RERA Glossary - Builder & Property Terms in Plain English

Buying a flat in India means learning a new language. The builder's brochure talks about super area and PLC. The agreement talks about the allottee, the promoter and force majeure. The bank talks about tripartite agreements and pre-EMI. And if anything goes wrong, the RERA order talks about Section 18, the adjudicating officer and a recovery certificate. Most buyers pick up the words as they go, often after they've already signed something they didn't fully understand.

This glossary explains the terms you're most likely to meet, in plain English, with a note on why each one matters to you. We've grouped them by theme rather than strictly alphabetically, so that related terms sit together. Where a term has a legal definition in the Real Estate (Regulation and Development) Act, 2016, we've mentioned the section. Where states use different words for the same thing, we've noted that too.

The law and the people

RERA. Short for the Real Estate (Regulation and Development) Act, 2016, and also used for the state authority set up under it, as in "UP RERA" or "Haryana RERA". Most of the Act came into force on 1 May 2017. Our guide on what RERA is explains the basics.

Real Estate Regulatory Authority. The body in each state that registers projects and agents, hears complaints and enforces the Act. Some states have more than one bench, for example Haryana has authorities at Gurugram and Panchkula.

Promoter. The legal term for the builder or developer, defined in Section 2(zk). It's wide: it can include the landowner in a joint development, a development authority that sells plots, and anyone who builds or causes a building to be built for sale. Why it matters: your complaint is against the promoter, and if the landowner is also a promoter, it can be liable too.

Allottee. You, the buyer. Section 2(d) defines it as the person to whom a plot, apartment or building has been allotted, sold or transferred by the promoter, and it includes someone who later acquires the unit through sale or transfer. It doesn't include a tenant.

Real estate agent. A broker, property dealer or channel partner who is paid to help sell units in a project. Agents selling registered projects must register with RERA themselves. See our guide on agent registration.

Real estate project. The development of a building, a group of buildings or plots for sale, including the common areas and development works. Each phase of a phased project counts as a separate project.

Ongoing project. A project that was still under way, without a completion certificate, when RERA came into force on 1 May 2017. Ongoing projects had to register, and buyers in them can use RERA. See our guide on projects that started before 2017.

Association of allottees. The residents' welfare association (RWA), apartment owners' association (AOA), co-operative housing society or similar body formed by buyers to manage the building once it's handed over. The name varies by state.

Competent authority. The government body that approves plans and issues certificates, such as a development authority (Noida Authority, GMDA, DDA), a municipal corporation or town planning department.

Adjudicating officer. An officer appointed under Section 71 to decide claims for compensation. The authority itself decides refund and interest; compensation for other losses goes to the adjudicating officer.

Appellate tribunal. The Real Estate Appellate Tribunal in each state, which hears appeals against orders of the authority and the adjudicating officer. Appeals go there within 60 days under Section 44.

Areas and measurements

Carpet area. The net usable floor area of your flat, inside the walls, excluding the external walls, service shafts, exclusive balconies or verandahs and exclusive open terraces, but including the internal partition walls. Defined in Section 2(k). Under RERA, flats must be sold on carpet area. See our guide on carpet area vs super area.

Built-up area. Carpet area plus the thickness of the walls, and often the balcony. Not defined in RERA, and builders measure it differently.

Super area, or super built-up area, or saleable area. Built-up area plus a share of the common areas such as lobbies, staircases, lift wells and sometimes the clubhouse. Before RERA, most flats were priced on super area, which could be 25% to 40% more than carpet area. Why it matters: a "1,500 square foot" flat on super area might have a carpet area of only about 1,000 square feet.

Loading. The difference between super area and carpet area, expressed as a percentage. A high loading means you're paying for a lot of space you don't occupy.

Exclusive balcony or verandah area. Balcony space that belongs only to your flat. RERA requires it to be shown separately from carpet area.

Exclusive open terrace area. An open terrace attached to your flat for your use only. Also shown separately.

Common areas. The parts of the project shared by all buyers: land, staircases, lifts, lobbies, corridors, parks, parking areas (other than allotted garages), water tanks, community facilities and so on. Defined in Section 2(n). They belong to the buyers together and must be handed over to the association.

FAR or FSI. Floor area ratio or floor space index. The ratio of the total floor area that can be built to the area of the plot, as allowed by the planning rules. Why it matters: if a builder buys extra FAR and adds floors, that may change the sanctioned plan, which needs your consent under Section 14.

Garage. Under RERA, a place within a project with a roof and walls on three sides for parking a vehicle, but not an unenclosed or uncovered parking space such as open parking areas. Open parking is generally a common area and builders aren't supposed to sell it separately.

