Mohali Real Estate Glossary: 65 Terms Every Property Buyer Must Know Before Signing Anything

The Mohali real estate glossary is a comprehensive collection of terms used in the Punjab property market, covering everything from regulatory acronyms like GMADA and RERA to financial charges such as EDC and IDC. Understanding these 65 terms is essential for any buyer to avoid legal pitfalls, hidden costs, and documentation errors. In Mohali, specific local regulations from the Greater Mohali Area Development Authority (GMADA) and the Punjab Urban Development Authority (PUDA) govern how properties are sold, transferred, and taxed. This guide simplifies complex jargon into plain English, ensuring you know exactly what you are signing before you commit your hard-earned capital. Whether you are an NRI investor, a local homebuyer, or a land seller reinvesting a government payout, this master reference serves as your foundational tool for navigating the Mohali real estate landscape with confidence and clarity.

Section 1: Regulatory and Government Bodies

Navigating the real estate market in Mohali requires a clear understanding of the authorities that govern land use, approvals, and transfers.

1. GMADA (Greater Mohali Area Development Authority): The primary development authority for Mohali. It handles land allotment, colony licensing, and maintains property records within its jurisdiction.
2. PUDA (Punjab Urban Development Authority): The apex body for urban development in Punjab. It oversees colony licensing outside GMADA limits and handles Change of Land Use (CLU) approvals.
3. RERA Punjab (Real Estate Regulatory Authority): The state regulator that ensures transparency and protects buyers. Every project with more than eight units or 500 square meters must be registered here.
4. PSPCL (Punjab State Power Corporation Limited): The body responsible for electrical connections and load sanctions. Getting separate meters for multi-floor buildings is a critical step for modern Mohali floors.
5. Municipal Committee (MC): Local government bodies that handle building plan sanctions, property tax collection, and mutations in areas within city limits.
6. Forest Department (Punjab): Authorities that provide environmental clearances. Many projects near the Shivalik foothills or green belts require specific No Objection Certificates (NOCs) from this department.
7. Revenue Department: The government wing that maintains land ownership records (Jamabandi) and handles the registration of sale deeds at the Tehsil level.

Section 2: Core Property Types and Land Classifications

The type of property you buy determines your rights and the transfer process required.

8. Freehold Property: A property where the owner has complete ownership of the land and the structure forever, with no time limit on the title.
9. Leasehold Property: Ownership for a fixed period, usually 99 years, after which the property reverts to the lessor unless the lease is renewed.
10. Agricultural Land: Land designated for farming. In Punjab, purchasing agricultural land involves specific restrictions, especially for NRIs who require RBI permission for such acquisitions.
11. Industrial Plot: Land zoned for manufacturing or industrial use. These are categorized into Red, Orange, and Green zones based on the environmental impact of the industry.
12. Commercial SCO (Shop-cum-Office): A multi-storey building where the ground floor and basement are used for retail, while upper floors are designated for offices.
13. Booths: Small commercial units, typically single-storey, found in sector markets for small retail businesses.
14. Double Storey Shops (DSS): Commercial units with two levels, common in older Mohali sectors and established markets.
15. Residential Plot: A piece of land intended for building a private house.
16. Built-up House: A ready-to-move-in independent house or villa.
17. Floor (Stilt+4): A popular housing format in Mohali where a building has a parking level (stilt) and four independent residential floors above it.

Section 3: Planning, Approvals, and Development

Before a single brick is laid, a developer must navigate a complex web of approvals.

18. CLU (Change of Land Use): Permission granted by the government to change the usage of land from agricultural to residential, commercial, or industrial.
19. Layout Plan Approval: The official approval of the project design, including road widths, parks, and utility placements, by GMADA or PUDA.
20. Building Plan Sanction: Approval of the specific architectural drawings for a structure, ensuring it meets local bylaws and safety standards.
21. OC (Occupation Certificate): A document issued by the local authority certifying that the building is safe for habitation.
22. CC (Completion Certificate): Issued when the entire project is completed according to the approved plans and all conditions of the license are met.
23. FAR (Floor Area Ratio): The ratio of the total built-up area to the size of the plot. Recent increases in FAR across Mohali have allowed for more vertical construction.
24. Loading Factor: The difference between the super built-up area and the carpet area. In Mohali, a loading factor of 25% to 30% is considered standard.
25. EDC (External Development Charges): Fees paid by the developer to the government for peripheral services like main roads, water supply, and sewerage.
26. IDC (Infrastructure Development Charges): Charges for major state-level infrastructure projects like highways and bridges.
27. License to Develop Colony: The foundational permission required by a private developer to create a residential or commercial township.

Section 4: Financial and Taxation Terms

Understanding the math behind the deal prevents nasty surprises during registration.

