India Real Estate Dictionary

Lal Dora

Land Records

The boundary of the old inhabited area (abadi) of a village in Punjab, Haryana and Delhi. Land inside it was exempt from some building and colony rules, but this exemption has been narrowed in many places.

Example & agent tip

Example: A seller offers a house in a village's Lal Dora area without an approved plan. The buyer must check the local authority's rules.

Agent tip: Lal Dora land often lacks sanctioned plans and formal titles. Verify before you quote a price.

Lalru

General & Places

A town near Derabassi in Mohali district, Punjab, on the Chandigarh–Ambala highway. It has a large industrial area and growing plotted development.

Example & agent tip

Example: A buyer looks at an industrial plot at Lalru.

Agent tip: Verify the industrial zone, the authority approval and the project's RERA registration where applicable.

Land Acquisition (RFCTLARR Act, 2013)

Legal

The central law under which governments acquire private land for public purposes, with compensation, rehabilitation and consent requirements.

Legal basis: Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Example & agent tip

Example: A landowner is paid compensation when land is acquired for a highway.

Agent tip: Check whether a plot is under acquisition notice before you quote a price.

Related: Land Pooling Master Plan

Land Banking

Investment & Valuation

Buying land in advance, with the expectation of price gains or later development.

Example & agent tip

Example: An investor buys plots on the edge of a growing city and holds them for ten years.

Agent tip: Check clear title, zone and approvals. Many land banking schemes have been unauthorised or fraudulent.

Land Dispute Proceedings (BNSS Section 164)

Legal

Also called: BNSS 164, CrPC 145, Section 145 Proceedings

A procedure under the Bharatiya Nagarik Suraksha Sanhita by which a magistrate acts when a dispute over land or water threatens a breach of peace. The magistrate decides who is in possession for the moment, and not who owns the land.

Legal basis: Bharatiya Nagarik Suraksha Sanhita, 2023, Section 164 (earlier CrPC Section 145).

Example & agent tip

Example: Two families quarrel over a boundary strip near Patiala, and the magistrate passes an order recording who holds possession until the civil court decides title.

Agent tip: Such an order does not decide ownership. Use it as a quick relief, and go to the civil court for title.

Land Pooling

Land Records

A method of land assembly in which owners hand over land to a development agency and receive back a smaller developed plot with roads and services. It avoids forced acquisition.

Example & agent tip

Example: Under a pooling scheme an owner of 4 acres receives developed plots in the new township instead of cash.

Agent tip: Understand the scheme's rules and plot ratio before you advise a landowner. Policies change.

Land Reforms

Land Records

Also called: Bhumi Sudhar

State laws intended to reduce inequality in landholding. They covered abolishing intermediaries, protecting tenants, limiting how much land one family can hold, and distributing surplus land to the landless. Land is a state subject, so rules differ.

Example & agent tip

Example: In West Bengal, a family finds that part of its old holding was vested as surplus under the state's ceiling law and given to landless farmers decades ago.

Agent tip: Old agricultural holdings may be affected by ceiling or tenancy orders. Check that the land was not declared surplus or given to a tenant.

Land Settlement (Revenue Settlement)

Land Records

Also called: Bandobast, Settlement Survey, Resettlement

The process by which a state surveys land, fixes its revenue and records who holds it. Settlements gave rise to the old systems named zamindari, ryotwari and mahalwari, and fresh settlements still update the records.

Example & agent tip

Example: A district's records date from a settlement done in the 1930s and a revised one in the 1980s. A buyer's lawyer compares the two to follow how a plot's number changed.

Agent tip: When numbers differ between old and new records, ask for the settlement or resurvey conversion table.

Land Value Deduction (GST)

Tax & Duties

Also called: One-Third Land Deduction

A rule for GST on under-construction flats where one-third of the total price is treated as land value and left out of GST. The effective rates for residential projects already take this into account, so buyers see just the final rate.

Legal basis: Notified under the CGST Act, 2017 through the real estate rate notifications; check the current notification.

Example & agent tip

Example: On a ₹60 lakh under-construction flat, the builder's invoice shows GST at the effective rate on the full price, not an extra rate on land.

