Glossary
The vocabulary of buying a home in Bangalore.
From RERA to carpet area to PoA, defined in one sentence each, with the practical nuance.
A
- Allotment letter
- A pre-Sale-Agreement document from the developer confirming the unit you've been allotted. Not legally equivalent to a Sale Agreement, don't rely on it alone.
- Approved layout
- A residential layout that has been approved by the relevant planning authority (BDA, BMRDA, or local body). Approved layouts are eligible for loans; unapproved layouts typically aren't.
B
- BBMP
- Bruhat Bengaluru Mahanagara Palike, Bangalore's municipal corporation, responsible for civic infrastructure and property-tax assessment within city limits.
- BDA
- Bangalore Development Authority, the state body that approves layouts, develops sites, and oversees urban planning in Bangalore.
- BMRDA
- Bangalore Metropolitan Region Development Authority, covers the metropolitan region beyond BBMP, often including Devanahalli, Anekal, Hoskote.
- Brahmasthan
- The central area of a building or unit, considered an energy core in Vastu. Should be kept open and unobstructed if Vastu is a buying constraint.
- Built-up area
- The area inside a unit including walls but excluding common areas. Typically 10-15% larger than carpet area.
C
- Carpet area
- The usable area inside the unit walls, measured wall-to-wall. RERA mandates carpet-area disclosure. Pricing per carpet sqft is the most honest comparison.
- Channel partner
- A licensed real-estate advisor with a formal partnership agreement with a developer. Channel partners are paid by the developer, not the buyer.
- Co-applicant
- A second borrower on a home loan, usually a spouse or major child. Improves loan eligibility and may double the available tax deductions if also a co-owner.
- Conveyance deed
- The legal document that transfers ownership of land or building from seller to buyer. Synonymous with Sale Deed in most Indian contexts.
- Corpus fund
- A one-time amount collected at possession by the apartment association for major future repairs (lifts, sewage treatment, painting). Typically ₹50,000-₹3L.
E
- Encumbrance certificate (EC)
- A Karnataka government document listing all transactions registered against a property over a specified period. A clean EC is essential before purchase.
- EMI
- Equated Monthly Instalment, a fixed monthly payment to your lender, comprising part principal and part interest. Calculated on the reducing-balance method.
- Escrow account
- A bank account into which 70% of the project's collected funds must be deposited under RERA, used exclusively for project construction.
F
- Floor rise
- A per-sqft premium charged for higher floors. Typically ₹50-150 per sqft per floor above the base. Negotiable in many projects.
G
- GST on real estate
- 5% (without input tax credit) on under-construction residential sales as of 2026. Not applicable to ready-to-move homes with Occupancy Certificate.
- Guidance value
- The minimum property value set by the Karnataka government for a locality. Stamp duty is computed on the higher of guidance value or transaction value.
K
- Khata
- A BBMP property register entry. Khata A is the clean municipal record; Khata B is interim. Khata A is preferred for loans and resale.
L
- LTV
- Loan-to-Value ratio, the percentage of property value a lender will finance. Typically 75-80% in Bangalore, up to 85% for first-home buyers.
M
- MCLR / EBLR
- Marginal Cost of Lending Rate (internal bank benchmark) vs External Benchmark Lending Rate (usually RBI repo). EBLR transmits rate cuts faster and is generally preferable for new loans.
N
- NRE / NRO / FCNR
- NRI bank account types: Non-Resident External (₹ repatriable), Non-Resident Ordinary (₹ non-repatriable), Foreign Currency Non-Resident (FX). Used for funding property purchases by NRIs.
O
- OC (Occupancy Certificate)
- Issued by the planning authority confirming a building is safe to occupy and built per sanctioned plan. Never move in before OC.
P
- PoA (Power of Attorney)
- A legal authority granted to another person to act on your behalf. Must be registered (not just notarised) to be enforceable for property transactions.
- Possession date
- The committed date by which the developer will hand over the keys. RERA penalises delays beyond the registered possession date.
- Pre-launch
- Sales before official launch / RERA registration. Higher discount but higher risk; avoid pre-launch from new developers.
R
- RERA
- Real Estate (Regulation and Development) Act 2016, mandates project registration, disclosure standards, and an escrow mechanism. Verify every project's RERA on the Karnataka RERA portal.
S
- Sale Agreement
- The contract between buyer and developer covering price, payment plan, possession date, refund terms, and amenities. Executed on stamp paper; usually not separately registered.
- Sale Deed
- The final document that transfers ownership. Registered with the sub-registrar's office. Stamp duty + registration are paid at this stage.
- Sanctioned plan
- The architectural plan formally approved by the planning authority. Must match what is being built. Deviations from sanctioned plan are a serious legal risk.
- Section 24(b)
- Income Tax provision allowing up to ₹2L deduction on home-loan interest for a self-occupied property. Uncapped for let-out properties.
- Section 80C
- Income Tax provision allowing up to ₹1.5L deduction on home-loan principal repayment plus stamp duty and registration in the year of purchase.
- Stamp duty
- A state tax on property transfer. Karnataka: 5% above ₹45L, 3% between ₹21-45L, 2% below ₹21L. Plus 1% registration.
- Super built-up area
- Built-up area plus a proportional share of common areas (lobby, lifts, clubhouse). 25-35% larger than carpet area. Per-sqft pricing on super built-up is misleading; compare on carpet.
T
- TDR (Transferable Development Rights)
- Compensation given by the government when a property owner surrenders land for public use, in the form of rights to build additional floor space elsewhere. Relevant for some Bangalore developments.
- Title chain
- The historical record of land ownership transfers. A clean 30-year title chain is the minimum bar before purchase.
U
- Under-construction
- A project where construction is ongoing and possession is in the future. Carries delay risk; balanced by typical 10-15% price advantage over ready inventory.
V
- Vastu
- A traditional system of architectural guidelines from Hindu tradition. Many Indian buyers apply Vastu as a soft constraint when shortlisting.
Z
- Zoning
- Land-use classification (residential, commercial, mixed-use) by the planning authority. Buying residential property on a non-residential zoned plot is a major risk.