Earnest Money
Agent Practice
Also called: Bayana, Advance Money
A deposit paid by a buyer to show serious intent and bind the seller, which the seller may keep if the buyer backs out without a valid reason, within reasonable limits. Typically paid on signing an agreement to sell.
Example & agent tip
Example: A buyer pays ₹2 lakh as earnest money on a ₹50 lakh resale flat. If he withdraws without reason, the seller may keep a reasonable part, but courts can refuse an unreasonable forfeiture.
Agent tip: Write the refund and forfeiture conditions in the agreement.
Related:
Agreement to Sell (ATS)
Token Amount
Easement
Legal
A right of one owner to use another's land for a specific purpose, such as a right of way, drainage or light and air.
Legal basis: Indian Easements Act, 1882.
Example & agent tip
Example: A house has a legal right of way through the neighbour's plot to reach the road.
Agent tip: Check on site for paths, pipes and other uses that may amount to easement rights.
Related:
Encumbrance
Quiet Enjoyment
Eco-Sensitive Zone (ESZ)
Approvals
Also called: ESZ
An area around a national park or wildlife sanctuary, notified by the Central Government, where certain activities are restricted or regulated to protect the protected area. Construction rules in an ESZ can be stricter than elsewhere.
Example & agent tip
Example: A resort plan near a sanctuary in Uttarakhand was held up until the ESZ rules for the area were checked.
Agent tip: Before buying land near forests or sanctuaries, check the ESZ notification for that protected area.
Related:
Environmental Clearance
Green Belt
Coastal Regulation Zone (CRZ)
Effect of Non-Registration
Legal
Also called: Section 49 Registration Act, Unregistered Document
A document that the law requires to be registered cannot normally be used to prove a transfer if it is not registered. An unregistered sale deed may be used only for a limited purpose, such as showing that possession was given.
Legal basis: Registration Act, 1908, Section 49.
Example & agent tip
Example: A buyer in Rewari has only an unregistered agreement for a plot. When the seller refuses to complete, the buyer finds that the paper cannot prove ownership.
Agent tip: Never rely on an unregistered paper as title. Insist on a registered sale deed.
Related:
Registration Act, 1908
Registration (Property)
Sale Deed
Part Performance
Efficiency Ratio
Measurement
Also called: Plate Efficiency
The share of a building's floor area that is usable inside units compared with the total built area, including lobbies, corridors and shafts. A higher ratio means less area lost to common spaces.
Example & agent tip
Example: Two towers in Mohali had similar built-up areas, but one gave buyers a higher carpet share because of a better layout.
Agent tip: Compare carpet area to saleable area across projects. It shows which layout wastes less of what you pay for.
Related:
Loading Factor
Carpet Area
Saleable Area
Efflorescence
Construction
A white powdery deposit on walls or concrete caused by salts carried out by water as it dries. It signals moisture in the wall and, if it keeps coming back, points to a leak or poor damp proofing.
Example & agent tip
Example: A ground floor owner in Mohali saw white patches on the bedroom wall every monsoon, which turned out to be a leaking external pipe.
Agent tip: Treat white patches as a clue to find the water source, not just something to repaint.
Related:
Dampness (Seepage)
Waterproofing
Damp Proof Course (DPC)
Electricity Connection
Construction
The permanent power supply to a unit or building from the distribution company. A new flat needs sanctioned load and meter.
Example & agent tip
Example: A builder hands over with only a temporary construction connection, which has to be replaced.
Agent tip: Ask whether the connection is permanent and in the owner's name.
Related:
Occupancy Certificate (OC)
Possession
Electricity Distribution Company (DISCOM)
Authorities
The state-run or private utility that supplies electricity to consumers in an area. Buyers apply to it for new connections, and a completion or occupancy certificate is usually needed for a permanent connection.
Example & agent tip
Example: A new buyer applies to the DISCOM for a meter, attaching the sale deed and the occupancy certificate.
Agent tip: Check electricity dues on resale properties. Many DISCOMs link dues to the property.
Related:
Electricity Connection
Occupancy Certificate (OC)
No Dues Certificate
Electronic City
General & Places
A large technology and industrial area south of Bengaluru, developed by KEONICS in the 1970s-80s. It has offices, apartments and layouts, and an elevated expressway links it to the city.
Example & agent tip
Example: A fresher chooses a paying guest room in Electronic City for its walk to the office and meals.