Certificates and approvals

Building plan or sanctioned plan. The plan of the building approved by the competent authority. The builder must build according to it.

Layout plan. The plan of the whole project: towers, roads, parks, amenities and open spaces.

Commencement certificate. Permission from the competent authority to begin construction. Called by different names in different places.

Completion certificate (CC). A certificate from the competent authority that the building has been completed according to the sanctioned plan. Defined in Section 2(q).

Occupancy certificate (OC). Permission from the competent authority to occupy the building, confirming that it's fit to live in and has the required services. Defined in Section 2(zf). In some states the CC and OC are combined or the terms are used interchangeably. Why it matters: a possession offer without an OC generally isn't valid under RERA. See our guide on possession without OC.

Part OC. An occupancy certificate for part of a project, such as one tower. Builders often offer possession tower by tower on this basis.

Fire NOC. A no-objection certificate from the fire department confirming that the building's fire safety systems meet the rules. Usually needed before the OC.

Environmental clearance (EC). Approval needed for larger projects under environmental law before construction begins.

RERA registration number. The number the authority gives a registered project. It must appear in every advertisement. You can look it up on the state RERA website. See our guide on checking registration.

Quarterly progress report (QPR). The update builders must upload to the RERA website every quarter, showing bookings, approvals and construction progress. Useful evidence if you claim delay.

Documents you sign

Application form or booking form. The first form you sign when booking, often with a token amount. Under Section 13, the builder can't take more than 10% of the cost as an advance or application fee without first signing a registered agreement for sale.

Allotment letter. The builder's letter confirming that a particular unit has been allotted to you. Defined in Section 2(c).

Agreement for sale, or builder-buyer agreement (BBA), or flat buyer agreement. The main contract between you and the builder, setting out the price, payment plan, possession date, specifications and each side's obligations. Defined in Section 2(c). After RERA it must follow the model agreement in the state rules and be registered.

Tripartite agreement. An agreement between you, the builder and your bank or housing finance company, usually for a home loan on an under-construction flat. It typically lets the bank pay the builder directly and gives the bank rights over your flat. In subvention schemes, it's where the builder's promise to pay interest often sits. See our guide on subvention schemes.

Possession letter or offer of possession. The builder's letter saying your flat is ready and inviting you to take possession, usually with a final demand. It should come with an OC.

Handover certificate or possession certificate. The document signed when you actually take possession, recording the date.

Conveyance deed, or sale deed, or sub-lease deed. The registered document that transfers ownership of the flat to you. On leasehold land, such as most of Noida and Greater Noida, it's a sub-lease deed. Under Section 17 the builder must execute it within the period set by local law or three months from the OC. Until it's registered, you aren't the legal owner. See registry delays.

Undertaking or indemnity. A document some builders ask you to sign at possession, saying you have no claims. Be careful. The Supreme Court has said such documents don't stop you claiming delay compensation, but it's better not to sign them, or to sign only with a written reservation of your rights.

Power of attorney (POA). A document authorising someone else to act for you, for example to take possession or sign the conveyance deed while you're abroad. Note that in Suraj Lamp and Industries v. State of Haryana (2011) the Supreme Court held that a sale through a general power of attorney, agreement to sell and will doesn't transfer ownership; a registered conveyance does.

Money and payments

Basic sale price (BSP). The base price of the flat, usually quoted per square foot (now per square foot of carpet area).

Preferential location charges (PLC). Extra charges for a unit with a better location, such as park-facing, corner, or on a preferred floor.

EDC and IDC. External development charges and infrastructure development charges, paid by builders to the government for roads, sewerage and other infrastructure outside the project, and passed on to buyers. Common in Haryana. Why it matters: if the builder collected EDC from you but didn't pay it to the government, that can cause problems with the OC.

Club membership charges, power backup charges, IFMS. Separate charges often added to the price. IFMS, or interest-free maintenance security, is a deposit for future maintenance that should eventually be transferred to the association.

Construction-linked plan (CLP). A payment plan where you pay instalments as construction reaches set stages. Under RERA, the 70% project account rule means the builder can withdraw buyers' money only in proportion to progress.

Down payment plan. Paying most of the price upfront, usually for a discount. Riskier if the project is delayed.

Subvention scheme, 20:80 scheme, no pre-EMI scheme. A scheme where you pay a small part upfront, the bank pays the builder most of the loan, and the builder pays the interest until possession. When the builder stops paying, the bank usually chases the buyer.

Pre-EMI. Interest-only payments on a home loan before full EMIs start, typically while the flat is under construction.

