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Real Estate Glossary

88 plain-language definitions — legal terms, investment/finance terms, property types, and Jaipur/Rajasthan-specific land terms. Search, filter by category, or browse A-Z.

A

Agreement to Sell Legal

A contract in which a seller agrees to sell and a buyer agrees to buy a property on agreed terms, but which does not by itself transfer ownership — that happens on registration of the sale deed.

Allotment Letter Legal

A formal letter from a developer confirming a specific unit/plot has been allotted to a buyer, typically issued after the booking amount is paid and before the full builder-buyer agreement is signed.

Amortization Investment

The process of gradually paying off a loan through scheduled payments (EMIs) that cover both principal and interest, with the interest-to-principal ratio shifting over the loan's tenure.

B

Bigha Local & Regional

A traditional Indian land measurement unit still commonly used in Rajasthan for larger land parcels (like farmhouse plots), particularly in revenue records — the exact area it represents varies by region and historical convention, so always confirm the specific conversion (to sq.yd. or sq.m.) being used in a given transaction rather than assuming a fixed standard value.

Biswa Local & Regional

A smaller traditional land unit, typically a fraction of a Bigha, used in parts of North India including Rajasthan for land measurement in revenue records.

Booking Amount / Token Amount Investment

An initial, typically small payment made to reserve a unit/plot before the full agreement is signed — usually the least refundable stage if a buyer later withdraws, so terms should be confirmed in writing before paying it.

Builder-Buyer Agreement Legal

The contract between a developer and a buyer for an under-construction property, covering price, payment schedule, specifications, and possession timeline. RERA mandates specific disclosures within this agreement.

Building Plan Approval Legal

Official sanction from the relevant development authority for a building's design and construction plan, confirming it complies with zoning, setback, and safety regulations.

Built-Up Area Property Types

Carpet area plus the area of the unit's own walls, typically around 10-15% more than carpet area.

C

CAGR (Compound Annual Growth Rate) Investment

The average annual growth rate of an investment over a specified period, assuming growth compounds each year — commonly used to describe historical property price appreciation.

CAM (Common Area Maintenance) Investment

Charges specifically for the upkeep of shared/common spaces in a development — lobbies, gardens, corridors, shared amenities — sometimes itemized separately from overall maintenance charges.

Capital Appreciation Investment

The increase in a property's market value over time, separate from any rental income it generates.

Capital Gains Tax Investment

Tax on the profit made from selling a property, split into Short-Term Capital Gains (STCG, for properties held under the specified holding period) and Long-Term Capital Gains (LTCG, held longer), taxed at different rates with different available exemptions.

Carpet Area Property Types

The actual usable floor area within a unit's walls, excluding wall thickness, balconies, and common areas — the most precise measure of the space you actually get, and the one RERA requires developers to disclose alongside built-up/super built-up figures.

Circle Rate / DLC Rate Legal

The government-notified minimum value per unit area at which a property transaction can be registered in a given area — in Rajasthan referred to as the DLC (District Level Committee) rate. Stamp duty is calculated on the higher of actual transaction value or this rate.

Clubhouse Property Types

A shared amenity building within a gated development or township, typically housing facilities like a pool, gym, function hall, and lounge areas for residents.

Completion Certificate (CC) Legal

A certificate issued by the local municipal/development authority confirming a building was constructed as per the sanctioned plan and is complete.

Construction-Linked Plan (CLP) Investment

A payment schedule for under-construction properties where installments are due at specific construction milestones (foundation, slab completion, etc.) rather than all at once or purely time-based.

Conveyance Deed Legal

A legal document transferring property rights from one party to another — often used interchangeably with 'sale deed,' though conveyance can also cover other forms of transfer (gift, exchange).

Corpus Fund Investment

A one-time charge collected upfront to fund long-term shared infrastructure and maintenance obligations for a development, separate from ongoing periodic maintenance charges.

D

Defect Liability Period Property Types

A period after possession (commonly 5 years under RERA) during which the developer is obligated to rectify structural defects or other quality issues at no cost to the buyer.

