Pune Property Glossary 2026 — 80 Real Estate Terms Explained
The Pune property market speaks a language of its own — a dense mix of legal Sanskrit, revenue department terminology, urban planning jargon, and finance acronyms. First-time buyers frequently sign documents without understanding what they mean. This glossary demystifies 80 key terms you will encounter when buying, selling, or renting property in Pune.
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A
Affidavit A sworn written statement of fact, signed before a notary or magistrate. In property transactions, sellers often provide affidavits confirming there are no disputes on the property, or that no other legal heir has a claim. An affidavit is legally binding but not as strong as a court order.
Agreement for Sale (AFS) The primary contract between buyer and seller specifying the sale price, payment schedule, possession date, and terms. Under MahaRERA, this must be registered for projects covered by RERA. Do not confuse with the final Sale Deed — the AFS is an agreement to transact; the Sale Deed actually transfers ownership.
Allotment Letter A developer-issued letter confirming that a specific unit (tower, floor, flat number) has been allocated to you. It is issued after you pay the booking amount. The allotment letter precedes the Agreement for Sale. Do not make further payments without receiving a signed allotment letter.
Amenity Charges Charges collected by the developer (or society) for maintaining common amenities — gym, pool, clubhouse, lift, etc. Not to be confused with maintenance charges (which cover day-to-day operations). Amenity charges are typically one-time or annual.
Appreciation The increase in a property’s market value over time. Pune property in established areas has appreciated at 8–12% annually over the past decade in nominal terms. Real appreciation (adjusted for inflation) is lower but still positive.
B
Balcony / Utility Area RERA defines specific rules on whether balcony area is included in carpet area. Balconies and open terraces are typically excluded from carpet area calculation under RERA but may be charged for separately.
BHK Bedroom, Hall, Kitchen. The universal Indian measure of flat size. 1 BHK = 1 bedroom + living room + kitchen. 2 BHK = 2 bedrooms + living room + kitchen. Studio apartments are sometimes marketed as “0.5 BHK” or “studio” and do not follow this formula strictly.
Building Plan Approval The official approval from PMC, PCMC, or PMRDA of the architect’s drawing showing the building’s footprint, height, unit layout, and setbacks. A building cannot be legally constructed without building plan approval. Under RERA, the approved plan is part of the registered disclosure.
C
Carpet Area Defined under RERA as the net usable floor area of an apartment, excluding the area covered by external walls, areas under service shafts, exclusive balcony area, and exclusive open terrace area. It does include internal walls, partitions, and columns within the flat. This is the most important number when comparing flats — always compare carpet area, not super built-up area.
CC (Completion Certificate) Issued by PMC/PCMC/PMRDA after verifying that the building has been completed as per the sanctioned plan. Different from OC (Occupancy Certificate) — CC confirms completion; OC confirms fitness for occupancy. Both are required for a fully legal property.
Conveyance Deed The legal document that transfers ownership of land from the landowner (or developer) to the housing society. Without a conveyance deed, the society does not legally own the land the building stands on — it remains in the developer’s name. Deemed Conveyance is the legal process by which societies can force conveyance even if the developer delays.
Co-operative Housing Society (CHS) The most common form of residential building management in Pune. Once formed, the CHS owns the building, manages common areas, and collects maintenance. Every flat owner is a member-shareholder. The developer is obligated to help form the CHS within 4 months of majority possession under MahaRERA.
D
Deemed Conveyance A legal remedy under the Maharashtra Ownership Flats Act (MOFA) allowing a housing society to obtain a conveyance order from the District Deputy Registrar if the developer delays executing the Conveyance Deed beyond the legally required period (typically 3 years post-society formation). This protects residents’ long-term land ownership.
Development Agreement A contract between the landowner and the developer authorising the developer to construct and sell units on the land. If the land is owned by a third party (not the developer), this document is critical — it defines what rights the developer has. Request and review this document through your independent lawyer.
Development Charges (DC) Charges levied by PMC/PCMC/PMRDA on a developer for the right to build, contributing to infrastructure development. These are factored into the project cost and ultimately borne by buyers — but are not explicitly itemised in most sale agreements.
