A checklist of the terminology that drives the real estate industry now-a-days Property transactions are most difficult to crack. Many nerve-wrecking sessions of serious discussions go into clinching a deal. But what many can't understand is the property jargon or the terms used most frequently. Here's a look at the terminology.

Agent/Broker/Consultant: A person who brings together owners and proposed buyers or tenants.

Agreement of sale: A contract in writing generally on stamp paper to enter into a sale under agreed terms and conditions. The content includes description of the property, amount agreed upon, payment terms, possession date, eventualities under which the agreement could be cancelled and penalties or compensation if any for cancellation. An agreement ought to be registered at the registrar's or sub-registrar's office for it to gain legal validity.

Authority letter: A letter on authorizing someone to collect, deliver or represent on your behalf. Generally an authority letter does not give any signing authority to enter into any property buying, selling or leasing.

Builder: A person who constructs the property on behalf of the developer.

Brokerage: Commission paid to a broker for a successful real estate transaction. Generally this is two per cent for sale/purchase of property and one month rent for leasing of property.

Built-up area: Includes carpet area, wall thickness and balcony.

Carpet area: It is the super built-up area minus thickness of walls and proportionate share of common area.

Clear title: A title of a property free of claims or legal questions about ownership.

Completion certificate: A certificate issue by the local civic body authority stating the property has been built as per sanctioned plan and is completed.

Condominium: A building or a structure of two or more units, interior space of which is individually owned and the balance (both land and building) is owned in common by owners of individual units.

Conveyance: A stamped and registered document transferring title to land from one person to another.

Depreciation: A decline in property value brought about by age, physical deterioration or economic obsolescence.

Developer: An entrepreneur who has an interest in a property, initiates its development and ensures that it is carried out (for occupation, investment or dealing) and accepts the responsibility of getting clearances.

Escalation clause: In case of lease agreements, it involves an increment in the base rent at every renewal and is generally a percentage rate that is either pre-agreed or negotiated before the renewal of the agreement.

Floor space index (FSI): Maximum amount of construction allowed on a given plot of land. This depends on the plot area and varies from one locality to another based on factors such as road width. It is expressed as a ratio or the total built-up area to total area of the plot of land.

Force majeure: A force, which cannot be resisted. It includes acts of God like flood, earthquake and fire and acts of man like riots, arson and civil commotion.

Lease agreement: A written stamped agreement (preferably registered) between the person giving out property (landlord) and the person taking it (tenant) which allows the tenant to use and control the property for a specified duration. In this, the landlord is lessor and the tenant is lessee.

Leave and license agreement: A contract in writing (generally on stamp paper) to enter into a lease under agreed terms and conditions. The content includes description of the property, amount agreed upon as lease rent/license fees, payment schedule, present condition of the property, eventualities under which the agreement could be cancelled and penalties or compensation if any for cancellation.

Memorandum of understanding: A commitment to buy, sell or lease a property under certain terms and conditions.

Mortgage: Placing the interest in freehold or leasehold property as security for a loan and with provision for redemption on repayment of the loan. The lender (mortgagee) has powers of recovery in the event of default by the borrower (mortgagor).

Occupation certificate: The occupation certificate is given after connections like plumbing, drainage and electricity wiring are given from the main lines to the utilities. The certificate states that the property is fit for human habitation.

Outgoing costs or outgoings: Expenses incurred by the owner of a property for repairs and maintenance, society/welfare association charges, property management and taxes. These are usually calculated on a yearly basis and payable proportionately every month.

Patwari: Usually denotes the person appointed by a local government or land authority to maintain and update land ownership records for a specific area as well as to undertake collection of land taxes.

Power of attorney: A written authorization by one person to another person authorizing the second person to act on behalf of the first person and sign agreements, receipts or enter into commitments.

Registration: Refers to the recording of the contents of a document with the registrar's or sub-registrar's office. A registration fee needs to be paid to the registering authority. Sale deed, agreement to sell, agreement to lease, power of attorney and wills should be registered for the safety of both parties.

Stamp duty: A kind of fee or tax collected by the government on every document by which any right, title, interest or liability is created or transferred or extended or extinguished or recorded.

Super built-up area: The aggregate superficial area of a building taking each floor into account. This includes external walls and projections, internal walls and partitions, columns, piers, stairwells, lift wells, tank and plant rooms.

Title report: A report that gives the result of investigation into the title of land over a period of 30 years. It basically ensures the marketability of the land.

Urban land ceiling and regulation act (ULCRA): A legislation promulgated in 1976 as a social equity measure to curb profiteering and hoarding in urban land market as well as prevent urban congestion.

Vaastu shastra: A traditional Indian architecture and design system which relies in harmonizing any real estate development with five elements of Indian mythology namely air, water, earth, fire and space.