Advance Money

Advance money is the deposit a buyer makes at the time of agreement of sale to the seller.


Amenities are extended facilities that a community offers to its residents. These include club house,play area, play school, multipurpose hall, power backup, RO water etc.


Amortization is the periodic payment of interest and principal amount over a scheduled term (ex: 18 and 20 years).

Amortization Schedule

An amortization schedule is the designation of periodic payments of principal and interest toward the principal to pay off a loan.

Apartment / Flat

A set of rooms for living in, usually on one floor of a large building is called apartment in USA and in Britain and India it is called Flat.


An appraisal is an evaluation of a property by either bank or independent appraiser on its price based on statistics of previous sales of similar properties in the area and a community.


An assessment is used to determine the value of a property for tax purposes, whenever there is a capital improvement on the property or after the property is handed over. The municipality takes comparable home sales and the price is determined to calculate property taxes.

Built Up Area

Built Up Area is the carpet area plus the depth of the walls, and balconies.

Buyer's Broker/Agent

A buyer's broker represents the buyer in purchase of a property. Normally the buyer's broker charges a fixed fee or a commission (1 or 2 percent ) after the transaction is completed.

Buyer's Costs

Before the registration, the buyer need to prepare agreement of sale, fetch EC, fetch link documents and prepare sale deed. There is a cost of approximately Rs.10000 (cost varies based on the case) for providing the service by the lawyer.


By-Laws are a set of rules that an residential or commercial commmunities makes and by which it operates and regulates elections, define executive members duties and responsibilities. By-Laws also enforces members in the community to follow. Any change in the By-Laws must have a mandate of certain percent of residents.

Capital Improvement

Capital Improvement is an additional construction to the property which in turn adds value to the property.

Carpet Area

Carpet area is the net usable area within the four walls of the house.


Co-applicant is when more than one person applies for loan on the same application form for a given property.


Collateral is the property or other asset is put up in exhange for a loan. In case the borrower defaults on payments, the collateral will be taken by the bank.

Commercial Zones

Commercial zones are for retail stores, restaurants, hotels and other businesses.


The commission is the percentage on the total sale price you pay to the broker or agent for marketing and selling the property. For buyer, the commission is paid for the effort on showing the properties.

Commission Share

A commission share is the sharing of commissions between the layers of broker or agent in selling and buying the property. Generally, a broker or agent shares information of the property with other brokers or agents and when the transaction is completed, they split the commission.

Cooperative Society

A cooperative society is a community owned by a corporation in which each apartment is allocated shares of stock as well as a proprietary lease and the amount of shares owned is determined by the value and size of the apartment.


Co-ownership is when more than one person shares the legal ownership of the property.

Credit Score

CIBIL, a credit scoring company perdiodically collects and maintains records of individual's payments on borrowed loans and credit cards. These records are sent to CIBIL by member banks on a monthly basis. Generally, loans are approved for individuals whose score is greater than 750. A bank uses credit scores provided by CIBIL to evaluate and approve loan and credit cards.


A buyer, seller, tenant or landowner when fail to maintain the contract, he or she becomes the defaulter. (Ex. When you skip EMIs, you are basically defaulting on payments against the contract).


A triplex is an apartment or house with two levels.

Duplex Apartment

A duplex apartment consists of two floors.


Illegally entering on the property of another by either building a structure on the land or staying in the constructed property.

Encumbrance Certificate

The Encumbrance Certificate (EC) testifies that the property shows no mortgage or other encumbrance as on the date of purchase. In addition, the property is transferable and heritable, at the revenue and ULC dept.

Final HUDA Approval

A Final HUDA Approval is issued by HUDA after compliance of the development works as per the specifications. Till then no building permission can be given. For details check

Fixed Rate

A type of loan where the interest rate is fixed for the term of the loan. Good to lock when the interest are at the lowest.

Floating Rate

A type of loan where the interest rate is variable and gets adjusted according to the change in the index.

Floor Space Index (FSI)

Floor Space Index calculation is based on the actual ratio between the total built up area and the available plot area permitted by the local government for a specific locality. Generally, a higher FSI will have a higher built-up area.


A process where the bank tries to recover the unpaid loan amount from the buyer by selling the property on which the loan was availed.

Full Bath

A full bath is a bathroom that consists of a wash basin, toilet, and a shower.

Full Tank Level

A Full Tank Level is a boundary and buffer zone around the lake.This is maintained to ensure enough water is collected during monsoon season. This land is prohibited for any construction by local authorities.

Grace Period

A grace period is the number of days immediately after the scheduled date for the payment without any late fee.

Half Bath

A half bath is a bathroom that consists of a wash basin and a toilet.


The Hyderabad Metropolitan Development Authority (HMDA) was formed in 2008 in the erstwhile Andhra Pradesh. HMDA was formed by the merging of Hyderabad Urban Development Authority (HUDA), Hyderabad Airport Development Authority (HADA), Cyberabad Development Authority (CDA) and Buddha Poornima Project Authority (BPPA) for the purpose of planning, co-ordination, supervising, promoting and securing the planned development of the Hyderabad Metropolitan Region. It coordinates the development activities with the various local government bodies.