E
Earnest Money The initial booking amount (typically 5–10% of the property value) paid to a developer to reserve a unit. It is generally non-refundable if the buyer backs out without cause, but refundable if the developer fails to deliver per the agreement. Under MahaRERA, developers must keep earnest money in a separate RERA escrow account.
Encumbrance Certificate (EC) A document issued by the Sub-Registrar’s office listing all registered transactions on a property — mortgages, sales, gifts, etc. For resale property, always obtain an EC for the past 30 years. A “clear EC” (no encumbrances) is essential before purchasing. Available from the SRO (Sub-Registrar’s Office) or via the Maharashtra government’s online portal.
EODB (Ease of Doing Business) Used in the real estate context to describe PMC/PCMC’s push to streamline building permissions, single-window clearances, and RERA compliance processes. Pune’s PMRDA and PMC have improved EODB scores in recent years, reducing approval timelines.
F
Floor Rise Charges A premium charged by developers for higher floors — typically ₹25–₹100 per sqft per floor above a base floor. Higher floors are preferred for views, ventilation, and prestige, hence the premium. These charges are separately disclosed in RERA-registered agreements.
FSI (Floor Space Index) Also called FAR (Floor Area Ratio). The ratio of a building’s total constructed floor area to the plot area. If FSI is 2.5 and the plot is 1,000 sqm, the builder can construct 2,500 sqm of floor area. Higher FSI = taller buildings and more units per plot. Pune’s PMC has revised FSI rules multiple times, and the current permissible FSI varies by zone, road width, and TDR purchase.
Fungible FSI Additional FSI that can be purchased by paying a premium to the municipal corporation. In Pune, developers use fungible FSI to build taller than the base FSI allows. This paid FSI increases development cost, which is passed to buyers.
G
Gram Panchayat (GP) The local government body for villages. Properties in Gram Panchayat areas (outside PMC/PCMC/PMRDA limits) are governed by GP rules. Construction can be legally done in GP areas but requires NA order, GP permission, and in many cases PMRDA approval. Due diligence is critical — GP properties can be difficult to finance and may lack civic amenities.
GST on Property Under-construction properties attract 5% GST on the purchase price (without input tax credit benefit for the developer). Ready-to-move properties (with OC) attract zero GST. This is a significant factor — on a ₹70 lakh flat, 5% GST = ₹3.5 lakhs. Always confirm with the developer whether the quoted price is inclusive or exclusive of GST.
H
Home Loan Sanction Letter A letter from a bank or NBFC confirming they will lend you a specific amount for a specific property. Distinct from loan disbursement — sanction is the approval; disbursement is the actual payment. Developers often require a sanction letter before executing the Agreement for Sale.
Housing Finance Company (HFC) NBFCs specialising in home loans — HDFC Ltd, LIC Housing, PNB Housing, etc. They often have more flexible underwriting than banks and can approve loans for properties that mainstream banks decline (e.g., some GP properties, properties with older construction).
I
IGBC (Indian Green Building Council) The Indian green building rating body. Projects with IGBC Gold or Platinum certification meet specific standards for energy efficiency, water conservation, and sustainable materials. In Pune, IGBC-rated projects command a 5–8% price premium and attract environmentally conscious buyers.
Index II A certified copy of a registered document issued by the Sub-Registrar’s Office. When you buy a resale property, requesting Index II for the previous transactions helps verify the chain of title — who sold to whom and when. It is a critical document in title verification.
J
Joint Development Agreement (JDA) A variation of the Development Agreement where the landowner and developer share either flats or revenue from the project. Common in Pune where farmers or original landowners partner with developers. The JDA’s structure affects what rights you (as a buyer) receive — your lawyer must review this.
Joint Ownership Property registered in the names of two or more owners. Common for husband-wife purchases (attracts a stamp duty rebate in Maharashtra when a woman is the first owner or co-owner). Joint ownership complicates future sale or inheritance if one owner dies without a will.
K
Khata (or Majumdar) Not commonly used in Pune (more prevalent in Karnataka/Bangalore), but sometimes referenced in old Pune revenue records. The equivalent in Maharashtra is the 7/12 extract and property card.
L
Leave and Licence Agreement The most common rental arrangement in Pune (distinct from a tenancy/lease). A Leave and Licence gives the licensee (tenant) permission to use the property for a fixed period without creating any tenancy rights. Registered L&L agreements (compulsory for 12+ month tenures under Maharashtra law) protect both owner and tenant. The licensee cannot claim tenancy rights under the Maharashtra Rent Control Act.
