Maharashtra Real Estate, RERA & Commercial Leasing Glossary
Clear, jargon-free explanations of Maharashtra land records (7/12 Extract, Property Card, Index-II), RERA area rules, and institutional pre-leased terminology.
Pre-Leased Property (Income-Generating Asset)
A commercial property already leased to an active tenant where ownership transfer gives the buyer immediate rental income from Day 1.
VantageProp Advisory Tip: Always evaluate both the Gross Yield (%) and the tenant’s interior fit-out investment—higher tenant capex equals higher retention.
Lock-In Period
A binding contractual period (typically 3 to 5 years) during which the tenant cannot terminate the lease without paying rent for the entire remaining lock-in duration.
VantageProp Advisory Tip: Ensure the balance lock-in period at the time of your purchase is at least 36+ months for maximum cashflow security.
Rental Escalation Clause
A pre-agreed percentage increase in rent at fixed intervals—standard commercial practice in Mumbai and Pune is 15% every 3 years (or 5% annually).
VantageProp Advisory Tip: A 15% escalation every 3 years boosts an 8.5% Day-1 yield to 9.77% in Year 4 and 11.24% in Year 7 on your original purchase price.
7/12 Extract (Satbara Utara)
An official land register extract maintained by the Maharashtra Revenue Department showing survey numbers, owner names (Bhogvatadar), cultivator details, and crops/loans.
VantageProp Advisory Tip: For industrial sheds, warehousing, or land parcels in Chakan or Bhiwandi, verify both the 7/12 extract and the Non-Agricultural (NA) conversion order.
Property Card (Malmatta Patrak)
The primary urban land ownership record in municipal cities of Maharashtra (like Mumbai and Pune), issued by the City Survey Officer with a CTS Number.
VantageProp Advisory Tip: Confirm that the developer’s or society’s name is mutated cleanly on the CTS Property Card with zero adverse remarks.
Index-II (Sub-Registrar Abstract)
The official summary certificate issued by the Maharashtra Department of Registration & Stamps upon registering any Sale Deed, Lease Deed, or Leave & License.
VantageProp Advisory Tip: Always cross-verify the Index-II of both the Seller’s Purchase Deed and the active Tenant’s Registered Lease Agreement.
Carpet Area vs. Chargeable (Super Built-Up) Area
Carpet Area is the net usable floor area within internal walls (as mandated by RERA). Chargeable Area adds a loading factor (usually 30%–45% in commercial towers) for common lobbies, lifts, and cores.
VantageProp Advisory Tip: Commercial leases are typically quoted on Chargeable Area, while MahaRERA Sale Agreements record RERA Carpet Area—always check the loading ratio.
Lease Rental Discounting (LRD)
A term loan where banks lend 65%–75% of the property’s value based on the discounted present value of contracted future rentals from a strong corporate tenant.
VantageProp Advisory Tip: When your pre-leased yield is ~9.0% and LRD interest rate is ~8.8%, the property becomes virtually self-liquidating through tenant rentals.
Letter of Intent (LOI)
A structured commercial term sheet signed prior to the final Lease or Sale Agreement outlining price/rent, lock-in, deposit, due diligence window, and handover dates.
VantageProp Advisory Tip: Make every acquisition LOI explicitly subject to a satisfactory 30-year Legal Title Verification and Tenant Attornment confirmation.
Tripartite Letter of Attornment
A three-party legal document signed by the Old Owner (Seller), New Owner (Buyer), and Occupying Tenant directing future rent and acknowledging deposit transfer.
VantageProp Advisory Tip: Never disburse final sale consideration without a signed Attornment confirmation and IFSD (Security Deposit) adjustment.
Bare Shell vs. Warm Shell vs. Fully Fitted
Bare Shell has only concrete flooring and basic utilities; Warm Shell adds HVAC ducting, ceiling grid, and lighting; Fully Fitted includes complete workstations, cabins, and server rooms.
VantageProp Advisory Tip: Bare-shell offices leased where the tenant invests their own fit-out capex offer higher long-term tenant retention than landlord-fitted plug-and-play suites.
Ready Reckoner Rate (Annual Statement of Rates - ASR)
The minimum property valuation benchmark published annually by the Maharashtra Government for calculating Stamp Duty and Registration fees.
VantageProp Advisory Tip: Stamp duty is always payable on the higher of the actual Agreement Value or the government Ready Reckoner valuation.
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