DLC Rate Local & Regional

District Level Committee rate — Rajasthan's specific term for the government-notified minimum property valuation (circle rate) used to calculate stamp duty, set and revised periodically by district-level committees.

Down Payment Investment

The portion of a property's price paid upfront by the buyer, not covered by the home loan — typically the gap between the property value and the bank's loan-to-value ratio, plus any charges the loan doesn't cover.

Duplex Property Types

A single residential unit spanning two floors, internally connected by a private staircase.

E

EMI (Equated Monthly Installment) Investment

The fixed monthly payment amount for a loan, covering both principal and interest, calculated so the loan is fully repaid by the end of its tenure.

Encumbrance Certificate (EC) Legal

An official record, issued by the Sub-Registrar's office, listing all registered transactions (sales, mortgages, liens) on a property over a chosen period — used to confirm a property is free of undisclosed debt or dispute.

Escrow Account Investment

A separate bank account, mandated for RERA-registered projects, where a fixed percentage (70% under the standard RERA rule) of funds collected from buyers must be deposited and used only for that project's construction and land costs.

F

Farmhouse Property Types

In the Jaipur/Rajasthan market, typically a larger plot (often 1,000+ sq.yd.) intended for a low-density residence with open land, gardens, or agricultural-style use — distinct in scale and purpose from a standard residential plot. Land-use classification and any NRI purchase restrictions should always be confirmed for the specific parcel.

FEMA Legal

Foreign Exchange Management Act — the law governing cross-border financial transactions in India, including the rules that determine what property NRIs and foreign nationals can and cannot purchase.

Fixed Interest Rate Investment

A home loan interest rate that stays constant for the loan's tenure (or a fixed period), giving predictable EMIs regardless of market rate changes.

Floating Interest Rate Investment

A home loan interest rate that varies over time based on a benchmark rate (like the repo rate), meaning EMIs can rise or fall during the loan tenure.

Freehold Property Legal

Property where the owner holds full, permanent ownership of both the structure and the underlying land, with no time-bound lease obligation.

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

The ratio of a building's total built-up area to the plot area it sits on, capped by local development regulations — a key determinant of how much a developer can legally construct on a given plot.

G

Gated Community Property Types

A residential development enclosed by a boundary wall/fence with controlled entry, typically including shared security, common amenities, and sometimes a residents' association.

Gift Deed Legal

A legal document used to transfer property ownership without monetary consideration, typically between family members, which still requires registration and (in most states) attracts stamp duty, often at a concessional rate for close relatives.

GST on Real Estate Investment

Goods and Services Tax applicable on the purchase of under-construction property (not on ready-to-move property with a Completion Certificate, or on land/plot sales in most cases). Rates and input tax credit rules have changed over time — always confirm the current applicable rate.

I

Indexation Investment

An adjustment to a property's purchase cost for inflation (using a government-published index) before calculating long-term capital gains tax, which reduces the taxable gain.

IRR (Internal Rate of Return) Investment

A more precise investment-return metric than simple ROI, accounting for the specific timing of cash flows (rent, appreciation, costs) over the holding period — useful for comparing investments with different payment schedules.

J

JDA Legal

Jaipur Development Authority — the government body responsible for approving land-use, layouts, and building plans within Jaipur's development jurisdiction under the city's master plan.

Joint Development Agreement (JDA - agreement) Legal

A contract between a landowner and a developer to jointly develop a property, typically compensating the landowner with a share of constructed units or revenue instead of an outright land sale. (Not to be confused with the Jaipur Development Authority, also abbreviated JDA.)

K

Khata Legal

A municipal/revenue record establishing a property's assessment for tax purposes and, in many states, evidence of ownership recognized by local authorities. Terminology and process vary by state.

L

Land Use Conversion Legal

The formal process of changing a parcel of land's designated use (e.g., agricultural to residential) under a development authority's master plan, required before certain kinds of development can proceed legally.