Escalation charges. An increase in price claimed by the builder because construction costs went up. Usually not allowed unless the agreement clearly permits it, and RERA authorities look at such demands closely. See illegal extra charges.

Holding charges. Charges some builders demand if a buyer doesn't take possession promptly after a valid offer. The Supreme Court has disallowed holding charges in some cases where the builder hadn't suffered a loss. Their legitimacy depends on the facts and the agreement.

Earnest money and forfeiture. The part of the price a builder may keep if the buyer cancels. Builders' agreements often allowed forfeiture of 15% to 25%. Courts and RERA authorities usually limit reasonable forfeiture to around 10% of the basic price, and the model agreement in many states caps it.

70% account, or separate account, or RERA account. The bank account into which 70% of buyers' money must be deposited and used only for that project's construction and land cost, under Section 4(2)(l)(D).

Delay, possession and defects

Due date of possession. The date by which the builder promised to give you possession, as stated in your agreement. Delay is counted from this date, sometimes after a grace period.

Grace period. An extra period, often three or six months, that some agreements allow the builder beyond the due date before delay compensation starts.

Delay interest, or delay possession charges (DPC). Interest the builder must pay you for every month of delay if you choose to stay in the project, under the proviso to Section 18(1). See our guide on refund vs delay interest.

Refund with interest. If the builder fails to give possession on time, you can withdraw and get back everything you paid, with interest, under Section 18(1). The Supreme Court described this right as unconditional in Newtech Promoters (2021).

Prescribed rate of interest. The rate set in the state rules for refunds and delay interest, usually the SBI marginal cost of lending rate (MCLR) plus 2%. Under Section 2(za), the rate the builder charges you for late payment must be the same as the rate it pays you. See our guide on RERA interest.

MCLR. Marginal cost of funds based lending rate, the benchmark rate SBI publishes. Most RERA interest rates are linked to SBI's highest MCLR.

Force majeure. An event beyond anyone's control, such as war, flood or earthquake, that may excuse a delay. Under RERA it's narrowly defined. COVID-19 was treated as force majeure for a limited period. See our guide on force majeure.

Snag list. A written list of defects you find when inspecting your flat before possession, given to the builder to fix. See our possession checklist.

Defect liability period. Under Section 14(3), the builder must fix structural defects and defects in workmanship, quality or services reported within five years of possession, within 30 days and free of charge.

Handover of common areas. The transfer of the common areas, documents, plans and maintenance funds from the builder to the association of allottees, required under Sections 11 and 17.

Maintenance charges. Monthly charges for running the building and common areas, collected first by the builder or its agency and later by the association. Under Section 11(4)(d), the builder is responsible for providing and maintaining essential services at reasonable charges until the association takes over.

Disputes and remedies

Complaint under Section 31. The application you file with the RERA authority or adjudicating officer against a builder, agent or buyer. See our guide on documents for a complaint.

Compensation under Section 71. A claim for losses, such as rent paid, mental agony or lost opportunity, decided by the adjudicating officer.

Suo motu. Action the authority takes on its own, without a complaint.

Interim order. A temporary direction pending the final decision, for example restraining a builder from selling a disputed unit. The authority can pass interim orders under Section 36.

Pre-deposit. Under Section 43(5), a builder appealing against an order to pay a buyer must first deposit at least 30% of the penalty, or the full amount payable to the buyer, with the tribunal before the appeal is heard.

Recovery certificate (RC). If a builder doesn't pay under a RERA order, the authority can issue a certificate under Section 40 for recovery as arrears of land revenue, executed by the district collector. See our guide on orders not complied with.

Execution. The process of enforcing an order, through a recovery certificate, attachment of the builder's assets or bank accounts, or other steps.

Consumer commission. District, state and national consumer forums under the Consumer Protection Act, 2019. Buyers can choose these instead of RERA, as the Supreme Court confirmed in Imperia Structures (2020). See RERA or consumer court.

Limitation. The time limit for filing a case. RERA has no fixed limitation period for complaints, though delay can matter. Appeals to the tribunal must be filed within 60 days. Consumer complaints must generally be filed within two years. See our guide on how long a complaint takes.

Group complaint. A complaint filed together by several buyers of the same project. Cheaper, and can carry more weight.

Unfair trade practice. Misleading statements or advertising by a builder or agent, described in the explanation to Section 7 (as a ground for revoking a project's registration) and applied to agents by Section 10. Can lead to penalties and compensation.

Insolvency terms

IBC. The Insolvency and Bankruptcy Code, 2016, the law under which an insolvent builder company's affairs are resolved.

NCLT. The National Company Law Tribunal, which hears insolvency cases against companies. Appeals go to the NCLAT.

