Bank auction glossary
last updated 2026-07-21
A plain-language glossary of the terms you meet in a bank auction — SARFAESI, NPA, reserve price, EMD, as-is-where-is, symbolic and physical possession, encumbrance, sale certificate and UDS — so a sale notice reads clearly instead of cryptically.
The terms
| Term | Meaning |
|---|---|
| SARFAESI Act | The 2002 law letting banks enforce security and sell mortgaged property to recover unpaid loans, without going to court first. |
| NPA (non-performing asset) | A loan the borrower has stopped repaying, which lets the bank begin recovery. |
| Reserve price | The minimum bid the bank will accept — a floor, not the market value. |
| EMD (earnest money deposit) | A refundable deposit, commonly about 10% of the reserve, paid to be allowed to bid. |
| As-is-where-is | You buy the property in its current condition and situation, with no warranty from the bank. |
| Symbolic possession | The bank holds the property on paper; an occupant may still be inside. |
| Physical possession | The bank has actual, vacant control of the property. |
| Encumbrance | A charge or claim on the property — mortgage, tax, arrears or lien. |
| EC (encumbrance certificate) | A record of registered charges and transactions on a property; in Tamil Nadu, available from TNREGINET. |
| Sale certificate | The document issued after full payment, recording the sale to the buyer. |
| UDS (undivided share) | A flat owner's share of the land under the building — separate from the built-up area, and needed to value a flat correctly. |
| Authorised officer | The bank official who conducts the sale and issues the sale certificate. |
Reading a notice with the jargon decoded
Most of a sale notice is just these terms strung together. Once they are clear, the notice tells a simple story: what is being sold, for what minimum, with what deposit, in what condition, and with what attached. When a term is still unclear on a specific listing, you can ask AuctionScope in plain language rather than guessing.
Frequently asked questions
What does EMD stand for?
Earnest money deposit — a refundable deposit, commonly around 10% of the reserve price, that you pay to take part in a bank auction. See the dedicated EMD guide for how refunds and forfeiture work.
What is UDS in a flat?
Undivided share — a flat owner's proportional share of the land the building sits on. It is separate from the built-up area and is needed to value a flat correctly.
What is an authorised officer?
The bank official who conducts the SARFAESI sale, handles the auction, and issues the sale certificate to the winning bidder on full payment.