IGBC Rating
Construction
Also called: Indian Green Building Council Rating
A green building rating given by the Indian Green Building Council, part of the Confederation of Indian Industry. A project earns points for water, energy, materials, site and indoor quality, and receives a rating level such as certified, silver, gold or platinum, depending on the programme.
Example & agent tip
Example: A Hyderabad office park advertised an IGBC Gold rating after cutting water use and adding efficient lighting.
Agent tip: Ask for the certificate and check whether the rating is pre-certification (design stage) or final (after completion).
Related:
Green Building
GRIHA Rating
Rainwater Harvesting
IGR (Inspector General of Registration)
General & Places
The registration department head in a state. In Maharashtra the IGR runs the online services for registration, Index II and stamp duty.
Example & agent tip
Example: A buyer in Maharashtra uses the IGR portal to search registered documents.
Agent tip: Check which state portal is used for registered documents.
Related:
Index II
Sub-Registrar
Registration (Property)
Impounding of Documents
Tax & Duties
Also called: Impounding of Instrument
The power of an authorised officer to take custody of a document that appears to be insufficiently stamped or unstamped. The document is held until the proper duty and any penalty are paid.
Legal basis: Section 33 of the Indian Stamp Act, 1899, and state stamp laws.
Example & agent tip
Example: A court notices an agreement for sale with too little stamp duty and sends it to the collector, who impounds it until the deficit is paid.
Agent tip: Pay the right stamp duty at the start. An impounded document can delay a sale or a court case.
Related:
Deficit Stamp Duty
Stamp Duty
Stamp Paper
Inam Land
Land Records
Also called: Inam, Inamdar Land, Watan Land
Land that was historically granted free of rent or at a reduced rent by a ruler or the government, for service, religious or charitable purposes. Many states have abolished the grants, but some inam lands still carry transfer restrictions.
Example & agent tip
Example: In Solapur, a plot is shown as inam land in the old records. The buyer's lawyer finds that the grant was abolished and the land regularised after the holder paid the due amount.
Agent tip: Ask for the order that abolished or regularised the inam. Without it, the seller may not have a transferable title.
Related:
Occupancy Class II Land
Revenue Record
Title
Marketable Title
Income Capitalisation Approach
Investment & Valuation
Also called: Income Approach, Investment Method
A valuation method for income-producing property, which divides the net operating income by a capitalisation rate to find the value. It suits offices, shops, warehouses and rented buildings.
Example & agent tip
Example: A valuer divides a rented Panchkula showroom's yearly net income of ₹30 lakh by a capitalisation rate of 7.5% to get a value of ₹4 crore.
Agent tip: A small change in the cap rate changes the value a lot, so ask how it was chosen.
Related:
Capitalisation Rate
Net Operating Income (NOI)
Pre-Leased Property
Income from House Property
Tax & Duties
A head of income that taxes the annual value of a property, mainly rent. The owner gets a 30% standard deduction on net annual value and can claim home loan interest, subject to limits.
Example & agent tip
Example: A landlord earns ₹3 lakh in rent a year. After municipal taxes, he claims a 30% deduction on the net value.
Agent tip: Explain that self-occupied property has different treatment from rented property.
Related:
Standard Deduction (House Property)
Home Loan Interest Deduction
Indemnity Bond
Documents
A document in which a party promises to compensate another for loss that arises from a specified risk, such as a missing original document.
Example & agent tip
Example: A bank asks the seller to give an indemnity bond if the original allotment letter is lost.
Agent tip: Use an indemnity only as a stop-gap. If the original is missing, look for a certified copy first.
Related:
Affidavit
Title Deed
Independent House
Property Types
A stand-alone house built on a plot owned by the buyer. The buyer owns both the building and the land.
Example & agent tip
Example: A 10 marla independent house in Mohali comes with a full plot and no common society charges.
Agent tip: Check the building plan, completion certificate and mutation. Independent houses are often unapproved extensions.