Agent tip: Do not let a builder add GST on top of a quoted all-inclusive effective rate. Ask for a clear bill.

Landlord

Legal

The owner of a property who rents it out.

Example & agent tip

Example: A landlord rents a flat and collects a deposit.

Agent tip: Check that the landlord has the right to let the property.

Related: Tenant Rent Agreement

Landran

General & Places

A locality near Mohali and Kharar, known for institutes, group housing and plotted projects. Buyers should check road width, sewer connection and approvals for each project.

Example & agent tip

Example: A student family looks at a rental flat in Landran near a university campus.

Agent tip: Check the colony approval and water supply, because supply and sewer quality vary by pocket.

Latha (Cloth Map)

Land Records

Also called: Lattha, Masavi

A traditional village map in Punjab and Haryana, historically drawn on cloth, showing every field with its number and shape. Patwaris still use it with the jamabandi to identify a parcel and its neighbours.

Example & agent tip

Example: A Patwari in a Fatehgarh Sahib village spreads out the latha to show a buyer that the plot in the jamabandi sits at the village edge, not beside the canal as the seller claimed.

Agent tip: Ask the Patwari to mark the plot on the latha and sign the copy. It is cheap and settles many location doubts.

Launch Offer

General & Places

A discounted price, waived charge or special payment plan offered at the start of sales in a project. Buyers should check whether the offer is genuinely lower or just a rearranged cost.

Example & agent tip

Example: A developer offers free parking and waives club membership for the first fifty bookings.

Agent tip: Compare the all-in cost with and without the offer. Get the offer written into the agreement.

Layout Plan

Approvals

A drawing that divides land into plots, roads, parks and utility areas for a colony or plotted scheme.

Example & agent tip

Example: A layout plan for a 20 acre colony shows 180 plots, a 40 ft main road and a park.

Agent tip: Compare the layout plan with the plot you are shown. Changes to roads or parks are a warning sign.

Lead

Agent Practice

A person or enquiry that may buy or rent a property. Agents record leads in a CRM and follow them up.

Example & agent tip

Example: A buyer fills a form on a project website and becomes a lead.

Agent tip: Record the source, budget and timeline of each lead.

Related: Site Visit CRM

Lead Generation

Agent Practice

The activities by which an agent finds new prospects, such as portals, social media, referrals, hoardings, WhatsApp groups, events and walk-ins. Good generation balances cost per lead with quality of the lead.

Example & agent tip

Example: An agent runs a local social media ad for a Zirakpur project and collects phone numbers through a simple form.

Agent tip: Always record the source of each lead. It shows which channel is worth paying for.

Lead Protection Period

Agent Practice

Also called: Lead Validity

The time during which a developer will credit a registered lead to the agent who introduced it. If the client does not book within that time, the registration may lapse and another agent may bring the client.

Example & agent tip

Example: A developer gives 60 days validity to registrations. The client books on day 75 and the developer treats the lead as new.

Agent tip: Ask for the period in writing and ask for extension if the client needs more time.

Lead Qualification

Agent Practice

Checking whether an enquirer is a serious buyer by asking about budget, purpose, timeline, location preference, financing and decision makers. It saves time by sorting real buyers from casual enquiries.

Example & agent tip

Example: Before a site visit, the agent asks a caller about budget, home loan eligibility and who else will decide.

Agent tip: Ask for budget and timeline in the first call, politely. Skipping this wastes visits.

Related: Lead Sales Funnel Site Visit

Lead Registration

Agent Practice

Also called: Client Registration, Visitor Registration

Informing a developer in writing, with the client's name and phone, that a particular buyer was introduced by your firm, so that the developer credits the booking to you. It is the main protection for channel partners.

Example & agent tip

Example: Before taking a client to a Mohali launch, an agent sends the registration form to the developer by email and gets acknowledgement.

Agent tip: Register before the visit, not after. Keep the acknowledgement safely.

Lease Deed

Documents

A document recording a lease of immovable property for a defined period at agreed rent or premium. A lease of more than one year must be registered.

