Real Estate Glossary | Property Terms Explained | knocKnock

Real Estate Glossary

34+ essential real estate terms explained in simple language. Understand carpet area, RERA, stamp duty, EMI, and everything you need to know before buying your dream home in India.

Area & Measurement

Financial

Stamp Duty

Stamp duty is a state government tax paid during property registration, calculated as a percentage of the property value or market value, whichever is higher.

EMI (Equated Monthly Instalment)

EMI is the fixed monthly payment a borrower makes to repay a home loan, comprising both principal repayment and interest charges.

Home Loan

A home loan is a secured loan provided by banks and financial institutions to purchase, construct, or renovate a residential property, using the property itself as collateral.

Circle Rate / Ready Reckoner Rate

Circle rate (also called guidance value or ready reckoner rate) is the minimum property value set by the government for the purpose of calculating stamp duty and registration charges.

Pre-EMI

Pre-EMI is the interest-only payment made on a home loan during the construction phase of an under-construction property, before full EMI payments begin.

Escrow Account

An escrow account in real estate is a dedicated bank account where 70% of buyer payments must be deposited, as mandated by RERA, to be used exclusively for project construction.

Maintenance Charges

Maintenance charges are the recurring monthly fees paid by apartment owners to cover the upkeep of common areas, amenities, staff salaries, and shared utilities in a housing project.

Registration Charges

Registration charges are the fees paid to the government at the sub-registrar office for legally recording a property transaction in government records.

Floating Interest Rate

A floating interest rate (variable rate) on a home loan fluctuates with market conditions, typically benchmarked to the RBI repo rate or the bank's MCLR/EBLR.

CIBIL Score

CIBIL score is a three-digit credit score (300-900) that indicates your creditworthiness, used by banks to evaluate home loan eligibility and interest rates.

Property Types

Construction

Documentation

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