Related:
Villa
Plot
Completion Certificate (CC)
Index II
Land Records
A Maharashtra registration department extract showing the details of a registered document, including parties, property description, price and stamp duty paid. It helps verify past transactions.
Example & agent tip
Example: A buyer checks Index II extracts to see what price was paid on the last sale of a flat.
Agent tip: Use Index II to confirm past registered transfers and the consideration shown.
Related:
Property Card
Stamp Duty
Registration (Property)
Indexation
Tax & Duties
Adjusting the purchase cost of an asset for inflation using the Cost Inflation Index, so that tax is levied only on the real gain. For property it now applies only under the optional 20% route for resident individuals and HUFs on property acquired before 23 July 2024.
Example & agent tip
Example: A flat bought in 2012 has its cost raised by the index figures before the gain is calculated.
Agent tip: Ask when the client bought the property. Date of purchase decides whether the indexation option exists.
Related:
Long-Term Capital Gains
Capital Gains
Indian Contract Act, 1872
Legal
The law that governs contracts, including agreements to sell property. A valid contract needs offer, acceptance, consideration, capacity and free consent.
Example & agent tip
Example: A contract signed under pressure can be void or voidable.
Agent tip: Know the basics when you advise on advance payments and cancellation.
Related:
Agreement to Sell (ATS)
Liquidated Damages
Indian Succession Act, 1925
Legal
Also called: Succession Act
The law on how property passes at death by will or without a will, for many communities. It sets rules on how wills are made, probate and letters of administration, and who inherits, although Hindus, Muslims and others are governed in part by their own laws.
Legal basis: Indian Succession Act, 1925.
Example & agent tip
Example: A Christian widow in Bengaluru needs to prove her late husband's will and applies for probate under this Act.
Agent tip: Ask which law governs the deceased's religion and property before relying on a family claim. It decides who the heirs are.
Related:
Will
Probate
Succession Certificate
Intestate Succession
Indore
General & Places
A major city of Madhya Pradesh known as a commercial and educational centre, with new townships, a metro in progress and an investment-promotion push. Super corridor and bypass areas are often discussed for plotted development.
Example & agent tip
Example: An investor from Bhopal visits Indore to see a plot near the Super Corridor, and checks that the colony is approved.
Agent tip: Madhya Pradesh has many unauthorised colonies, so ask for the approved layout and the MP RERA registration.
Related:
MP RERA
Approved Layout
Plotted Development
Colony
Industrial Corridor
General & Places
A planned belt of industrial nodes, transport links and supporting townships developed along a major rail or road route. It aims to attract factories and logistics, and the land around it often sees speculative interest.
Example & agent tip
Example: A land buyer hears that a new corridor will pass near his village and asks the district office whether acquisition has been notified.
Agent tip: Speculation can outrun reality. Rely on notified alignments and master plans, not on rumours or sketches.
Related:
Delhi-Mumbai Industrial Corridor (DMIC)
Industrial Plot
Master Plan
Land Acquisition (RFCTLARR Act, 2013)
Industrial Estate
Property Types
Also called: Industrial Area, Industrial Park
A planned industrial area developed by a state agency or private developer, with plots, roads, water, power and drainage, where manufacturing units are set up. Plots are normally allotted under rules with building and use conditions.
Example & agent tip
Example: Entrepreneurs apply for plots in an industrial focal point near Mohali developed by a state agency.
Agent tip: Read the allotment terms, including time limits to start production. Failure can lead to resumption of the plot.
Related:
Industrial Plot
Industrial Shed
Development Authority
Special Economic Zone (SEZ)
Industrial Plot
Property Types
A plot in an industrial area reserved for factories, godowns and related activity. Development authorities allot plots with specific use conditions and time limits for construction.
Example & agent tip
Example: A buyer in a Lalru industrial area must start construction within the period set in the allotment letter.