CIRP. Corporate insolvency resolution process, the process under the IBC that tries to rescue the company, for example by finding a new developer to finish the project.

Moratorium. A freeze on legal proceedings against the company once insolvency starts, under Section 14 of the IBC. It usually stops RERA complaints and execution against the builder.

IRP and RP. Interim resolution professional and resolution professional, the insolvency professionals who take over management of the company during the process.

Financial creditor. Since 2018, home buyers are treated as financial creditors of an insolvent builder, as the Supreme Court upheld in Pioneer Urban Land v. Union of India (2019).

Committee of creditors (CoC). The body of financial creditors, including home buyers through their representative, that votes on the resolution plan.

Authorised representative. The insolvency professional who represents home buyers as a class in the CoC and votes on their instructions.

Form CA. The claim form home buyers file in a builder's insolvency. See our guide on builder insolvency.

Resolution plan. The proposal, approved by the CoC and the NCLT, for completing the project or settling claims. Claims not covered by an approved plan are generally extinguished, following Ghanashyam Mishra (2021).

Liquidation. If no plan is approved, the company's assets are sold and the money is distributed. Home buyers often recover little.

A few terms that sound alike

Some pairs cause particular confusion.

• OC and CC. Related but not always the same. The CC confirms completion according to plan; the OC permits occupation. Ask for the OC.
• Agreement for sale and sale deed. The agreement for sale is a promise to sell in future. The sale deed or conveyance deed is the actual transfer of ownership. Only the second makes you the owner. The Supreme Court said in Suraj Lamp (2011) that an agreement to sell doesn't by itself transfer title.
• Refund and delay interest. A refund means leaving the project and getting your money back with interest. Delay interest means staying and being paid for the delay. You can't have both for the same period.
• Authority and adjudicating officer. The authority decides refunds, interest and compliance. The adjudicating officer decides compensation for other losses.
• Registration of the project and registration of the agreement. The first is the builder registering the project with RERA. The second is registering your agreement for sale with the sub-registrar, under the Registration Act. Both matter.
• Garage and parking. A covered garage can be sold. Open parking is generally a common area. In Nahalchand Laloochand v. Panchali Co-operative Housing Society (2010), the Supreme Court held, under Maharashtra law, that stilt parking is a common area and can't be sold separately as a flat. RERA's definitions point the same way.
• Super area increase and carpet area increase. Builders sometimes claim more money because the super area went up, even though your carpet area didn't change. Under RERA, the price follows carpet area, and an increase must be justified.

How to use this glossary

Keep it next to your agreement when you read it for the first time, or when you get a demand letter you don't understand. If a word in a builder's letter isn't here, ask the builder to explain it in writing. Builders sometimes use unfamiliar terms precisely because buyers won't question them. And if you're unsure what a clause means for you, take advice before you sign or pay. Most of the disputes we see could have been avoided, or would have been much simpler, if the buyer had understood one or two of these terms at the start.

The bottom line

The property market has its own language, and builders are fluent in it. You don't need to be a lawyer to understand your rights, but knowing what carpet area, OC, conveyance deed, delay interest and recovery certificate mean puts you on a much more equal footing. If you'd like help with a specific problem, our RERA complaint service is a good place to start.

Frequently asked questions

What does allottee mean under RERA?

The buyer. Section 2(d) defines an allottee as the person to whom a plot, apartment or building has been allotted, sold or transferred by the promoter, including a later buyer, but not a tenant.

Who is a promoter under RERA?

The builder or developer, defined widely in Section 2(zk). It can include a landowner in a joint development and a development authority that sells plots.

What is the difference between carpet area and super area?

Carpet area is the usable area inside your walls. Super area adds walls and a share of common areas. RERA requires sale on carpet area.

Is an OC the same as a CC?

Not always. A completion certificate confirms the building was completed as planned; an occupancy certificate permits it to be occupied. In some states the terms overlap. Ask for the OC.

What is a conveyance deed?

The registered document that makes you the legal owner. On leasehold land it's a sub-lease deed. The builder must execute it under Section 17.

What is a recovery certificate?

A certificate issued under Section 40 when a builder doesn't pay under a RERA order, allowing recovery as arrears of land revenue through the district administration.

What is the prescribed rate of interest?

The rate set in your state's RERA rules, usually SBI's MCLR plus 2%. It applies to refunds and delay interest, and to interest the builder charges you for late payment.

This glossary explains common real estate and RERA terms in general language. Legal definitions are set out in the Real Estate (Regulation and Development) Act, 2016 and state rules, and the same term can be used differently in different states and agreements. This isn't legal advice; check your own documents and take advice on specific questions.