⚡ Quick Answer
Buying a flat in Mumbai comes with its own language. The most important terms fall into five groups: area (carpet, built-up), approvals (MahaRERA, CC, OC), money (stamp duty, GST, floor rise, corpus fund), legal papers (allotment letter, agreement for sale, Index II) and possession (handover, defect liability, society formation).
- Carpet area is the usable floor area inside your walls - RERA prices flats on it.
- MahaRERA registration and the OC are two of the most important checks.
- If a term in any document is unclear, ask before you pay or sign.
The first time you visit a sales lounge or read a cost sheet, you may hear a dozen unfamiliar words in a few minutes – OC, CC, floor rise, PLC, Index II, corpus. Developers, banks, lawyers and channel partners use them every day, and it is easy to nod along without being sure what they mean.
This glossary explains the terms you are most likely to meet when buying a flat in Mumbai, grouped by the stage at which you will hear them. It is general information to help you ask better questions – for legal or tax decisions, speak to a qualified professional.
Area and Layout Terms
| Term | What it means |
|---|---|
| Carpet area | The net usable floor area inside the walls of your flat. Under RERA, flats must be sold on carpet area. |
| Built-up area | Carpet area plus the thickness of walls and some other spaces such as a dry balcony. |
| Super built-up area | Built-up area plus a share of common areas like lobbies and staircases. Older listings often quoted this. |
| BHK | Bedroom, Hall, Kitchen. A 3 BHK has three bedrooms, a living area and a kitchen. |
| Deck / balcony | Open or semi-open areas attached to the flat, often listed separately from carpet area. |
| Floor plan | A drawing of the flat showing rooms, sizes, doors and windows. |
Always compare flats using carpet area, not built-up or super built-up figures.
We go deeper into this in carpet area vs built-up vs super built-up and how to read floor plans.
Approval and Regulatory Terms
- RERA / MahaRERARERA is the national real estate law; MahaRERA is the Maharashtra authority. Projects must be registered and get a MahaRERA number.
- IOD (Intimation of Disapproval)An early planning approval in Mumbai that lists conditions the developer must meet.
- CC (Commencement Certificate)Permission to start construction, often issued in stages.
- OC (Occupation Certificate)Certifies that the building is fit to live in. It is usually needed before residents move in.
- FSI (Floor Space Index)The ratio of total buildable floor area to plot area - it controls how much can be built on a plot.
- TitleLegal ownership of the land. A clear title means no disputes or unresolved claims.
To check a project’s registration, documents and completion date yourself, follow our step-by-step guide on how to verify a project on MahaRERA.
Price, Payment and Cost Terms
| Term | What it means |
|---|---|
| All-inclusive price | Ask what it covers - parking, taxes, deposits or only the base price. |
| Floor rise | An extra charge for flats on higher floors, usually per floor. |
| PLC (Preferential Location Charge) | An extra charge for a preferred position, such as a sea view or a corner flat. |
| Stamp duty and registration | Government charges paid when the agreement for sale is registered. |
| GST | Generally charged on under-construction flats; not on completed flats that already have an OC. |
| Construction-linked plan | You pay in instalments as construction reaches set stages. |
| 20:80 plan | A plan where a part is paid at booking and the rest later, as per the agreement. |
| Corpus fund | A one-time deposit kept for the long-term upkeep of the building. |
| Maintenance charges | Regular charges for running and maintaining the common areas. |
Booking and Legal Document Terms
- EOI (Expression of Interest)An early, usually refundable, sign of interest in a project before formal booking.
- Booking amountThe first payment that reserves a specific flat for you.
- Allotment letterThe developer's letter confirming the flat allotted to you and key terms.
- Agreement for saleThe detailed, registered contract between you and the developer.
- Index IIAn extract from the Sub-Registrar's records showing that your agreement is registered - banks often ask for it.
- EncumbranceAny claim or charge on a property, such as a loan. You want the flat free of these at transfer.
- Power of Attorney (PoA)Authority you give someone to act for you - common for NRI buyers.
See the flat booking process, agreement for sale: key clauses and documents to buy and register a flat for each step in detail.
Home Loan Terms
- Sanction letter – the bank’s approval of your loan amount and terms.
- Disbursement – money the bank pays out, often in stages linked to construction.
- Pre-EMI – interest-only payments on the amount disbursed, before full EMIs begin.
- EMI – the fixed monthly instalment covering interest and principal.
- LTV (Loan to Value) – the share of the property value the bank will lend.
- Co-applicant – a second borrower, such as a spouse, who shares the loan.
Read our home loan guide for premium flats and home loan tax benefits for more.
Possession and After-Purchase Terms
- Possession dateThe date by which the developer agrees to hand over the flat - check it against MahaRERA.
- Handover / snaggingInspecting the flat for defects and listing them before or at possession.
- Fit-out periodA period when you can carry out interiors before moving in.
- Defect liabilityUnder RERA, the developer is generally responsible for fixing structural defects reported within five years of possession.
- Society / association formationForming the residents' body that manages the building.
- Conveyance / deemed conveyanceTransfer of the land and building title to the society. Deemed conveyance is the route when a developer does not do this in time.
Our possession handover checklist and guide to maintenance charges, corpus fund and society formation cover this stage.
Related Guides
- Fire and Lift Safety in Mumbai High-Rises: What Residents Should Know
- Flat Orientation in Mumbai: Sunlight, Breeze and Views Explained
- Buying a flat in Sewri: a complete guide
- Carpet area vs built-up vs super built-up
- MahaRERA explained: how to verify a project
- The flat booking process: EOI, allotment letter and agreement
- L&T The Gateway Sewri MahaRERA Number: P51900054969 and How to Verify It
- L&T The Gateway Sewri Floor Plans: 3 BHK, 4 BHK and 4.5 BHK Carpet Areas
- Occupancy Certificate vs Completion Certificate: What Mumbai Buyers Should Know
- Property Tax in Mumbai: A Simple Guide for Flat Owners
- Legal Due Diligence Before Buying a Flat in Mumbai: A Simple Checklist
- 12 Common Mistakes to Avoid When Buying a Flat in Mumbai
Frequently Asked Questions
What is the difference between carpet area and built-up area?
Carpet area is the usable floor area inside your walls. Built-up area adds the thickness of walls and some other spaces. Under RERA, flats are sold on carpet area.
What is an OC and why does it matter?
An Occupation Certificate confirms the building is fit to live in. It matters for moving in legally, for some home loans and for future resale.
What is Index II?
Index II is an extract from the Sub-Registrar's office showing the registration details of your agreement. Banks and buyers often ask for it as proof of registration.
What is floor rise?
Floor rise is an extra charge some developers add for flats on higher floors, usually calculated per floor. Ask whether it is included in the price you are quoted.
What is a corpus fund?
A corpus fund is a one-time deposit collected for long-term repairs and upkeep of the building, usually handed over to the society once it is formed.
Where can I check the MahaRERA number of L&T The Gateway Sewri?
The MahaRERA registration number of L&T The Gateway Sewri is P51900054969. You can search for it on the official MahaRERA website.
Conclusion: Know the Words, Ask Better Questions
You do not need to be a lawyer to buy a flat, but knowing these terms helps you read cost sheets, compare projects and spot what needs a closer look. Keep this glossary handy during site visits. For questions about L&T The Gateway Sewri (MahaRERA No. P51900054969), enquire now or call +91 80503 63647.
L&T The Gateway, Sewri
MahaRERA No. P51900054969
Get the project details, floor plans and price sheet for 3, 4 and 4.5 BHK residences in Sewri, Mumbai. Our team will call you back.