Agent tip: Check the authority's rules on transfer, change of use and construction deadlines.
Related:
Warehouse
Allotment Letter
Dormant Plot
Industrial Shed
Property Types
Also called: Factory Shed
A single-storey factory or workshop structure with a high roof and large open floor, built on an industrial plot for manufacturing or storage. Sheds can be sold or rented, with or without power load, and may be pre-engineered steel buildings.
Example & agent tip
Example: A small engineering unit rents a 6,000 sq ft shed in Dera Bassi with three-phase power and truck access.
Agent tip: Ask for the sanctioned power load and pollution clearance status, because a new tenant cannot start work without them.
Related:
Industrial Plot
Industrial Estate
Warehouse
Derabassi
Injunction
Legal
A court order that stops a party from doing something, or requires them to do something. It is often used to stop the sale or construction of a disputed property.
Legal basis: Specific Relief Act, 1963 and Civil Procedure Code, 1908.
Example & agent tip
Example: A court orders a seller not to sell a plot until the dispute with a co-owner is decided.
Agent tip: Always check for court orders on a property.
Related:
Civil Court
Litigation Check
Lis Pendens
In-Principle Approval
Finance
Also called: Pre-Approved Loan, Loan Pre-Approval
A lender's early indication that it is ready to lend a certain amount, based on the borrower's income and credit check but before the property has been legally and technically reviewed. It is not a final sanction and can be changed or withdrawn.
Example & agent tip
Example: Before visiting sites in Kharar, Simran gets an in-principle approval of ₹55 lakh, which tells her which projects she can seriously consider.
Agent tip: Present the approval to builders as proof of seriousness, but remind buyers that the final sanction depends on the property papers.
Related:
Sanction Letter
Home Loan Eligibility
Disbursement
Input Tax Credit (ITC)
Tax & Duties
A credit for GST paid on inputs, set against GST payable on outputs. Builders of residential projects at the standard 5% and 1% rates cannot claim ITC on those sales.
Example & agent tip
Example: A builder who has opted for the 5% rate cannot adjust GST paid on cement and services against its liability.
Agent tip: When a builder says "GST without ITC", it means the lower rate is charged and the builder bears the cost of inputs.
Related:
GST on Real Estate
Insolvency
Legal
A state in which a debtor cannot pay debts. Homebuyers are treated as financial creditors under the Insolvency and Bankruptcy Code, 2016, and a group of at least 100 allottees or 10% of the allottees in the same project, whichever is less, can start proceedings.
Legal basis: Insolvency and Bankruptcy Code, 2016, as amended in 2018 and 2020.
Example & agent tip
Example: Allottees of a stalled project file together under the Code against the developer.
Agent tip: Insolvency is a last resort. It can delay possession further, so advise carefully.
Related:
NPA (Non-Performing Asset)
Delay Interest
Institutional Plot
Property Types
Also called: Institutional Site
Land earmarked by a development authority for schools, hospitals, colleges, places of worship, community halls and similar uses. Allotment is normally by auction or reservation, with conditions on use and transfer.
Example & agent tip
Example: A trust wins an auction for an institutional plot in a Mohali sector to build a school, and may not use it for housing.
Agent tip: Resale or change of use is often restricted. Read the allotment conditions before presenting such a plot to a buyer.
Related:
Plot
Zoning (Land Use Zone)
Change of Land Use (CLU)
Development Authority
Interest Payable by Allottee (Section 19(7))
RERA
A buyer who delays a payment due under the agreement must pay interest at the rate set by the state rules. The rate is the same one the promoter pays on delays, so the interest rule works both ways.
Legal basis: Section 19(7) of the RERA Act, 2016; Section 2(za).
Example & agent tip
Example: A buyer pays an instalment 40 days late in Kharar and is charged interest at the same rate the promoter would owe on a delay.
Agent tip: Check the agreement for any higher late-payment rate. The RERA rate is the benchmark.