Leasehold Property Legal

Property where the buyer owns the structure but holds the underlying land on a long-term lease (often 30-99 years) from the actual landowner (frequently a government authority), after which lease renewal or other terms apply.

Loading Factor Property Types

The percentage difference between super built-up area and carpet area — a higher loading factor means you're paying for more shared/common space relative to your actual usable area.

Loan-to-Value (LTV) Ratio Investment

The percentage of a property's value that a bank is willing to finance through a loan; the buyer funds the remaining percentage as a down payment. RBI guidelines cap LTV ratios based on loan amount slabs.

M

Maintenance Charges Investment

Recurring charges (usually monthly or annual) paid by owners to cover upkeep of common areas, security, and shared facilities after possession.

Master Plan Legal

A development authority's long-term land-use and zoning blueprint for a city or region, which governs what kind of development is permitted where.

Mutation Legal

The process of updating land revenue or municipal records to reflect a change of ownership after a sale, distinct from registration itself. Usually requires a separate application after the sale deed is registered.

N

Nagar Nigam Local & Regional

The municipal corporation responsible for civic administration (property tax, sanitation, local infrastructure) within Jaipur's municipal limits, distinct from JDA's development/planning role.

No Objection Certificate (NOC) Legal

A document from a relevant authority or party (society, bank, development authority) confirming they have no objection to a specific transaction or construction proceeding.

O

Occupancy Certificate (OC) Legal

A certificate confirming a building is fit for occupation, issued after the completion certificate and required before residents can legally move in.

P

Patta Legal

In Rajasthan, a document issued (typically by JDA or the relevant municipal body) confirming an allottee's right over a specific plot within an approved layout — particularly relevant for plotted developments.

Penthouse Property Types

A residential unit on the top floor of a building, often with a larger footprint, terrace access, and premium pricing relative to other units in the same building.

PLC (Preferential Location Charge) Investment

An additional charge for a unit/plot with a specific locational advantage — corner plot, park-facing, wider road frontage — priced on top of the base rate.

Plotted Development Property Types

A development where land is divided into individual plots sold to buyers who then construct (or don't) their own structures, as opposed to a built-up apartment or villa project.

Possession Date Property Types

The date, specified in the builder-buyer agreement, by which the developer commits to handing over physical possession of the completed unit — RERA requires this to be a specific, disclosed date, with defined consequences for delay.

Possession Letter Legal

A formal document issued by the developer confirming handover of physical possession of a unit to the buyer.

Possession-Linked Plan Investment

A payment plan where a large portion of the price is due only at possession, shifting more of the payment timeline risk to the developer compared to a construction-linked plan.

Power of Attorney (POA) Legal

A legal document authorizing one person to act on another's behalf for specified matters — commonly used by NRIs or out-of-city buyers to handle site visits and paperwork remotely.

Pre-EMI Investment

A payment covering only the interest on the disbursed loan amount during an under-construction property's construction period, before full EMIs (principal + interest) begin after possession or full disbursement.

Pre-Launch / Soft Launch Investment

Early sale of units before formal project launch or, in some cases, before full regulatory approvals are in place — carries meaningfully higher risk than booking after RERA registration and approvals are confirmed, and should be approached with extra caution.

R

RCC (Reinforced Cement Concrete) Property Types

A construction method combining concrete with steel reinforcement bars, used for structural strength — including earthquake resistance — in most modern residential construction.

Ready-to-Move Property Property Types

A completed property with a Completion/Occupancy Certificate, available for immediate possession, as opposed to an under-construction property still being built.

Registration Charges Legal

A separate fee, in addition to stamp duty, paid to register a property transaction with the Sub-Registrar's office, making the transfer legally recognized.

Rental Yield Investment

Annual rental income divided by the property's current value, expressed as a percentage — a measure of income return, separate from capital appreciation. 'Gross yield' ignores costs; 'net yield' subtracts expenses like maintenance and property tax.

RERA Legal

Real Estate Regulatory Authority — the state-level regulator (RajRERA in Rajasthan) that developers must register projects with before marketing or selling units, and which mandates escrow of buyer funds and standardized project disclosures.

