop people with low interest rates from passing their loans to new buyers.

Alley

A narrow path behind buildings. Alleys let trucks make deliveries or garbage pickup without blocking main streets. In some neighborhoods, well-designed alleys create nice walking shortcuts.

Allottee

The person who gets a property from the government or a builder. This term is common in planned communities or public housing projects.

Appraisal

A professional estimate of what a property is worth. Banks require these before giving loans to make sure they're not lending too much money. Appraisers look at similar nearby properties that sold recently to decide on a fair price.

Appreciation

When property becomes more valuable over time. This happens because of better neighborhoods, home improvements, or just more people wanting to buy homes. Most houses gain about 3-5% value each year, but this changes a lot depending on where you live.

Assessed Valuation

The value your local government puts on your property to figure out your taxes. This number is often different from what your home would sell for. Many places update these values only every few years.

B

Balloon Payment

A huge final payment on a loan, much bigger than your regular payments. Some loans start with small payments but end with one giant payment. These are more common in business property loans than home loans.

Basic Sales Price (BSP)

The main price of an apartment without extra costs like parking spots or club membership. When looking at new buildings, always ask what's included in the BSP and what costs extra.

Bayana

An Indian word for earnest money - cash you give after agreeing on a price but before signing all the papers. It shows you're serious about buying. If you back out for no good reason, you might lose this money.

Beneficiary

Someone who gets benefits from a trust or estate. In loan papers, the bank is usually the beneficiary because they get the payments. If someone leaves you property in their will, you're a beneficiary.

Building Code

Rules about how buildings must be constructed. These rules make sure buildings are safe, accessible, and built to last. Each city or county has its own building codes that all new construction must follow.

Built-Up Area

The total size of a property including the walls and balconies. This measurement is always bigger than the usable floor space. Builders often advertise this larger number, so ask about the actual living space too.

C

Construction-Linked Payment Plan

A way of paying for a home being built where you pay different amounts as construction moves forward. You might pay 20% when they finish the foundation, another 30% when walls are up, and so on.

Carpet Area

The floor space you can actually use, not counting walls or shared areas. This is the true size of your living space. In many places, sellers must now clearly state the carpet area, not just the larger built-up area.

Conveyance

The legal process of transferring property from one person to another. It involves paperwork, money changing hands, and recording the change with the government.

D

Deed

The legal paper that transfers ownership. It's like a receipt for buying property. There are different kinds of deeds offering different levels of protection to buyers. A warranty deed is the safest for buyers.

Dejure Possession

When the law says you own something, even if you don't physically have it yet. For example, you might have dejure possession of a house still being built because you've signed all the papers.

Depreciation

When property loses value. This can happen because the building gets old, the neighborhood changes, or fewer people want to buy in that area. For tax purposes, rental property owners can claim depreciation to reduce taxes.

Disbursement

Paying out money to settle debts. At closing, the bank disburses funds to the seller, old mortgage company, property tax office, and others who need to be paid.

Down Payment

The money you pay upfront when buying property. Most regular loans ask for 5-20% down, while FHA loans might accept just 3.5%. Bigger down payments usually mean better loan terms and lower monthly payments.

Dual Occupancy

When zoning rules let you build two homes on one piece of land. This helps create more housing without sprawling outward. Some families build a second small home for grandparents or adult children.

Duplex

A building split into two homes with a shared wall between them. Many investors buy duplexes so they can live in one side and rent out the other to help pay the mortgage.

E

Earnest Money Deposit (EMD)

Money you put down when making an offer to show you're serious. It's usually 1-3% of the purchase price. If the deal goes through, this money counts toward your down payment.

Elevation

A drawing showing how the outside of a building will look when finished. These drawings help buyers picture the completed project before construction even starts.

Encroachment

When part of a building or fence crosses onto someone else's property without permission. Common examples are fences built over property lines or trees with branches hanging over a neighbor's yard.

Encumbrance Certificate

An official paper that says a property is free from legal problems like unpaid loans or disputes. Getting this certificate is an important step before buying property to avoid nasty surprises later.

Equity

The part of your property that you truly own. If your house is worth $300,000 and you owe $200,000 on your mortgage, your equity is $100,000. Equity grows as you pay down your loan and as your property becomes more valuable.

Eviction

The legal process of removing tenants who aren't paying rent or are breaking other rules. Landlords must follow specific steps and get court approval before forcing someone to leave.

