Home Buyers Guide

A unit of area equivalent to 43,560 square feet or 4,047 square meters approximately. It is a commonly used term for larger land parcels in India.

A letter issued by the developer (private or state development agency) allotting a particular plot or unit in an under development or under construction project. This letter is important in availing loan from banks. It is generally superseded by builder-buyer agreement once that is signed.

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

A party or individual who cosigns a mortgage loan. Co-borrowers are jointly liable with the other borrower for the balance of the loan period. 

A certificate/ statement issued by the local development authority certifying that all necessary works have been completed and that the property is fit for occupation. In case of private development, such certificate can be given by the builder to individual unit owners at the time of possession.

The part of the purchase price of a property that the buyer pays in cash and does not finance with a loan

A report issued by Registrar of Assurances or Sub-Registrar's office after due verification of the relevant documents certifying that the property in question is free from all encumbrances such as loans, leases, easements or restrictions

An interest rate on a loan that remains fixed either for the entire term of the loan or for part of the term and does not increase or decrease with market fluctuations.

An interest rate that is allowed to move up and down with the rest of the market or along with an index.

A situation in which a homeowner is unable to make principal and/or interest payments on his or her property loan, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the loan agreement.

A fee paid to a lender (bank) for processing application of a loan. This fee is charged by the lender to cover its administrative and other application related costs.

The amount of the loan financed as a proportion of the property value, expressed as a percentage.

A certificate issued by the concerned local authority that the plans are in order and conform to the guidelines and rules in force. In other words, the authority concerned has NO OBJECTION to the commencement of construction

A certificate issued by the local development authority certifying that all necessary works have been completed as per the sanctioned plans and that the property is fit for occupation. The OC is issued after clearance from the water, electricity, sewerage, fire fighting authorities etc.

An evaluation of a potential borrower by a lender to determine whether the borrower qualifies for a loan

The amount borrowed or still to be repaid. The part of the monthly payment that reduces the balance of the loan.

The process of paying off one loan with the proceeds from a new loan using the same property as security.

Resale signifies that a property is being sold by the person who was allotted the same property. In other words, when property once purchased is now put on sale by the initial buyer, the property is said to be on resale.

Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property.

An investigation of public records into the history of ownership of a property to check for liens, unpaid claims, restrictions or problems, to prove that the seller can transfer free and clear ownership.

A property which has received all necessary approvals from authorities, raised funds from private investors or financial institutions, appointed the construction contractor and is currently under construction.

Income proof, salary slips and bank statements

ITR, business proof and audited financials

Business ownership documents and financial records