RIICO Local & Regional

Rajasthan State Industrial Development and Investment Corporation — the state body responsible for developing and allotting industrial land and infrastructure across Rajasthan, relevant context for industrial-belt-adjacent residential/farmhouse locations.

Ring Road (Jaipur) Local & Regional

Jaipur's peripheral ring road infrastructure project, intended to improve connectivity around the city's outer areas — a significant factor in the growth trajectory of several outer Jaipur micro-markets.

ROI (Return on Investment) Investment

A general measure of profitability, typically calculated as (gain from investment − cost of investment) ÷ cost of investment, expressed as a percentage. In real estate, this can include both rental income and capital appreciation.

Row House Property Types

An individual house that shares one or more walls with adjacent houses in a row, typically with its own entrance and small private outdoor space, distinct from an independent standalone villa.

RUIDP Local & Regional

Rajasthan Urban Infrastructure Development Project — a state government initiative focused on urban infrastructure improvement (water supply, sewerage, roads) across Rajasthan's cities, including Jaipur.

S

Sale Deed Legal

The primary legal document that transfers ownership of a property from seller to buyer, executed and registered at the Sub-Registrar's office.

Sample Flat / Show Flat Property Types

A fully finished, furnished unit built by the developer to showcase the design and finishes of a project, used for marketing purposes before other units are complete.

Section 54 / 54F Investment

Provisions of the Income Tax Act allowing exemption from long-term capital gains tax if the sale proceeds (or gains) are reinvested in another residential property within specified timelines — a genuinely complex area that should be planned with a CA, not assumed.

Setback Legal

The mandatory minimum distance a building must be constructed from the boundary of its plot, road, or neighboring structures, as required by local building regulations.

Sinking Fund Investment

A reserve fund, built up over time from owner contributions, set aside specifically for major future repairs or replacements (like roof work or lift replacement) rather than day-to-day maintenance.

Sq. Yard (Gaj) Local & Regional

A common unit for quoting plot sizes in Rajasthan real estate, sometimes referred to locally as 'Gaj' — equal to 9 sq.ft.

Stamp Duty Legal

A state government tax levied on property transaction documents (primarily the sale deed) at the time of registration, calculated as a percentage of the property's value or the government-assessed circle rate, whichever is higher.

Studio Apartment Property Types

A compact residential unit combining the living, sleeping, and kitchen areas into a single open room, typically with a separate bathroom — common in rental-focused, furnished developments.

Subvention Scheme Investment

A payment scheme where the developer (or a tripartite arrangement with a bank) covers the buyer's EMI or interest burden until possession, after which the buyer's own payment obligation begins. These schemes carry specific risks worth understanding before opting in.

Super Built-Up Area Property Types

Built-up area plus a proportional share of common areas (lobbies, staircases, shared amenities) — typically the largest of the three area figures and the one often used for pricing, sometimes making direct price-per-sq.ft. comparisons across projects misleading unless you check the loading factor.

T

TDS on Property Purchase Investment

Tax Deducted at Source — for property transactions above a specified value, the buyer is required to deduct a percentage of the payment and deposit it with the government on the seller's behalf, at a higher rate for NRI sellers than resident sellers.

Title Deed Legal

A general term for the document(s) establishing legal ownership of a property; a sale deed is one form of title deed.

Township Property Types

A large-scale, typically self-contained development combining residential plots/units with common infrastructure and amenities, sometimes including commercial or institutional space.

U

Under-Construction Property Property Types

A property still being built at the time of sale, typically sold on a construction-linked or time-linked payment plan with a projected (not guaranteed) possession date.

V

Vastu Compliance Property Types

Adherence to Vastu Shastra, a traditional Indian architectural system governing the orientation and layout of spaces. Compliance criteria can vary between consultants/traditions, so specific claims should be checked against your own requirements.

Z

Zoning Legal

The classification of land within a master plan for specific uses — residential, commercial, industrial, agricultural — which determines what can legally be built on it.

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