Executor

The person named in a will to handle someone's affairs after they die. This often includes selling property or transferring it to heirs.

F

Floor Space Index (FSI) / Floor Area Ratio (FAR)

A number that shows how much you can build on a piece of land. For example, if you have a 10,000 square foot lot with an FSI of 2.0, you can build up to 20,000 square feet of space - maybe a five-story building with 4,000 square feet on each floor.

Flex Space

Buildings designed to be used in different ways. A flex space might combine an office with a warehouse or a workshop with a showroom. These spaces adapt to changing business needs.

Flexi Payment Plan

A payment schedule based on time rather than construction progress. Instead of paying when certain building stages are complete, you pay on specific dates regardless of how far along construction is.

Floor Plan

A drawing that shows the layout of rooms in a house or apartment. Good floor plans show the sizes of rooms and where doors and windows are located. Many new developments now offer 3D floor plans you can virtually walk through.

Foreign Exchange Regulation Act (FERA)

A law controlling how foreigners can buy property in India. These rules protect local markets from being taken over by outside investors.

Freehold

When you own both the building and the land it sits on completely. There's no time limit, and you don't pay rent to anyone for the land. This is different from leasehold properties.

G

Gated Community

A neighborhood with walls or fences around it and guards at the entrances. People often choose these communities for security and shared amenities like pools or tennis courts.

Greased Lease Back

A deal where someone sells their property but then rents it back with rent that changes based on things like business income. This gives both sides flexibility as markets change.

Green Field Site

Land that's never been built on before, usually outside cities. These sites give developers a fresh start but often need new roads, power lines, and water pipes.

Gross Building Area

The total size of a building measured from the outside walls, including everything inside. This measurement counts all space whether it's usable or not.

Guarantor

Someone who promises to pay your loan if you can't. Young buyers with little credit history often need parents to be guarantors on their first mortgage.

H

Habitable

Safe and suitable for people to live in. To be habitable, homes need working plumbing, electricity, heat, and no serious safety problems.

Heir

Someone who legally inherits property when the owner dies. Heirs are named in wills or determined by law if there's no will.

High Rise

A tall building with many floors and elevators. In big cities, high-rises might have 25+ stories, while in smaller cities they might be 7-8 stories tall.

Holding Deposit

Money paid to take a property off the market while you decide whether to buy it. If you go ahead with the purchase, this money usually counts toward your deposit.

Home Improvement Loan

Money borrowed specifically for fixing up your home. These loans often have lower interest rates than credit cards because your house serves as collateral.

HVAC

Heating, Ventilation, and Air Conditioning systems that control temperature and air quality in buildings. Modern HVAC systems focus on saving energy while keeping people comfortable.

I

Immovable Property

Things permanently attached to land that can't be moved without damage, like houses, buildings, and fixed structures.

Indenture

A formal written agreement between parties. In the past, these documents had matching notches on each copy to prove they were authentic - hence the name "indenture."

Indian Stamp Act 1899

A law requiring tax stamps on property documents in India. Different states charge different rates of stamp duty based on property value.

Institutional Investors

Big organizations that buy property as investments, like pension funds, insurance companies, and real estate investment trusts. They typically focus on large commercial buildings or apartment complexes.

Inventory

All the properties available for sale or rent in a particular market. When inventory is low, prices tend to rise because there are more buyers than sellers.

J

Joint Agent

When multiple real estate agents work together to sell a property. They share the work and split the commission when the property sells.

Joint Ownership Agreement

A contract spelling out the rights and responsibilities of multiple owners of the same property. These agreements prevent misunderstandings about who pays for repairs or when the property can be sold.

K

Khata

A document in some parts of India that shows you've paid property taxes. Having a valid Khata makes it easier to get utility connections and complete property sales.

Kick-Out Clause

A part of a sales contract that lets sellers accept another offer if it's better. This helps sellers avoid being stuck in a contract if someone offers more money.

Knee Wall

A short wall, usually less than three feet tall, that supports roof rafters. These walls are common in attics and help create more usable space.

L

Land Tax

A tax on the value of land, paid by property owners. This tax funds local government services and infrastructure.

Landlord

The person who owns property and rents it to tenants. Landlords are responsible for major repairs and maintaining the property in a livable condition.