Legal basis: Transfer of Property Act, 1882 (Section 105) and Registration Act, 1908 (Section 17).

Example & agent tip

Example: A 9-year lease of a showroom with a 5% annual rent increase is signed as a registered lease deed.

Agent tip: For commercial leases, check lock-in, escalation, notice, security deposit and fit-out terms.

Lease Rental Discounting

Finance

Also called: LRD

A loan against future rent from a leased commercial property. The lender advances money today based on rent payable under existing lease agreements, and the rent is routed to repay the loan.

Example & agent tip

Example: Owner of a Panchkula showroom with a ten-year lease to a retail chain gets a loan sized on the monthly rent receivable, which is paid straight to the bank.

Agent tip: The strength of the tenant and the length of the lock-in are what banks check first.

Leasehold Property

Legal

Property held for a fixed term under a lease from the owner, often a development authority. The leaseholder may need permission to transfer it, and may pay transfer fees or ground rent.

Example & agent tip

Example: Delhi Development Authority flats and many plots in Navi Mumbai were originally leasehold.

Agent tip: Check the remaining lease term, the transfer rules and any conversion to freehold policy.

Leave and License Agreement

Documents

Also called: Leave and License

An arrangement in which an owner permits another person to use the property for a fixed term without creating a tenancy. It is widely used in Maharashtra and for 11-month agreements.

Legal basis: Section 52 of the Indian Easements Act, 1882. In Maharashtra, such agreements are also governed by the state's rent control law.

Example & agent tip

Example: An owner in Pune signs an 11-month leave and license agreement with an IT employee.

Agent tip: In Maharashtra, Section 55 of the Maharashtra Rent Control Act, 1999 makes a written, registered agreement compulsory for a leave and licence, and the owner is responsible. A short term does not remove this.

Related: Rent Agreement Lessor Licensee

Legal Heir Certificate

Legal

A document issued by the revenue authority (usually the tehsildar) that names the legal heirs of a deceased person. Buyers ask for it when title comes by inheritance.

Example & agent tip

Example: A son applies for a legal heir certificate after his father's death, to mutate the house in the family's names.

Agent tip: Check that all heirs are listed and that they agree to the sale.

Legal Notice

Legal

Also called: Lawyer Notice, Vakil Notice

A formal written notice sent through a lawyer, which tells the other side about a claim and demands action within a stated time. It is a normal first step in property and payment disputes, and some laws require it before filing a case.

Example & agent tip

Example: A buyer in Chandigarh sends a legal notice to a builder, demanding possession within 30 days or a refund with interest.

Agent tip: Keep the postal receipts and email proof. State the facts, the amount and the deadline clearly.

Legal Title Report

Documents

A lawyer's written opinion on whether the seller has a clear and marketable title, based on a review of documents, searches and records.

Example & agent tip

Example: A bank's panel lawyer issues a title report before approving a home loan on an under-construction flat.

Agent tip: Suggest a title search to buyers of plots and resale flats. Review the report for any conditions.

Lessee

Legal

The person who takes a property on lease.

Example & agent tip

Example: A company that leases an office is the lessee.

Agent tip: Read the lessee's obligations on rent, repairs and sub-letting.

Related: Lessor Lease Deed

Lessor

Legal

The person who grants a lease, usually the property owner.

Example & agent tip

Example: The owner of a showroom is the lessor in the lease.

Agent tip: Check that the lessor has the right to grant the lease.

Related: Lessee Lease Deed

Letter of Intent (LoI)

Documents

A document in which one party states its intention to enter a deal, such as to buy or lease premises, on broad terms. It is usually not final, though parts of it can bind if the document says so. It is common in commercial leasing.

Example & agent tip

Example: A retail brand sends a letter of intent to a mall owner in Gurugram for a 2,000 square foot shop, subject to a lease agreement.

Agent tip: State clearly whether the letter is binding. Add the date by which the full lease must be signed.

Leverage

Investment & Valuation

Using borrowed money to buy an asset. It can raise returns when prices rise but increases loss when they fall.

