Reading Your Brochure and Sale Agreement: Property Terms Explained

Property papers speak their own language, and a buyer in Bangalore has to learn it quickly. The entries below explain the terms that show up from the first brochure to the final registration. For each, the aim is to say what it means, which law or office defines it, and what to ask before paying.

Certificates and Permissions

A project needs a different approval at each stage. Knowing which certificate belongs where tells a buyer what to ask the seller for.

RERA registration number

Projects above the thresholds of the RERA Act must register and be given a number by the state authority. A plot of up to 500 square metres, or a scheme of no more than eight apartments, is exempt. A project's page on the state RERA portal displays approvals, the timeline and progress reports filed each quarter. A project that needs registration may not be advertised or sold before it.

Sanctioned plan

Before work starts, the competent authority approves a bundle of drawings covering the site, the building, the layout and parking, with related permissions. When a flat has been booked, the builder needs that buyer's consent for any change to its plan.

Commencement certificate

Construction may begin in line with the approved plan only when this certificate (the CC) is issued. Permits titled building permit or construction permit are equal to it in the Act.

Completion certificate

Section 2(q) is where the Act defines this one, and it certifies that the entire project matches the approved plan, the layout and the specifications. It should not be confused with the OC, which covers a single building.

OC, the occupancy certificate

Permission from the competent authority to occupy a building is the OC, and section 2(zf) connects it to water, sanitation and electricity. A buyer needs it before taking possession, and a new flat's khata is obtained afterwards.

NOC, the letter of no objection

The NOC is simply a letter stating that its issuer has no objection. Builders collect them from agencies for fire safety, water, electricity and air traffic. One also turns up when a bank that financed the project agrees to release a flat for sale.

Understanding Area Figures

The same flat can be offered as several different sizes. A price per sq ft means little until the size used is known.

Carpet area

Net usable area is how the RERA Act describes it in section 2(k). Partitions between rooms are counted. Outer walls, service shafts, a private balcony or verandah and a private open terrace are left out.

Built-up area

Here the statute is silent. In practice the term means the carpet area together with the external walls and the balcony. As the sum differs between builders, comparisons built on it are shaky.

Super built-up area

Add the flat's share of common spaces, such as lobbies, stairs, passages, lift shafts and the clubhouse, and the result is the saleable area. A Bangalore price list normally applies its rate to this figure.

Loading

Loading measures how much of the saleable area is not carpet, usually as a percentage. Picture a flat sold as 1,200 sq ft with a carpet of 840 sq ft, which carries 360 sq ft of loading. Equal saleable areas may hide quite different amounts of usable room.

Undivided land share

A UDS is a flat owner's portion of the plot beneath the building. Fences do not mark it, and all the owners hold it together. The deed of sale records the share, which counts most when the building is redeveloped.

Floor space index

FSI, or FAR, comes from dividing the permitted floor area on a plot by the plot area. Rules link it to the size of the plot and the road width. It limits how much a builder can put up, and hence how dense the project becomes.

Title, Contract and Records

Four documents and entries support every ownership claim.

Agreement for sale

In this contract the promoter undertakes to hand over a flat and the buyer undertakes to pay for it, with the price, payment schedule and possession date written in. As per section 13 of the Act, no more than 10% of the cost may be taken until the contract is signed and put on the register.

Sale deed

This registered document hands over ownership, and the RERA Act refers to it as a conveyance deed. Where no local rule sets a time limit, the promoter should complete the execution in three months from the OC date.

Khata and its digital form

The civic body keeps the khata as its tax register for a property, noting owner, size and location. It backs up ownership but cannot replace the title deed. The electronic form is the e-khata, which city corporations use to register sales.

Encumbrance certificate

An EC is a printout of recorded dealings in a property over a time span the buyer names. Karnataka issues it through its stamps and registration office, as Form 15 when entries exist and Form 16 when none do. Entries cover sales, loans against the property and their releases. Court cases and unregistered dealings fall outside it.

What the Government Charges

These are Karnataka's rates for October 2026.

Guidance value

Each area has a minimum value fixed by the state. If a flat is sold below that figure, duty and fees are still paid on the guidance value, and when the price is higher the price is used.

Stamp duty

The duty on a sale deed starts at 2% and moves to 3% once the value passes Rs. 20 Lakhs. Above Rs. 45 Lakhs the rate is 5%. The state also adds a 10% cess and a 2% surcharge calculated on the duty, which brings the highest band to 5.6%.

Fee for registration

Recording the deed with the sub-registrar costs 2% of the value, up from 1% before 31 August 2025. A purchase's upfront cash, with both charges added, can be estimated on our EMI calculator.

Green Building Ratings

Newer projects often quote a green certificate in their sales material.

Green Homes rating by IGBC

The Green Homes scheme of the Indian Green Building Council awards points for planning the site, conserving water, using energy efficiently, selecting materials and the quality of indoor spaces. Buildings land in one of four bands, from Certified up to Platinum via Silver and Gold, and all bands carry mandatory conditions.

A Short List to Ask For

Put these items to the seller in writing, ahead of a booking payment.

• The flat's carpet area in sq ft and its loading
• The RERA number with the finish date filed
• When the plan was sanctioned and the commencement certificate granted
• The OC and khata, if the flat is ready
• An encumbrance certificate, and any lender's NOC for the project
• Duty and registration fee on the whole price

Written replies make projects comparable and give a lawyer the basis for a title opinion. Should one of our listed projects interest you, the contact page is where to ask for these details.