Lease

A contract giving someone the right to use property for a specific time period. Residential leases usually last one year, while commercial leases often run for 3-10 years.

Leasehold

When you own a building but not the land it sits on. Instead, you rent the land for a set period, which could be 99 years or more. At the end of the lease, ownership returns to the landowner.

Load Bearing

Walls or columns that support the weight of the building above them. You can't remove these without adding other supports, or the building might collapse.

M

Maintenance Charges

Regular fees paid in apartments or planned communities for upkeep of shared areas. These fees cover things like gardening, security guards, and swimming pool maintenance.

Market Value

What a property would likely sell for if both buyer and seller know the market and aren't under pressure. Real estate agents determine this by looking at recent sales of similar properties nearby.

Mid-Rise

A building with 4-8 floors, though in city centers this might mean up to 25 floors. These buildings offer more density than houses but aren't as imposing as skyscrapers.

Mixed-Use Development

Projects combining different types of spaces, like shops on the ground floor with apartments above. These developments create vibrant neighborhoods where people can live, work, and shop without long commutes.

N

Negotiation

The back-and-forth discussion between buyers and sellers to reach an agreement. Good negotiations find solutions that work for both sides rather than just trying to "win."

Net Present Value Method

A way to analyze investments by figuring out what future profits are worth today. This helps investors compare properties with different income patterns.

Net Worth

Everything you own minus everything you owe. Lenders look at net worth when deciding whether to approve loans.

No Objection Certificate (NOC)

An official document saying authorities approve of a construction project. You might need NOCs from several different government departments before building.

Nominee

Someone appointed to act for another person. In property matters, nominees might temporarily hold title for legal or tax reasons.

Mortgage

A loan used to buy property, with the property itself serving as security. If you don't make payments, the lender can take the property.

Mutation

Updating government records after a property changes hands. This ensures tax bills go to the right person.

O

Occupancy Certificate (OC)

An official paper saying a new building is safe to live in. You need this certificate before moving in, and utility companies often require it before connecting services.

Open Space

Land left undeveloped within a community for parks, playgrounds, or natural areas. Many cities require developers to include open space in new projects.

Operating Cost Escalation

A clause in commercial leases that allows rent to increase based on rising building expenses or inflation. This protects landlords from losing money as costs go up.

P

Patwari

A government worker who keeps land records in rural parts of India. These officials track who owns what land and collect land taxes.

Possession Linked Plan

A payment system where you pay for your property in a few large chunks, with the final payment due when you get the keys. This typically involves 2-4 payments rather than monthly payments.

Pre-EMI

When you only pay interest on your loan during construction, with full payments starting after you move in. This makes it easier to handle payments while you're still paying rent elsewhere.

Precast Technology

A building method where parts are made in factories and assembled at the construction site. This approach is faster than traditional building and often results in better quality.

Preferred Location Charges

Extra costs for apartments with better positions, like corner units, higher floors, or units facing parks. These desirable locations command premium prices.

Prelaunch

When properties are offered for sale before the official launch, usually at lower prices. While cheaper, these early offerings come with more risk since plans might change.

Preleased

Commercial space that already has tenants signed up before construction is finished. Investors like preleased properties because they start earning income immediately.

Private Sale

Selling property without a real estate agent. While this saves commission fees, sellers handle all marketing, paperwork, and negotiations themselves.

Public Housing

Government-owned homes rented to low-income families at reduced rates. These programs help ensure everyone has access to affordable housing.

Pugree

An Indian term for the security deposit paid to landlords before moving in. This deposit is returned when you move out, assuming you haven't damaged the property.

Q

Qualified Covenant

A legal restriction on property use that includes exceptions under certain conditions. Unlike absolute restrictions, qualified covenants allow flexibility in special circumstances.

R

Realtor

A real estate agent who belongs to the National Association of Realtors and follows its code of ethics. Not all real estate agents are Realtors.

Registration

Recording property sales with government authorities to make them legally binding. Unregistered sales might not hold up in court if disputes arise.

REIT (Real Estate Investment Trust)

A company that owns income-producing real estate and sells shares to the public. REITs let people invest in large-scale property without buying entire buildings themselves.

Rent Act(s)

Laws protecting the rights of tenants and landlords. These regulations prevent unfair evictions and ensure decent living conditions.

Repo Rate

The interest rate central banks charge commercial banks for short-term loans. When this rate changes, mortgage rates often follow suit.

