Property Termes in Real Estate

A Beginner’s Guide to Property Buying: Important Real-Estate Terms

ByMUHAMMAD IMRAN KHAN

A Beginner’s Guide to Property Buying:

Buying property—whether for building a home or for investment—can be confusing, especially when you encounter unfamiliar real-estate terminology. Understanding these terms is essential to avoid mistakes, protect your money, and make confident decisions.

This guide explains the most commonly used terms in plot buying and selling in a simple and practical way, especially relevant to Pakistan’s real-estate market.

📄 File & Ownership Terms Explained

Plot File
A plot file is a document that shows booking or entitlement to a plot. The plot is not physically allotted yet and has no plot number.

Allotment Letter
An official document issued by a housing society confirming the plot number, size, block, and ownership details.

Confirmation Letter
Issued after verification of payment or transfer, confirming that the record has been updated by the society.

Transfer Letter
Proof that ownership or file has officially been transferred from seller to buyer.

Balloting
A process conducted by the housing society to assign plot numbers to file holders.

Non-Balloted File
A file that does not yet have an assigned plot number.

Balloted Plot/File
A file or plot that has been assigned a specific plot number through balloting.

Open File
A file not registered in any individual’s name. These carry higher risk.

Closed File
A file registered in the buyer’s name after proper transfer—much safer for buyers.

🧾 Buying & Selling Terms

Booking Amount
The initial amount paid to reserve a plot or file.

Down Payment
The first major payment made after booking.

Installments
Payments made monthly or quarterly over a defined period.

Lump Sum Payment
Full payment made at one time instead of installments.

Outstanding Amount
Any remaining unpaid balance on a plot or file.

Paid File
A file for which all installments and dues have been cleared.

Partially Paid File
A file with pending installments or dues.

Development Charges
Charges for infrastructure such as roads, sewerage, electricity, and parks.

Extra Land Charges
Fees paid for land exceeding the standard plot size.

🔄 Transfer & Legal Terms

Transfer Fee
A fee paid to the housing society for transferring ownership.

Mutation (Intiqal)
Legal transfer of ownership recorded in land revenue records.

Registry (Bay-Nama)
A registered sale deed, legally transferring ownership.

Stamp Paper
Legal paper used to execute agreements and contracts.

Agreement to Sell
A formal contract between buyer and seller outlining terms of sale.

Power of Attorney (POA)
A legal authority allowing one person to act on behalf of another.

CNIC Verification
Verification of buyer’s and seller’s identity during transfer.

NOC (No Objection Certificate)
Approval from authorities or the housing society allowing transfer or construction.

🏗️ Development & Possession Terms

Possession Letter
Issued by the society granting permission to start construction.

Under Development
An area where infrastructure work is still ongoing.

Ready for Possession
A plot that is fully developed and available for construction.

Utilities Available
Gas, water, electricity, and sewerage connections are provided.

Corner Plot
A plot located at the corner of streets, usually priced higher.

Park-Facing Plot
A plot facing a park or green belt, considered premium.

Main Boulevard Plot
A plot located on the main road of the society.

💰 Market & Dealer Terms

Demand
The price asked by the seller.

Offer
The price proposed by the buyer.

Premium
Extra price charged over the original cost.

Market Rate
The current buying or selling price in the market.

Dealer Commission
The fee charged by a property agent.

Token Money
An advance amount paid to confirm a deal.

On-Money
Extra payment over the official or declared price.

⚠️ Risk & Status Terms You Must Watch

Legal Plot
A plot approved by relevant authorities.

Illegal / Unapproved Scheme
A housing project not approved by LDA, RDA, CDA, or other authorities.

Disputed Plot
A plot with ownership or legal issues.

Frozen File
A file temporarily blocked from transfer due to issues or dues.

Cancelled File
A file cancelled by the society due to non-payment or violations.

Final Advice for Home Buyers

If you are buying property to build a house, always prefer:

  • Balloted plots

  • Paid files

  • Possession-ready areas

  • Direct transfer at society office

Understanding these terms can save you from fraud, financial loss, and legal trouble.

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