Glossary
Property words, in plain language
Every term you will hear between your first site visit and the day you get your keys, explained the way a friend who knows property would.
B
C
- Carpet AreaCarpet area is the usable floor area inside a flat’s walls. Under RERA, homes must be sold by carpet area, so it is the fairest figure to compare.
- Completion Certificate (CC)A Completion Certificate (CC) records that a building was finished as per the approved plan. In Bengaluru “CC” can also mean the Commencement Certificate.
- Construction-Linked Plan (CLP)A construction-linked plan (CLP) is a payment schedule where you pay each instalment only when the building reaches a set stage, such as a slab.
- Corpus FundA corpus fund is a one-time deposit each owner pays at handover, held for the apartment’s long-term repairs and handed to the owners’ association.
D
- DC ConversionDC conversion is the Karnataka order that allows farmland to be used for homes or other non-farm purposes, issued under Section 95 of the Land Revenue Act.
- DisbursementDisbursement is the bank actually paying out your home loan, in one go for a ready flat or in stages for an under-construction one.
E
F
G
K
L
- LoadingLoading is the gap between a flat’s super built-up area and its carpet area, shown as a percentage. It tells you how much of the quoted area is not usable.
- LTV (Loan-to-Value)LTV is the home loan as a percentage of the home’s value. RBI caps it, so you always pay part of the price yourself as a down payment.
M
- Mother DeedA mother deed is the earlier document from which a property’s current ownership flows. It is the starting point of the title chain your lawyer checks.
- MutationMutation updates a government record, such as the khata or land record, to show the new owner after a sale. It follows ownership; it does not create it.
N
O
P
- PLC (Preferential Location Charge)PLC is an extra charge for a flat in a preferred position, such as a corner, a park view or a higher floor. It is added on top of the base price.
- Possession LetterA possession letter is the builder’s written offer or confirmation that you can take over your finished flat, with the date and the terms of handover.
- Pre-EMIPre-EMI is interest-only payment on the part of your home loan already disbursed, paid while the flat is being built and before full EMIs start.
R
S
- Sale Agreement (Agreement for Sale)A sale agreement is the written promise between you and the builder or seller to complete a sale later, on set terms. It does not transfer ownership.
- Sale DeedA sale deed is the registered document that transfers ownership of a home from the seller to you. It is the main proof that the flat is yours.
- Sanction LetterA sanction letter is your bank’s written approval of a home loan, stating the amount, rate, tenure and conditions. It is a yes, not yet a payment.
- Snag ListA snag list is your written list of defects found in a new flat at handover, from cracked tiles to leaking taps, for the builder to fix.
- Stamp DutyStamp duty is the state tax you pay to register a property document. In Karnataka it is charged on the higher of your price and the guidance value.
- Super Built-Up AreaSuper built-up area is your flat’s built-up area plus a share of common spaces such as lobbies, lifts and stairs. It is always bigger than carpet area.
T
- TDS under Section 194-IAUnder Section 194-IA, a buyer deducts 1% TDS from the price of a property worth ₹50 lakh or more and pays it to the government on the seller’s behalf.
- Title DeedA title deed shows who owns a property and how they came to own it. A “clear title” means the chain of ownership has no gaps, loans or claims.
- Tripartite AgreementA tripartite agreement is a contract between you, the builder and your bank for an under-construction flat, setting how the loan is paid and secured.
These pages explain terms; they are not legal or tax advice. Rupee figures are illustrative examples only. For the steps in order, read the first-home guide, or put numbers to your plan with our calculators.
FAQ
About this glossary
Who is this glossary for?
For anyone buying a first home in Bengaluru who keeps meeting words like khata, EC or FOIR. Each page explains one term in plain language, with what to check.
Which property documents matter most for a flat?
Start with the title deeds, the encumbrance certificate, the RERA registration and the approvals. At handover, add the occupancy certificate and your registered sale deed.
Are the rupee figures on these pages real prices?
No. Every rupee figure is an illustrative example to show the arithmetic. Reeva prices are shared on request only.
Is this legal or tax advice?
No. The pages explain terms and point to the law or rule behind them. For your own purchase, speak to a property lawyer and a tax adviser.
How often are these pages updated?
We review them when a law, rate or rule they mention changes. Rates such as stamp duty are set by the state, so always confirm the current figure with the sub-registrar.
Stuck on a word in your paperwork?
Ask the Reeva team. We will call back and explain it in plain words, with no pressure to buy.