Related:
Delay Interest
Section 19 (RERA)
Demand Letter
Interest Rate Reset
Finance
Also called: Rate Reset, Reset Date
The date on which a floating-rate loan is repriced to match the benchmark. At reset, the lender changes the rate, and then either the EMI or the remaining tenure adjusts. RBI expects lenders to explain the change and offer the borrower a choice.
Example & agent tip
Example: Mehul's loan resets every three months. When the rate rose, his bank stretched the tenure by 14 months instead of raising the EMI, and he asked to switch to a higher EMI.
Agent tip: Check the reset frequency and who decides between a longer tenure and a higher EMI. Ask for a statement after every reset.
Related:
Floating Interest Rate
EMI (Equated Monthly Instalment)
Tenure
Interest Rate Spread
Finance
Also called: Spread, Lender's Margin
The fixed margin a lender adds to a benchmark rate to arrive at the home loan rate. The spread covers the lender's costs, risk and profit, and it often depends on the borrower's credit score, loan size and profession.
Example & agent tip
Example: Two buyers borrow from the same bank in Pune. One has a score above 780 and gets a lower spread, so her rate is lower than her neighbour's by a quarter of a percent.
Agent tip: Tell clients to ask for the spread in writing and to check whether it can be reduced later for a good repayment record.
Related:
External Benchmark Lending Rate (EBLR)
Credit Score (CIBIL)
Floating Interest Rate
Interest Subsidy Scheme (PMAY-U 2.0)
Finance
Also called: PMAY-U 2.0 ISS, PMAY Urban 2.0
The home-loan support part of the urban Pradhan Mantri Awas Yojana 2.0. It offers a government interest subsidy on a limited loan amount to eligible buyers from economically weaker, lower and middle income households, within house-price and income caps.
Legal basis: Guidelines of the Ministry of Housing and Urban Affairs for PMAY-Urban 2.0. The older CLSS stopped taking new beneficiaries earlier.
Example & agent tip
Example: Under the current guidelines a household with income up to ₹9 lakh buying a home worth up to ₹35 lakh may get a 4% subsidy on the first ₹8 lakh of the loan, released in instalments while the loan stays active.
Agent tip: Rules and cut-off dates change, so check the official portal and the lender before promising any subsidy to a client.
Related:
Pradhan Mantri Awas Yojana (PMAY)
Credit Linked Subsidy Scheme (CLSS)
Affordable Housing
Internal Development Charges (IDC)
Approvals
Charges for infrastructure inside a colony such as internal roads, drains and parks, usually paid by the developer or collected from buyers as per the scheme.
Example & agent tip
Example: An allotment letter lists IDC along with the plot price.
Agent tip: Ask which charges are in the quoted price.
Related:
External Development Charges (EDC)
Approved Layout
Internal Rate of Return (IRR)
Investment & Valuation
The yearly return rate that makes the present value of all cash inflows and outflows from an investment equal to zero. It considers the timing of each payment.
Example & agent tip
Example: An investor compares two projects, one with rent plus a sale after five years, and picks the higher IRR.
Agent tip: IRR helps compare projects with different payment timelines.
Related:
Return on Investment (ROI)
Rental Yield
Intestate Succession
Legal
Also called: Succession Without Will, Dying Intestate
The passing of a person's property by law, when the owner dies without a valid will. The heirs and their shares depend on the deceased's religion and the personal law that applies to the person.
Example & agent tip
Example: A bachelor in Lucknow dies without a will, and his mother and siblings inherit his flat in the manner his personal law sets out.
Agent tip: In such cases, a legal heir certificate or succession certificate, plus mutation, is needed before the heirs can sell.
Related:
Legal Heir Certificate
Succession Certificate
Hindu Succession Act, 1956
Indian Succession Act, 1925
Intimation of Disapproval (IOD)
General & Places
A document issued by the Brihanmumbai Municipal Corporation to a developer listing the conditions that must be satisfied before the commencement certificate is given.