Loading Factor The ratio of super built-up area to carpet area. Expressed as a percentage — e.g., “35% loading” means if carpet area is 700 sqft, super built-up area is 700 × 1.35 = 945 sqft. In Pune, loading factors in premium projects range from 25–40%. Lower loading = better deal for the buyer.
M
Maintenance Charges Monthly charges collected by the housing society or developer for building upkeep — security, lift maintenance, common area electricity, water tank, gardening, etc. In Pune, maintenance charges in premium projects range from ₹2/sqft to ₹8/sqft per month on carpet area.
MahaRERA Maharashtra Real Estate Regulatory Authority. All residential projects above 500 sqm or 8 units must be registered with MahaRERA. The portal (maharera.mahaonline.gov.in) is publicly accessible and shows project status, developer complaints, RERA certificate, and quarterly updates.
Mutation The process of updating government revenue records (property tax records) to reflect the new owner’s name after a property purchase. In Pune, this is done with PMC/PCMC after registration. Without mutation, the property tax demand continues to come in the previous owner’s name.
N
NA Order (Non-Agricultural Order) An order from the District Collector converting agricultural land to non-agricultural use (residential, commercial, industrial). Essential for development in areas outside municipal limits. Without NA order, construction is technically illegal and financing is impossible through formal channels.
NOC (No Objection Certificate) A document from a relevant authority confirming no objection to a specific action. In property contexts, NOCs are required from: banks (if existing mortgage on the property), society (for resale), fire department, electricity board, and sometimes environment authorities for large projects.
O
OC (Occupancy Certificate) Issued by PMC/PCMC/PMRDA after verifying the building is constructed per sanctioned plan, has fire safety compliance, and is safe for occupation. Under MahaRERA, developers must obtain OC before demanding the final possession payment. Buying a flat without OC means you are moving into a building that has not been officially certified as safe.
Open Offer In listed company acquisitions, not directly relevant to residential real estate. However, in land acquisition contexts, an open offer price is what a developer offers landowners in a negotiated purchase. Buyers should know whether their project land was amicably acquired or disputed.
P
POA (Power of Attorney) A legal document authorising someone else to act on your behalf in property transactions. GPA (General Power of Attorney) was widely misused in Pune’s pre-RERA era to facilitate property sales by non-owners. Today, the Supreme Court has restricted GPA-based sales — full ownership and proper sale deed are required for valid transfers.
Possession Date The date by which the developer commits to handing over your flat. Under MahaRERA, delays beyond this date entitle buyers to interest compensation at SBI’s MCLR + 2%. Always ensure the possession date is clearly stated in the registered Agreement for Sale.
Property Card The primary property ownership record maintained by the City Survey Department in Maharashtra. Shows the property’s survey number, owner details, area, and any encumbrances. Essential in urban Pune (PMC/PCMC) for title verification. The equivalent of a 7/12 extract for agricultural land.
Promoter RERA’s term for the developer or project proponent — the entity legally responsible for the project’s RERA-compliant delivery. The promoter is liable for construction defects for 5 years post-possession.
R
Ready Reckoner Rate (RR Rate / Circle Rate) The minimum price at which property transactions can be registered, set annually by the Maharashtra government. Stamp duty is calculated on whichever is higher — the agreed sale price or the RR rate. In premium areas (Baner, Koregaon Park, Kharadi), RR rates have been revised upward significantly in recent years.
RERA Real Estate (Regulation and Development) Act, 2016. India’s landmark property law that mandates: project registration with the state regulator, 70% of collected funds to be deposited in a dedicated escrow account, mandatory quarterly updates, and 5-year structural defect liability post-possession. Maharashtra’s MahaRERA is one of the best-implemented RERA authorities in India.
Registration (Sale Agreement / Sale Deed) The legal process of recording a transaction at the Sub-Registrar’s Office. The Agreement for Sale (under-construction projects) and the Sale Deed (final ownership transfer at possession) must be registered to be legally valid. Stamp duty and registration charges are paid at this stage.