Example & agent tip

Example: An investor buys a ₹1 crore flat with ₹20 lakh of own money and an ₹80 lakh loan.

Agent tip: Warn investors that leverage increases risk.

Related: Equity Home Loan

Licensee

Legal

A person allowed to use a property under a licence, without any interest in the property itself. A licence can be withdrawn, unlike a tenancy.

Legal basis: Indian Easements Act, 1882, Section 52.

Example & agent tip

Example: A person staying under a leave and license agreement is a licensee.

Agent tip: Keep the agreement in writing and stamped.

Lien

Finance

A right to hold property as security until a debt is paid.

Example & agent tip

Example: A bank has a lien on a flat until the loan is repaid.

Agent tip: A lien may not appear in the registrar's records. Ask the seller for confirmation from the lender.

Related: Mortgage CERSAI

Lift Licence

Approvals

Also called: Lift Permit

A licence from the state electrical or lift inspectorate to run a passenger lift, issued after inspection of safety devices and testing. It needs periodic renewal in many states, and operating without it is an offence.

Example & agent tip

Example: A residential society in Mohali found its lift licences had lapsed and had to arrange inspection before renewing.

Agent tip: Ask the society or builder for current lift licences. They matter for safety and for insurance claims.

Limitation Act, 1963

Legal

Also called: Limitation Act

The law that sets time limits within which a person must file a court case. After the time lapses, the court will normally not hear the claim. It sets periods for suits on contracts, possession of property and other civil claims.

Legal basis: Limitation Act, 1963 (for example, Article 65 sets 12 years for a suit for possession based on title).

Example & agent tip

Example: A buyer in Raipur waits eight years after a builder's default and then files for a refund. The builder objects that the claim is time-barred.

Agent tip: Note down key dates, such as the possession date and the last demand. Act early rather than waiting for limitation to be argued.

Limitation Period

Legal

The time within which a legal claim must be filed. After it expires, the claim is barred. A suit for specific performance of a sale contract has a three-year period.

Legal basis: Limitation Act, 1963.

Example & agent tip

Example: A buyer who waits four years after the seller refuses to execute a sale deed may lose the right to sue for specific performance.

Agent tip: Tell clients to act quickly when a dispute arises.

Link Documents

Documents

Also called: Link Document, Chain of Title

The chain of earlier title documents that connect the current owner back through earlier transactions to a source of title. A complete chain shows an unbroken history of ownership.

Example & agent tip

Example: A plot's seller shows a 2019 sale deed, but there is no document linking the previous owner to the original allottee. The chain is broken.

Agent tip: A missing link is a red flag. Ask a lawyer to review the chain before the booking amount is paid.

Lintel

Construction

A horizontal beam placed over a door, window or other opening in a wall. It carries the weight of the masonry above and passes it to the sides of the opening. Most Indian homes use a small reinforced concrete lintel.

Example & agent tip

Example: A homeowner in Panchkula noticed a diagonal crack above a window and found the lintel was too short and had too little bearing on the wall.

Agent tip: Hairline cracks over openings are common, but wide or growing cracks near a lintel deserve a structural engineer's visit.

Liquidated Damages

Legal

A fixed sum agreed in a contract as compensation for a breach. Courts allow reasonable amounts and may reduce penalties.

Example & agent tip

Example: An agreement states that a buyer who cancels forfeits 10% of the price.

Agent tip: One-sided cancellation terms may be challenged. RERA has no fixed forfeiture cap. A promoter can cancel only in terms of the agreement, and an allottee can approach the Authority against unilateral or unjustified cancellation.

Liquidity Risk (Real Estate)

Investment & Valuation

Also called: Illiquidity

The risk that a property cannot be sold quickly at a fair price when the owner needs cash. Property takes time to market, negotiate, check papers and register, so it is less liquid than shares or bank deposits.

Example & agent tip

Example: Hardeep needs money in a hurry but his Kharar plot takes eight months to find a buyer at a fair price.

Agent tip: Remind investors not to put money they may need soon into property.

Lis Pendens

Legal

A principle that a property involved in a pending court case cannot be transferred in a way that affects the rights of the parties in that case.