Agent tip: When buying around Electronic City, check whether the property sits in the Greater Bengaluru Authority area (formerly BBMP) or a panchayat jurisdiction, because tax and khata differ.
Related:
Khata (Karnataka)
BBMP
BMRDA
RERA Karnataka
EMI (Equated Monthly Instalment)
Finance
Also called: Equated Monthly Installment
The fixed amount a borrower pays each month towards a loan. It has an interest part and a principal part, and the share of principal grows over time.
Example & agent tip
Example: A ₹50 lakh loan at 8.5% for 20 years has an EMI of about ₹43,400.
Agent tip: Use an EMI calculator with the client. Show how a longer tenure lowers the EMI but raises the total interest.
Related:
Home Loan
Pre-EMI
Tenure
Encroachment
Legal
The unlawful extension of a person's building, fence or use onto another's land or onto public land such as a road or a drain. Authorities can remove it, and a private owner can seek removal through the courts.
Example & agent tip
Example: A shopkeeper in Ambala extends his shed 6 feet into the municipal footpath, and the corporation issues a notice to remove it.
Agent tip: Walk the boundaries with the map before buying. A plot with an encroachment may be smaller than the deed shows.
Related:
Demarcation
Unauthorized Construction
Right of Way (ROW)
Eviction
Encumbrance
Legal
Any claim or burden on a property, such as a mortgage, lien, easement, court order or pending litigation, that can affect a buyer's rights.
Example & agent tip
Example: A flat that is mortgaged to a bank is an encumbered property until the loan is cleared.
Agent tip: Check the encumbrance certificate, the bank's NOC and CERSAI for charges.
Related:
Encumbrance Certificate (EC)
CERSAI
Lien
Encumbrance Certificate (EC)
Documents
Also called: Non-Encumbrance Certificate
A certificate from the Sub-Registrar showing registered transactions and charges on a property for a stated period. It reveals mortgages and other registered liens.
Example & agent tip
Example: A buyer obtains an EC for 30 years and finds an old mortgage that was never released.
Agent tip: Obtain it for at least 13 to 30 years where possible, and check that every charge has been closed.
Related:
Encumbrance
Sub-Registrar
Due Diligence
End User
Agent Practice
Also called: Self-use Buyer
A buyer who purchases property to live in or use personally, not to resell or rent. End users care about possession date, quality and approvals, and are usually more sensitive to delays than investors.
Example & agent tip
Example: A family buys a 3 BHK in Mohali to move in after their lease ends and refuses a project with a distant possession date.
Agent tip: Lead with possession date, approvals and neighbourhood when talking to end users, not returns.
Related:
Investor Buyer
Ready-to-Move (RTM)
Possession Date
Energy Conservation Building Code (ECBC)
Construction
Also called: ECBC, ECSBC
A code issued by the Bureau of Energy Efficiency that sets minimum energy performance standards for large commercial buildings, covering the envelope, lighting, air conditioning and power. BEE has since also issued an Energy Conservation and Sustainable Building Code (ECSBC 2024), so check which version your state applies. States adopt and notify the code for their own area.
Example & agent tip
Example: A mall planned in Lucknow chose glazing and lighting layouts to comply with the code before applying for sanction.
Agent tip: Check whether your state has notified the code and whether it applies to your project's connected load or built-up area.
Related:
Green Building
Building Bye-Laws
HVAC
Engineer, Architect and CA Certificates
RERA
Before a promoter withdraws money from the project's separate account, the withdrawal must be in proportion to work done, certified by an engineer, an architect and a chartered accountant. This ties spending to construction progress and protects buyers' money.
Legal basis: Section 4(2)(l)(D) of the RERA Act, 2016.
Example & agent tip
Example: A Panchkula promoter wants to withdraw funds after the second slab is cast. The three professionals certify the percentage completed, and only a matching share is released.
Agent tip: Ask a promoter whether recent withdrawals were certified. A project with regular certificates usually has better financial discipline.
Related:
Escrow Account
Section 4 (RERA)
Quarterly Update
Environmental Clearance
Approvals
Approval from the environment authority for larger building and township projects under the EIA Notification, 2006. It sets conditions on water, waste, trees and energy.
Example & agent tip
Example: A 30,000 sq m building project must obtain environmental clearance before the commencement certificate.
Agent tip: Ask larger projects for their environmental clearance and compliance reports.