Example & agent tip
Example: A Mumbai developer receives an IOD and must meet its conditions before starting construction.
Agent tip: A project with only an IOD has not yet got full permission to start.
Related:
Commencement Certificate
Sanctioned Plan
Intkal
Land Records
The Punjabi and Haryanvi term for mutation: the entry that records a change of ownership in the revenue record after sale, inheritance or gift.
Example & agent tip
Example: After a registered sale deed in Mohali, the buyer checks that intkal is sanctioned, applying at the tehsil if it is not.
Agent tip: Without intkal, the Jamabandi continues to show the old owner. Punjab's online service now starts intkal after registration, so check that it was completed.
Related:
Mutation
Jamabandi
Tehsildar
Inventory
Agent Practice
The list of unsold units, plots or flats that a developer or agent has available.
Example & agent tip
Example: A developer sends an inventory sheet showing 42 unsold flats in a tower.
Agent tip: Confirm availability and price on the day of the site visit.
Related:
Price Sheet (Cost Sheet)
Payment Plan
Inventory Overhang
Investment & Valuation
Also called: Months of Inventory, Quarters to Sell
A situation in which a city or micro-market has so many unsold homes that it would take many years of current sales to clear them. It is measured by dividing unsold stock by the sales rate, and shows a risk of slow price growth.
Example & agent tip
Example: A micro-market in Zirakpur has 4,000 unsold flats and sells 500 a year, so clearing the stock would take about eight years.
Agent tip: Check for overhang by project and by price band before suggesting a locality. A high overhang gives buyers more negotiating power.
Related:
Unsold Inventory
Absorption Rate
Sales Velocity
Investor Buyer
Agent Practice
A buyer who purchases property for rental income or resale profit. Investors look at price trends, rental yield, exit options and taxes, and are often keen on early-stage deals and low entry prices.
Example & agent tip
Example: A doctor buys two units in an upcoming Zirakpur project to rent one and sell the other after possession.
Agent tip: Give investors realistic numbers including taxes and holding costs. Avoid promising returns.
Related:
End User
Rental Yield
Capital Appreciation
Assured Return
InvIT (Infrastructure Investment Trust)
Investment & Valuation
Also called: InvIT, Infrastructure Investment Trust
A trust regulated by SEBI that holds income-producing infrastructure such as toll roads or power lines and pays out most of its income to unit holders. It is not the same as a REIT, which owns offices and malls.
Legal basis: SEBI (Infrastructure Investment Trusts) Regulations, 2014.
Example & agent tip
Example: An investor buys units of a trust that owns highways, and receives a periodic payout from toll collections.
Agent tip: Do not call an InvIT a real estate investment. It owns infrastructure, so risks and returns differ from property.
Related:
REIT (Real Estate Investment Trust)
SEBI
Collective Investment Scheme
IT City (Mohali)
General & Places
A planned area in Mohali near the airport road meant for IT companies and related housing and commercial development. Buyers should check what is actually built and approved at the time of purchase.
Example & agent tip
Example: An investor eyes a plot near IT City Mohali for future commercial use and asks the agent for planning documents.
Agent tip: Ask for the authority's planned land use. Do not rely on future promises of company arrivals.
Related:
Mohali (SAS Nagar)
IT Park
Master Plan
IT Park
Property Types
A planned campus of office buildings designed for software and technology firms, with high-speed connectivity, power backup, cafeterias and parking. It may be inside an SEZ or outside. Tenants lease floors or whole blocks.
Example & agent tip
Example: A start-up leases two floors in an IT park in Mohali with power backup and shared meeting rooms.
Agent tip: Compare lease rate per sq ft with the maintenance charge. For tenants the total monthly cost matters.
Related:
Special Economic Zone (SEZ)
Grade A Office
Office Space
CAM Charges