Legal basis: Transfer of Property Act, 1882, Section 52.

Example & agent tip

Example: A plot is sold while a title suit is pending. The buyer is bound by the outcome of the suit.

Agent tip: Check for pending cases before buying.

Related: Litigation Check Injunction

Litigation Check

Legal

A search to find out whether a property is involved in any court case or dispute, done through court records and by enquiry.

Example & agent tip

Example: A buyer's lawyer searches the district court and consumer forum records for the seller's name.

Agent tip: Add litigation search to your due diligence checklist.

Related: Due Diligence Lis Pendens

Load-Bearing Structure

Construction

A building in which walls carry the load, common in older and low-rise construction. Removing walls can be unsafe.

Example & agent tip

Example: A century-old house with thick brick walls is load-bearing.

Agent tip: Check structural safety carefully before renovating an old load-bearing building.

Loading Factor

Measurement

The percentage by which carpet area is increased to arrive at super built-up area. It covers walls, balconies and the buyer's share of common areas, and it varies from project to project.

Example & agent tip

Example: Carpet 1,000 sq ft and super area 1,300 sq ft means a 30% loading. The buyer pays for 300 sq ft they cannot personally use.

Agent tip: High loading above roughly 40% is a flag worth raising with the buyer, particularly where the project has few amenities.

Loan Against Property (LAP)

Finance

A loan raised by mortgaging an existing property, used for business or personal needs rather than for buying the property itself.

Example & agent tip

Example: A shop owner mortgages his office to raise working capital.

Agent tip: LAP rates are usually higher than home loan rates.

Related: Mortgage Home Loan

Loan Closure Certificate

Documents

Also called: Loan Closure Letter, Loan Foreclosure Letter

A letter from a bank or lender confirming that a loan has been repaid in full and no amount is due. It goes with the release of the original property documents and the removal of the lender's charge on the property.

Example & agent tip

Example: Before selling her Noida flat, Pooja collects the loan closure letter and the original agreement from her bank, so the buyer can check the charge is removed.

Agent tip: After closure, make sure the lender's charge is removed from CERSAI and the registrar's record, not only from its own books.

Loan Closure Letter

Finance

Also called: Loan Closure Certificate, No Dues Letter

A document issued by the lender after a loan is fully repaid, confirming that nothing more is due. The lender must also return the original property documents and release its charge on the property within the time set by the RBI.

Legal basis: RBI directions require regulated lenders to return original documents within 30 days of full repayment, or pay compensation for delay.

Example & agent tip

Example: After the last EMI, Parveen collects the original papers from the bank and the closure letter, then asks the bank to update the charge record.

Agent tip: Collect the closure letter and check that the lender's charge is removed from the property and the central charge registry.

Loan-to-Value (LTV)

Finance

The loan as a percentage of the property's value. RBI limits LTV for housing loans: up to 90% for loans up to ₹30 lakh, 80% for loans of ₹30 to ₹75 lakh and 75% above ₹75 lakh.

Example & agent tip

Example: On a ₹60 lakh flat with an LTV limit of 80%, the bank lends at most ₹48 lakh, and the buyer pays ₹12 lakh from own funds.

Agent tip: Plan the down payment using the LTV limit, not the sale price alone.

Lock-in Period

Investment & Valuation

The initial part of a lease when neither side can end the agreement without paying a penalty.

Example & agent tip

Example: A showroom lease has a 3-year lock-in. If the tenant leaves early, they pay the rent for the remaining months.

Agent tip: Check the lock-in period and penalty in commercial leases.

Related: Lease Deed Pre-Leased Property

Logistics Park

Property Types

Also called: Warehousing Park

A planned complex of warehouses, truck parking, loading docks and support services near highways, ports or rail terminals, used to store and move goods. Modern parks offer high-ceiling, fire-protected, Grade A warehouses on lease to e-commerce and logistics firms.

Example & agent tip

Example: A third-party logistics firm leases 80,000 sq ft in a logistics park near the Delhi-Mumbai corridor for e-commerce storage.

Agent tip: Check truck turning space, dock height, floor load and fire systems. Warehouse buyers test these before they look at rent.

