Property Glossary

Below, is a comprehensive list of Real Estate terms, which will be updated regularly. Readers are encouraged to become familiar with the terminologies used in context of Real Estate Transactions.

An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. Debt is a form of liability.

A legal claim against a property that must be paid off when the property is sold.

The amount of loan an individual is eligible based on the net salary he earns.

A fee paid to a bank to process a loan application. This fee is charged by the bank to cover its administrative and other application related costs.

Loan servicing is the process by which a bank collects interest, principal and escrow payments from a borrower.

When a buyer books an under construction property with a builder, some builders put the lock-in clause which means that the buyer cannot sell the property for a particular time period or till the handover. Such time period is known as lock-in period.

A type of construction contract requiring the general contractor to complete a building or project for a fixed cost normally established by competitive bidding. The contractor absorbs any loss or retains any profit.