Glossary

Freehold and leasehold

A freehold plot is owned outright.

A leasehold plot is held for a fixed term - commonly 90 or 99 years in Indian development-authority schemes - after which it reverts unless renewed, and it usually carries an annual or one-time lease rent. Two plots at the same rate per sq.m are different products if one is freehold and the other is a 33-year lease, which is why SarkariProperty shows tenure per plot rather than per scheme.

Worth knowing

A freehold conversion charge is often payable on top of the bid - 12% at MDA, computed on the value including any location premium.

Lease rent, where charged, is typically 10% of the same PLC-inclusive land value.

Questions people ask about Freehold and leasehold

What is Freehold and leasehold in a government plot auction?

A freehold plot is owned outright. A leasehold plot is held for a fixed term - commonly 90 or 99 years in Indian development-authority schemes - after which it reverts unless renewed, and it usually carries an annual or one-time lease rent. Two plots at the same rate per sq.m are different products if one is freehold and the other is a 33-year lease, which is why SarkariProperty shows tenure per plot rather than per scheme.

The other words a notice uses

EMD (Earnest Money Deposit)An EMD is a refundable deposit a bidder pays before an auction opens, proving they intend to bid.Reserve priceA reserve price is the floor an authority sets for a plot - the lowest bid it will accept.Freehold and leaseholdA freehold plot is owned outright.Location premium (PLC)A location premium, or preferential location charge, is an extra percentage an authority adds for a plot with a better position - a corner, a park frontage, or a wide road.Lucky drawA lucky draw allots flats or plots by lot among everyone who applied and paid the registration amount, rather than to the highest bidder.e-AuctionAn e-auction is an online ascending-bid sale run on the authority's own portal.Allotment letterThe authority's letter confirming the flat or plot is yours, with the payment schedule.Category: environmental, and reservedAuthorities publish a "category" against a plot and mean two unrelated things by it.TDS on property (section 194-IA)Under section 194-IA of the Income Tax Act, a buyer of immovable property valued at ₹50 lakh or more must deduct 1% TDS and deposit it with the government.GST on a plot purchaseGST treatment differs by what the land is for.Reserve price and circle rateThe circle rate is the state's minimum valuation for stamp duty; the reserve price is the authority's floor for the auction.Possession and infrastructure statusAn authority can allot a plot before the estate's roads, water and sewer are finished.CorrigendumA notice that changes a published notice: a date, a plot, a venue.Registration moneyWhat a lucky draw applicant pays to enter; refunded to the unsuccessful.InstalmentsPaying the price in parts on the authority's schedule, with interest as the brochure prints it.Income categories (EWS, LIG, MIG, HIG)Income categories the authority uses to price and reserve flats; the first two carry an income ceiling.Group housing plotA plot sold to build apartment blocks, usually by auction to a developer or society.