Lok Adalat

Legal

A forum that settles disputes by mutual agreement, with no court fee. Its award has the status of a court decree and cannot be appealed.

Legal basis: Legal Services Authorities Act, 1987.

Example & agent tip

Example: A small property dispute between neighbours is settled at a Lok Adalat in a day.

Agent tip: Suggest Lok Adalat for quick settlements.

Related: Civil Court Mediation

Lokayukta

Authorities

A state ombudsman that investigates complaints of corruption and misuse of power by public officials. Property owners and buyers may complain about bribes sought for approvals, though powers and procedure differ by state.

Legal basis: State Lokayukta laws; also see the Lokpal and Lokayuktas Act, 2013.

Example & agent tip

Example: A buyer complains about an official demanding a bribe to issue a completion certificate.

Agent tip: Keep records of requests and dates. A written complaint with details has more weight.

Long-Term Capital Gains

Tax & Duties

Also called: LTCG

Gain on sale of land or a building held for more than 24 months. For transfers on or after 23 July 2024 the rate is 12.5% without indexation. Resident individuals and HUFs may choose 20% with indexation for property acquired before 23 July 2024.

Example & agent tip

Example: A resident who bought a flat in 2015 and sells it in 2026 can compare 12.5% without indexation with 20% with indexation, and choose the lower tax.

Agent tip: The choice can change the tax by lakhs. Always refer the client to a tax professional with the purchase year in hand.

Lower Deduction Certificate

Tax & Duties

Also called: Section 197 Certificate, Nil TDS Certificate

A certificate from the tax department allowing a payer to deduct tax at a lower rate, or nil, than normally required. A property seller applies for it when the tax on gains will be far lower than the standard deduction rate on the full sale price.

Legal basis: Section 197 of the Income-tax Act, 1961, applied through Form 13; the 2025 Act renumbers it.

Example & agent tip

Example: An NRI selling a flat at a small gain applies for a lower deduction certificate, so the buyer deducts tax on the gain and not on the whole price.

Agent tip: Apply well before the sale closes. Without the certificate, the buyer must deduct at the standard rate.

Lower Parel

General & Places

A central Mumbai area that grew from former textile mill land into a mix of high-rise homes, offices, malls and restaurants. Its development followed changes in mill land rules and redevelopment norms.

Example & agent tip

Example: A consultant looks at an apartment in a former mill compound in Lower Parel, and checks the mill land conversion papers.

Agent tip: For old mill land, check the development permissions and any mill-worker housing obligations through the title report.

Lucknow Development Authority (LDA)

Authorities

The authority that plans and develops Lucknow, including approval of layouts and building plans.

Example & agent tip

Example: A buyer in Lucknow checks LDA approval for a plotted colony.

Agent tip: Check the layout approval and the sanctioned map.

Lal Dora

Lalru

Land Acquisition (RFCTLARR Act, 2013)

Land Banking

Land Dispute Proceedings (BNSS Section 164)

Land Pooling

Land Reforms

Land Settlement (Revenue Settlement)

Land Value Deduction (GST)

Landlord

Landran

Latha (Cloth Map)

Launch Offer

Layout Plan

Lead

Lead Generation

Lead Protection Period

Lead Qualification

Lead Registration

Lease Deed

Lease Rental Discounting

Leasehold Property

Leave and License Agreement

Legal Heir Certificate

Legal Notice

Legal Title Report

Lessee

Lessor

Letter of Intent (LoI)

Leverage

Licensee

Lien

Lift Licence

Limitation Act, 1963

Limitation Period

Link Documents

Lintel

Liquidated Damages

Liquidity Risk (Real Estate)

Lis Pendens

Litigation Check

Load-Bearing Structure

Loading Factor

Loan Against Property (LAP)

Loan Closure Certificate

Loan Closure Letter

Loan-to-Value (LTV)

Lock-in Period

Logistics Park

Lok Adalat

Lokayukta

Long-Term Capital Gains

Lower Deduction Certificate

Lower Parel

Lucknow Development Authority (LDA)

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