Related:
Commencement Certificate
Sanctioned Plan
Equitable Mortgage
Finance
A mortgage created by depositing the title deeds with the lender with the intention to secure the loan. It is common for loans in towns where the law allows it.
Legal basis: Transfer of Property Act, 1882, Section 58(f). It applies in Kolkata, Chennai, Mumbai and other towns notified by the State Government.
Example & agent tip
Example: A borrower hands over the original sale deed to the bank to create an equitable mortgage.
Agent tip: Ask the seller to confirm that the original documents are free from any such deposit.
Related:
Mortgage
Mortgage Deed
Encumbrance Certificate (EC)
Equity
Investment & Valuation
The part of a property's value that the owner holds, equal to market value minus the outstanding loan.
Example & agent tip
Example: A flat worth ₹80 lakh with a ₹40 lakh loan balance gives ₹40 lakh equity.
Agent tip: Equity rises with repayment and price gains.
Related:
Home Loan
Market Value
e-Registration
General & Places
A system in some states that lets people book appointments, upload documents and complete part of registration online.
Example & agent tip
Example: A buyer in a digital state books a Sub-Registrar slot online.
Agent tip: Check the state's online registration portal.
Related:
Registration (Property)
Sub-Registrar
e-Stamping
Escalation Clause
Investment & Valuation
A lease or sale term allowing price or rent to rise at set intervals. Commercial leases often include an annual or three-yearly increase of 5 to 15%.
Example & agent tip
Example: A lease starts at ₹80 per sq ft with a 5% increase each year.
Agent tip: Check how the increase is calculated and when it applies.
Related:
Lease Deed
Pre-Leased Property
Escheat
Legal
The passing of property to the government when its owner dies without any legal heir or will. In India, the state takes the property, and the claim is made under the doctrine of escheat and the related provisions of the Constitution.
Example & agent tip
Example: A man in Dehradun dies without any known relative or will. The district authority takes steps to take over his empty house for the state.
Agent tip: Property is rarely escheated if a legal heir exists. If an owner is old and alone, a registered will helps.
Related:
Intestate Succession
Will
Legal Heir Certificate
Revenue Record
Escrow Account
RERA
Also called: RERA Account, 70% Rule
A separate bank account in which the promoter must keep 70% of the amounts realised from allottees. It is used only for construction and land costs, and withdrawals are certified by an engineer, an architect and a chartered accountant in proportion to the work done.
Legal basis: Section 4(2)(l)(D) of the RERA Act, 2016.
Example & agent tip
Example: A developer collects ₹10 crore from buyers and must deposit ₹7 crore in the project account.
Agent tip: This is 70% of the amounts received from allottees, not 70% of the project cost.
Related:
Section 4 (RERA)
Quarterly Update
Promoter
e-Stamping
Documents
A system for paying stamp duty electronically, run in most states through the Stock Holding Corporation of India or state agencies. The certificate has a unique number that can be verified online.
Example & agent tip
Example: A buyer pays ₹3.5 lakh in stamp duty through an e-stamp certificate before the sale deed.
Agent tip: Verify the certificate number on the official site before registration.
Related:
Stamp Duty
Stamp Paper
Registration (Property)
Estate Office, Chandigarh
Authorities
The office of the Chandigarh Administration that manages the leasehold sites, houses and commercial properties in the city. Transfers, mutations, conversions and dues for such properties are processed through it.
Example & agent tip
Example: A buyer of a Chandigarh leasehold house checks with the Estate Office that dues are paid and the transfer is recorded.
Agent tip: In Chandigarh, ask for the Estate Office records and dues status before buying.
Related:
Chandigarh Housing Board (CHB)
Leasehold Property
Mutation
Evacuee Property
Land Records
Also called: Evacuee Land, Displaced Persons Property
Property in India left behind by people who migrated to Pakistan around Partition and then managed by the Custodian under special laws. Some of it was allotted to displaced persons, and title issues can still be seen in old cases.
Example & agent tip
Example: A shop in an old Amritsar market is described as allotted evacuee property. The buyer asks for the allotment and the sale-certificate trail.
Agent tip: For old city properties in the north, check how the first allottee obtained title. Missing sale certificates cause trouble in resale.
Related:
Title
Link Documents
Marketable Title
Revenue Record
Eviction
Legal
The legal removal of a tenant or occupier from a property. It must follow the law and the agreement, and usually needs a court or authority order.