S
Sale Deed The final legal document that transfers absolute ownership of the property from seller to buyer. Unlike the Agreement for Sale (which is a promise to sell), the Sale Deed is the actual transfer. It must be registered at the Sub-Registrar’s Office and is the most important document in your property file.
Sinking Fund A corpus collected by the housing society from members for long-term capital expenditure — building repainting, lift replacement, water tank repair, etc. Under Maharashtra’s CHS rules, the sinking fund must be maintained separately from maintenance collections. Check if a sinking fund is in place before buying into a resale building.
Society Maintenance Charges Monthly charges levied by the Co-operative Housing Society on flat owners for common area maintenance. Distinct from amenity charges (for specific amenity use). Society maintenance typically covers security, gardening, common lighting, lift AMC, and administrative costs.
Stamp Duty A state government tax on property transactions, calculated as a percentage of the property’s registered value. In Maharashtra (PMC limits): 6% for men, 5% for women as first/sole buyer. In PCMC: 5%. Plus 1% local body tax. Stamp duty is paid on the higher of the agreement value or the Ready Reckoner rate.
Super Built-Up Area (SBUA) The total measured area used to calculate the sale price in many agreements, including the apartment’s carpet area plus proportionate share of common areas (lobbies, stairwells, lift shafts, clubhouse). Not a reliable basis for comparing apartments — always convert to carpet area.
T
TDR (Transferable Development Rights) Rights generated when a landowner surrenders land for public purposes (roads, parks, amenities) to the government. In exchange, they receive TDR certificates that can be sold to developers, who use them to build additional FSI beyond the base permissible limit. TDR affects how tall a building can go. Large projects in Pune often use TDR to achieve higher densities.
Title Deed A general term for the ownership document proving that a person or entity has legal title to a property. In practice, “title deeds” can include: Sale Deed, Conveyance Deed, Gift Deed, Will (if inherited). A clear title means there are no competing ownership claims, litigation, or encumbrances.
U
UDS (Undivided Share) In a multi-storey building, each flat owner has an undivided share of the land on which the building stands — they cannot point to a specific piece of land, but they own a proportionate fraction of the total plot. The UDS percentage should be stated in your Sale Deed. It matters for land value calculations and in the event the building is ever demolished and reconstructed.
Urban Land Ceiling (ULC) An older law (now abolished in Maharashtra) that capped the amount of urban land an individual could own. While the law is abolished, properties with ULC history may still have encumbrances or pending proceedings. Always check with an independent lawyer if the property’s title chain passes through the ULC era.
V
Vastu Shastra Traditional Indian architectural philosophy governing building orientation, room placement, and energy flow. Many Pune buyers specify Vastu-compliant units (north or east facing main door, kitchen in southeast). Developers increasingly market north-east facing units as Vastu-compliant. While not legally relevant, Vastu compliance can affect resale value among certain buyer demographics.
Variation Clause A clause in the Agreement for Sale allowing the developer to vary the carpet area (typically up to 3%) without requiring buyer consent. Under MahaRERA, any variation beyond 3% requires the buyer’s approval and a proportionate price adjustment. Read this clause carefully.
W
Water Connection Permanent municipal water connection (from PMC/PCMC) versus a temporary connection or bore well. For a building to receive a permanent connection, OC is typically required. Many newer Pune projects have interim bore well arrangements during construction — confirm the long-term water supply source.
Z
Zone (Development Zone / CRZ) Mumbai’s CRZ (Coastal Regulation Zone) is not relevant to Pune interior. However, Pune has development zones defined by the Development Plan (DP) — residential, commercial, industrial, green belt, no-development. Buying land or property in a zone not designated for your intended use is a critical error. The local DP map (available with PMC/PCMC planning departments) shows the zoning for every plot.
Glossary Quick Reference by Category
Documents to ask for: Allotment Letter, Agreement for Sale, Sale Deed, Encumbrance Certificate, Index II, NA Order, OC, CC, Conveyance Deed, Property Card
Financial terms: Carpet Area, Loading Factor, Ready Reckoner Rate, Stamp Duty, GST, FSI, TDR, Fungible FSI
Legal/regulatory: RERA, MahaRERA, POA, MOFA, CHS, UDS, Mutation, Deemed Conveyance
Rental-specific: Leave and Licence, Maintenance Charges, Sinking Fund, Society Maintenance
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