Requisitions On Title

Questions from potential buyers about property ownership history. These inquiries help uncover any problems with the title before purchase.

S

Sale Deed

The main legal document transferring property ownership. Both buyer and seller must sign this document in front of witnesses, and it must be registered with government authorities.

Site Plan

A drawing showing where buildings and other features are located on a piece of land. Site plans include details like driveways, utilities, and property boundaries.

Soft Launch

Limited property release to select buyers before the main launch. Developers use soft launches to test market reaction and adjust prices accordingly.

Stamp Duty

A tax paid when registering property documents. Rates vary by location and property value, with some places offering discounts for women or first-time buyers.

Stilt Parking

Building design where the ground floor is open for parking, with living spaces on upper floors. This arrangement maximizes land use while providing covered parking.

Strata Title

An ownership system for apartments where you own your unit plus a share of common areas. Owners collectively make decisions about building management through an owners association.

T

Tax Base

The total value of all taxable property in an area. A larger tax base lets local governments fund services without raising tax rates.

Tenancy

The legal right to live in a property based on a lease or rental agreement. Different types include fixed-term leases or month-to-month arrangements. Each type offers different levels of stability and flexibility for both landlords and tenants.

Title Deed

The document proving you own a property. A clear title deed shows ownership history without any legal problems. Before buying property, it's important to check that the title deed is "clean" - meaning no one else can claim ownership.

Town And Country Planning

Government framework balancing development needs with environmental protection across both urban and rural areas. These plans guide land use decisions for years to come and help prevent uncontrolled sprawl.

Trustee

Someone who manages property for someone else's benefit. Trustees must follow strict rules and always act in the best interests of the beneficiaries. Many family estates use trustees to manage property for younger family members.

U

Under-Valuation

Reporting a lower property value than what was actually paid to reduce taxes. This practice is illegal in most places and can result in penalties. Authorities are increasingly using data analysis to catch cases of under-valuation.

Underconstruction Property

Real estate still being built. These properties usually cost less than finished ones, but buyers must wait longer to move in. Buying underconstruction properties involves more risk but can offer better returns if the area develops well.

Unilateral Contract

An agreement where only one side makes a promise. For example, a seller promises to sell their house to whoever brings them an acceptable offer first. This type of contract is common in real estate listings.

Urban Land Ceiling And Regulation Act (ULCRA)

An Indian law limiting how much urban land one person can own. This was meant to prevent land hoarding and reduce overcrowding. While repealed in many states, its effects still influence urban development in some areas.

Utilities

Essential services like electricity, water, gas, and internet. Access to good utilities greatly affects property value and livability. When buying rural property, always check what utilities are available as some may not have city services.

V

Vaastu Shastra

Traditional Indian building principles based on directing energy flows. Many buyers in India prefer homes designed according to these ancient rules. Common Vaastu principles include specific placements for kitchens, bedrooms, and entrances.

Valuation

Professional assessment of what a property is worth. Valuers use different methods including comparing similar properties, calculating potential income, or estimating replacement costs. Banks require valuations before approving mortgages.

Villa

A luxurious single-family home, often in a planned community with shared amenities. Modern villas typically feature high-end finishes and private outdoor spaces. These homes usually offer more privacy than apartments but with community benefits.

Vitrified Tiles

Dense floor tiles that absorb very little water, making them stain-resistant. These durable tiles are popular in new construction because they're easy to clean and last a long time. They cost more than ceramic tiles but require less maintenance.

W

Warehouse

A building for storing goods, with features like loading docks and high ceilings. Modern warehouses often include climate control and advanced security systems. With the rise of e-commerce, warehouse space has become increasingly valuable.

Working Drawings

Detailed plans showing exactly how to build a project. These technical documents guide construction workers through every step of the building process. They include measurements, materials, and specific construction techniques.

Written Down Value

The remaining value of something after accounting for wear and tear each year. This concept is important for tax purposes when claiming depreciation. It represents how much of the original investment value remains on the books.

X

X Mark

A signature substitute for people who can't write their name. For property documents, an X mark must be witnessed by others to be legally valid. This traditional practice ensures everyone can participate in property transactions regardless of literacy.

Xystus

A garden path lined with trees. In modern landscaping, these structured walkways guide people through outdoor spaces while creating visual interest. Luxury properties often feature xystus-style walkways as a design element.