Example & agent tip
Example: A landlord files for eviction after a tenant fails to pay rent for six months.
Agent tip: Never advise forceful eviction. It is illegal.
Related:
Tenant
Rent Control Act
EWS/LIG/MIG/HIG Category
Property Types
Also called: EWS, LIG, MIG, HIG
Income-based groups used in housing schemes: Economically Weaker Section, Low Income Group, Middle Income Group and High Income Group. Each scheme sets its own income limits and unit sizes, so the same household may fall in different groups in different schemes.
Example & agent tip
Example: A family in Panchkula applies for an LIG flat in a state housing scheme after proving income as per the scheme rules.
Agent tip: Always read the income limits in the latest scheme brochure. Old figures often appear in agents' notes.
Related:
Affordable Housing
Pradhan Mantri Awas Yojana (PMAY)
Credit Linked Subsidy Scheme (CLSS)
Exchange Deed
Documents
A deed by which two persons swap properties, each giving up one for the other. It is registered, with stamp duty charged on the value of the property, and each party becomes owner of what they receive.
Example & agent tip
Example: Two neighbours in Panchkula exchange adjoining plots to straighten their boundaries, and they sign a registered exchange deed.
Agent tip: Even if values are equal, duty is still payable under the state's rule. Check the stamp duty before signing.
Related:
Sale Deed
Stamp Duty
Registration (Property)
Title Deed
Exclusive Mandate
Agent Practice
An agreement under which an owner or developer gives one agent the sole right to sell a property for a period.
Example & agent tip
Example: A seller gives a 90-day exclusive mandate to an agent and agrees to pay 1% on any sale.
Agent tip: Exclusive mandates need clear terms on the period, price and what happens on a direct sale.
Related:
Open Listing
Brokerage
Expansion Joint
Construction
A deliberate gap between two parts of a large building that lets them move with temperature changes or settlement without cracking. The gap is covered with a flexible cover or sealant, and it is often visible in long corridors and podium slabs.
Example & agent tip
Example: In a long mall in Ludhiana, a vertical gap running through all floors was an expansion joint, and the cover plates hid it in the corridor.
Agent tip: Do not fill or block expansion joints during interior work. They need to remain free to move.
Related:
Podium
Slab
Waterproofing
Expressway
General & Places
A high-speed, access-controlled road with limited entry points. Land close to interchanges and planned nodes is often a topic in property talk, but access depends on service roads and local connections.
Example & agent tip
Example: A buyer notes a plot is "near the expressway" but learns the nearest entry point is far away.
Agent tip: Ask for the actual distance to the nearest entry or exit and for the service road status.
Related:
Right of Way (ROW)
Industrial Corridor
Micro-market
Land Acquisition (RFCTLARR Act, 2013)
Extension of Registration
RERA
The authority's grant of more time to complete a project, usually when the promoter asks for it. Only force majeure extensions under Section 6 are within the Act's one-year limit.
Example & agent tip
Example: A promoter applies for an extension and the authority grants it for a stated period.
Agent tip: Buyers' rights under Section 18 are not wiped out because the authority has extended the registration.
Related:
Section 6 (RERA)
Force Majeure
External Benchmark Lending Rate (EBLR)
Finance
Also called: EBLR, External Benchmark Linked Rate
A home loan rate that is tied to a benchmark outside the lender's control, such as the RBI repo rate or a Treasury bill yield. Since October 2019, banks must link new floating-rate retail loans to such a benchmark, and add a spread on top.
Example & agent tip
Example: A private bank prices Nandini's loan at repo rate plus a spread, so when the repo rate changes her loan rate follows by the next reset.
Agent tip: The benchmark is the same for everyone at one bank. The spread is the number worth negotiating before signing.
Related:
Repo-Linked Lending Rate (RLLR)
Interest Rate Spread
MCLR (Marginal Cost of Funds based Lending Rate)
External Development Charges (EDC)
Approvals
Charges collected by the government from colonisers to fund external infrastructure such as roads, water and power for a colony. In Haryana and Punjab, builders pass part of the cost to buyers.
Example & agent tip
Example: A plotted colony's price sheet lists EDC as a separate item.
Agent tip: Check whether EDC is included in the basic price or charged extra, and whether the full amount has been paid to the authority.
Related:
Internal Development Charges (IDC)
Colony Licence