Home Equity Loan

A loan made against the equity of the property. You can avail the loan only after sufficient loan amount has been paid.


Hyderabad Urbaan Development Authority (HUDA) is the statutory authority was charged with the acquisition, planning and development of urban facilities and infrastructure throughout Telangana.


Banks generally wont disburse loan amount if you dont have home insurance. Home insurance covers your property against losses from fire, theft, bad weather and death of the borrower.

Interest Amount

Interest is what the bank charges for the money you borrowed. Interest rates are either floating or fixed.

Lease Agreement

A lease agreement binds both the property owner and the tenant for a period of one year or more with the set of instructions that cannot be change by either party without the mutual consent.

Link Documents

Link Documents are sale deeds of previous owners for the said property. These set of documents help link the property with all previous owners.

Liquidated Damages

Liquidated damages is paid as compensation for the breach of contract in terms of money.

Listing Partner

The listing partner represents the seller or buyer in the sale, rent or purchase of property.

Loan Approved

If the bank is convinced with your employment credentials, CIBIL report and the property appraisal process, the bank approves the loan in your name for a certain period of time. The approved loan have to be availed within the period or else it gets lapsed.

Loan Disbursement

Once the loan is sanctioned and offer letter is signed by the buyer, the loan amount is paid to the seller in one or more demand drafts by the bank. Generally, this happens on the day of property registration.

Loan Offer Letter

The loan offer letter will be issued by the bank after it is approved. It contains loan amount, duration of the loan, rate of interest, type of rate of interest and mode of payment. Once you sign on the agreement, you are committed for the loan and payment terms.


A monthly amount charged to residents as operating cost and maintenance of amenities. In some communities water is included in the maintenance amount.

Market Value

The market value of a property is an estimated price a buyer would pay to the seller given the market conditions.


A mortgage is actually made up of the collateral you used to secure the loan, your principal and interest payments, taxes and insurance.

Municipal Corporation

A municipal corporation is the local governing body of cities and districts. Few responsibilities are collecting property taxes, health care , building permission, roads and waste water treatment.


Rental / Lease agreements and agreement of sale, are generally notarized by a certified Notary Public to verify the authenticity of a signature.

Occupancy Certificate

Occupancy certificate is issued by the local muncipality after the building is completed or any improvements is made on the structure is completed, based on sanctioned building plan of the local municipality. If the builder fails to comply codes, ordinances and deviates from the sanctioned plan, the local muncipality might penalise builder for not following the order.


When a buyer accepts the price, and offer is made and then an agreement of sale is signed by both the parties.


A penthouse apartment is an apartment on the top floor with an open area on the terrace.

Per Square Foot Rate

Developers and builders sell the property based on the per square foot rate of the super built-up area. This is also called as Saleable Area.

Powder Room

A powder room is also referred to as a half-bath with only a toilet and a wash basin.

Pre Approval

As a first step, bank verifies the borrower's employment and credit history and then promise to give loan upto a certain amount.

Principal Amount

The principal amount is the sum of money borrowed to buy your property. To lower your monthly EMIs, you can put down a percentage (10% - 20%) of the propertys purchase price as a down payment.

Processing Fee

Some banks charge processing fee while submitting the home loan application form. The processing fee usually ranges from 0.25 percent to 0.50 percent of the total loan amount. This charge is for providing you services like year end statements and other documents related to your loan. However, you can negotiate with your bank on processing fee.

Property Tax

The tax collected by the local municipality on the ownership of a property.


Refinancing of a new loan at a lower rate of interest on an existing mortgaged property.

Registration Costs

The registration costs are the expenses incurred by the buyer in the purchase of property paid at the time of settlement. There is a percentage ( 5% - 6%) amount to be paid to the registrar office in the form of demand draft for transfer of ownership (registration).


The registration is when the transfer of ownership of a property from the seller to the buyer occurs according to the agreement of sale.


Unauthorised layouts can be regularised by paying fee to the local government. Once it is regularised, the landowners can apply for building construction, water and drainage connection.

Rental Agreement

A rental agreement is made by the property owner and the tenant on a month to month basis. For long term rentals, it is advised to make a lease agreement.

Studio Apartment

A flat or apartment containing of one large room with attached bath and in some cases there is a provision for kitchen.

Sublet / Sub Renting

A sublet is when the main lease holder decides to rent a portion of the apartment or the entire apartment to a sub-tenant.

Super Builtup Area

Super Built Up Area is the built up area plus common areas in proportion to your property. Common areas includes lifts, stairs, lobby etc.

Survey Number

Survey numbers are based on defined points on the surface of the earth of known location. A single survey consists of one or more acres of continous land.

Tentative HUDA approval

A Tentative layout is given by HUDA after due technical and ownership & ULC verification.The applicant is required to mortgage 25% of the plots to HUDA as a collateral for undertaking and completion of all layout development works and conditions. However, the applicant/developer can sell the plots in the remaining non-mortgaged area.


A triplex is an apartment or house with three levels.