28. Circle Rate (Collector Rate): The minimum price set by the government for property registration in a specific area. It is revised periodically by the Deputy Commissioner.
29. Market Rate: The actual price at which properties are being bought and sold, which is often higher than the circle rate.
30. Stamp Duty: A tax levied by the Punjab government on the transfer of property. Currently, this is approximately 6% of the transaction value or circle rate, whichever is higher.
31. Registration Fee: A fee paid to the government for recording the sale deed, typically 1% of the property value.
32. Mutation (Intkal): The process of updating the ownership records in the government's revenue register after the sale deed is registered.
33. Property Tax: An annual tax paid to the Municipal Committee based on the property's size, location, and usage.
34. NDC (No Dues Certificate): A document confirming that all government dues, including property tax and electricity bills, have been cleared by the seller.
35. Possession Letter: A formal letter from the developer or seller handing over the physical control of the property to the buyer.
36. Conveyance Deed: The legal document that transfers the title of the property from the developer or authority to the buyer.
37. Sale Deed (Registry): The final document executed at the Sub-Registrar's office that legally records the sale of the property.
38. Agreement to Sell (ATS): A preliminary contract outlining the terms and conditions of the future sale, usually signed when the initial payment is made.
39. Earnest Money (Bayana): The initial deposit paid by the buyer to the seller to show a serious intent to purchase.
40. Escrow Account: A neutral account where funds are held during the transaction process to ensure both parties meet their obligations.
41. TDS (Tax Deducted at Source): The tax a buyer must deduct from the payment to the seller. For NRIs selling property, the long-term capital gains TDS rate is 22.66%.
42. Capital Gains Tax: Tax on the profit made from selling a property. Sections like 10(37) and 54F of the Income Tax Act offer specific exemptions for land sellers and reinvestors.
43. Capital Gains Account Scheme: A bank account where you can park sale proceeds to save on tax while you decide on a reinvestment property.

Section 5: Area and Space Definitions

The industry uses different measurements for area, and knowing the difference is vital for price comparison.

44. Carpet Area: The actual usable area within the walls of the apartment, excluding the thickness of inner walls.
45. Built-up Area: The carpet area plus the area covered by the thickness of the walls and the balcony.
46. Super Built-up Area: The built-up area plus a proportionate share of common areas like lobbies, lifts, and corridors.
47. Common Areas: Spaces shared by all residents, including stairs, gardens, clubhouses, and security cabins.
48. Loading: The percentage of space added to the carpet area to calculate the super built-up area. If loading is above 35%, it is often a red flag for buyers.
49. Efficiency Ratio: The percentage of the super built-up area that is actually usable as carpet area.

Section 6: Legal and Transactional Jargon

These terms often appear in the fine print of builders' agreements and legal documents.

50. PLC (Preferential Location Charges): Extra fees for units with better locations, such as corner plots, park-facing flats, or those on specific floors.
51. Maintenance Charges: Monthly or annual fees for the upkeep of common areas. In Mohali, these range from Rs 3 to Rs 8 per square foot depending on the amenities.
52. Holding Charges: Fees charged by a developer if the buyer fails to take possession within the stipulated time after receiving the notice.
53. Delay Compensation: The amount a developer must pay the buyer if the project completion is delayed beyond the committed date.
54. Interest on Delayed Payment: The penalty a buyer must pay the developer for missing payment installments as per the agreed schedule.
55. Force Majeure: A clause that exempts parties from their obligations due to extraordinary events beyond their control, such as natural disasters or pandemics.
56. RERA Registered Project: A project that has been vetted and listed by the regulator, providing a layer of security for the buyer.
57. Encumbrance Certificate: A document confirming that the property is free from any legal or financial liabilities like mortgages or liens.
58. Title Search Report: A report by a legal professional tracing the ownership history of the property for the last 30 years to ensure a clear title.
59. GPA (General Power of Attorney): A document giving one person the authority to act on behalf of another in general matters, including property management.
60. SPA (Special Power of Attorney): A document granting authority for a specific act, such as the registration of a particular sale deed.
61. FSI (Floor Space Index): Another term for FAR, representing the maximum area that can be built on a plot.
62. Maintenance Corpus: A one-time fund collected from buyers at possession to pay for the long-term upkeep of the project.
63. Sinking Fund: A fund set aside for major future repairs or replacements, such as changing lifts or repainting the building.
64. Pre-launch Booking: Buying a unit in a project before the official launch or sometimes before all approvals are in place, which carries higher risk but lower prices.
65. Allotment Letter: A formal document issued by the developer or authority after the initial payment, specifying the unit number and payment plan.

Why These Terms Matter for Your Mohali Investment

The real estate market in Mohali is evolving rapidly. As the city expands toward the Airport Road and the New Chandigarh corridor, the terminology used by developers and authorities becomes increasingly complex. For example, understanding the difference between "applied for PUDA approval" and "PUDA approved" can save you from investing in an unauthorized colony that might face demolition or lack basic utilities.

I often discuss these nuances on our YouTube channel, @Amritrealty, where we break down specific project documents and government notifications in detail. Whether it is the impact of the latest FAR increases in Sector 82A or the procedural requirements for a GMADA plot transfer, having the right information is the only way to protect your capital.

If you are a land seller who has received a government payout, terms like the Capital Gains Account Scheme are not just jargon; they are essential tools for preserving your wealth. Similarly, for NRI investors, knowing the exact TDS rates and FEMA compliance requirements prevents legal complications with the Income Tax Department later.

This glossary is part of our commitment at Realty Holding & Management Consultants to provide independent, researched advice. We do not just facilitate transactions; we provide the clarity required to make decisions with confidence.

For more in-depth insights, you can read our master pillar on Mohali Real Estate in 2026: The Complete Guide for Buyers, Investors, and NRIs or browse our Mohali Real Estate FAQ 2026.

If this raised a question about your own situation — browse the blog for more, or WhatsApp directly for a quick answer: [WhatsApp Number].

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Amritpal Singh is the founder of Realty Holding & Management Consultants, Sector 82A, Mohali. With over 10 years across real estate development, government liaisoning, capital markets, and media, he has personally closed 180+ transactions across all property categories in Punjab. AMFI and NCFM certified.