Y

Yield

The return on your property investment, shown as a percentage of what you paid. Investors compare yields between different properties to find the best options. A property that costs $200,000 and generates $20,000 in annual rent (after expenses) has a 10% yield.

Z

Zoning

Rules about how land can be used in different areas. Zoning laws determine whether you can build homes, shops, or factories in specific locations. Before buying property, check its zoning to ensure your planned use is allowed.

Zoning Ordinance

The legal framework establishing what can be built where. These rules control building height, density, and allowed activities to ensure compatible neighboring uses. Zoning ordinances protect property values by preventing incompatible development.

Frequently Asked Questions

What's the difference between carpet area, built-up area, and super built-up area?
Carpet area is the actual usable floor space inside your walls. Built-up area includes carpet area plus wall thickness. Super built-up area adds a share of common areas like lobbies and staircases. Always ask for the carpet area when buying property as it shows the true living space you're getting.

What documents should I check before buying property?
You should check the title deed, encumbrance certificate, approved building plan, occupancy certificate, and property tax receipts. For new developments, also check builder approvals and NOCs from relevant authorities. These documents confirm the property is legally sound.

What is the difference between freehold and leasehold property?
With freehold property, you own both the building and land permanently. With leasehold, you own the building but rent the land for a fixed period (often 99 years). Freehold properties typically have higher values and fewer restrictions on what you can do with them.

How is property tax calculated?
Property tax is usually based on the assessed value of your property, not the market value. Each local government has its own formula, often considering factors like location, size, age of building, and usage (residential/commercial). Tax rates vary significantly between different cities and towns.

What is an EMI?
EMI stands for Equated Monthly Installment - the fixed amount you pay each month toward your home loan. It includes both principal and interest. Early in your loan term, most of your EMI goes toward interest, while later payments reduce the principal more quickly.

What are closing costs?
Closing costs are the additional expenses you pay when finalizing a property purchase. These typically include loan fees, property inspection, title insurance, registration fees, stamp duty, and legal fees. Budget about 2-5% of the purchase price for these costs.

What is a home inspection and why is it important?
A home inspection is a thorough check of a property's condition by a qualified professional. They examine structural elements, plumbing, electrical systems, and look for pest problems or water damage. Getting an inspection before buying can save you from expensive surprises later.

What is a housing society?
A housing society is an organization formed by apartment owners to maintain common areas, collect maintenance fees, and establish community rules. In many countries, membership is automatic when you buy a unit in the building. Housing societies often have elected management committees.

What is a mortgage pre-approval?
A mortgage pre-approval is a lender's statement showing how much they're willing to loan you based on your financial situation. Getting pre-approved before house hunting helps you know your budget and shows sellers you're a serious buyer who can secure financing.

What's the difference between a real estate agent, broker, and Realtor?
A real estate agent is licensed to help people buy and sell property. A broker has additional education and can run their own brokerage and employ agents. A Realtor is a member of the National Association of Realtors who follows a specific code of ethics.

What is escrow?
Escrow is when a neutral third party holds money or documents during a real estate transaction. For example, your earnest money deposit might be held in escrow until closing. Escrow protects both buyers and sellers by ensuring neither party can access the funds until all conditions are met.

What is appreciation and depreciation in real estate?
Appreciation is when property values increase over time, while depreciation is when they decrease. Appreciation can happen due to neighborhood improvements, market demand, or inflation. Depreciation might occur because of property deterioration, neighborhood decline, or economic downturns.

What is a foreclosure?
Foreclosure happens when a homeowner fails to make mortgage payments and the lender takes possession of the property. The lender then typically sells the property to recover the loan balance. Foreclosed properties sometimes sell below market value but may require repairs or have legal complications.

What is a rental yield?
Rental yield is the annual rental income as a percentage of the property's value. For example, if a $300,000 property generates $18,000 in annual rent, the gross rental yield is 6%. Investors use this figure to compare different investment properties and assess potential returns.

How do I calculate the total cost of buying a property?
Add the purchase price, stamp duty, registration fees, loan fees, legal costs, and broker commission (if applicable). Also consider immediate repairs or renovations needed. For apartments, factor in advance maintenance fees. This total figure is your true cost of ownership.

This glossary includes 88 important real estate terms to help you understand property transactions.