Before you go looking for a new home know these 10 real estate terms
Ensuring you are totally armed before approaching something new is a wise step. The same also goes for real estate.
Today, not many people approach agencies and brokers to fix them up with a dream home. Everything is so readily and easily available online that one doesn’t need to!
Simply check out a few websites in India, add filters for city, location, type of home, budget etc. and there, homes at your fingertips, literally!
However, to ensure you are not taken for a ride, it is also important to know some real estate language! This generally comprises of real estate terms that are widely used while in the process of buying homes and is good to at least know the basic few.
These real estate terms and meanings are essential if you are a newbie in the field, take a look:
1. Alienation Clause:
This refers to the completion of a deal in a single transaction by paying off the loan balance in one large instalment post which the buyers and the seller have no authority or responsibility for the proposed apartment or deal, hence the name.
2. Built-up Area:
This comprises of the carpet area along with the calculation of the outer walls and includes the area of the balcony as well.
3. Carpet Area:
This area in the simplest terms refers to the area within the actual home without considering the thickness of the outer walls. Thus, the area where a carpet can be laid is the carpet area.
4. Floor Space Index (FSI):
It refers to an area that can be used for the purpose of construction on a said piece of land. This is the maximum area the owner can utilize for construction.
5. High Rise:
Any building with 25 storeys or above is called as the high rise (Central Business District), however, in suburbs, any building with more than 7-8 storeys can be tagged as a high rise complex.
It refers to the legal transfer or change of name in the records of the Corporation for a particular property.
7. Requisitions on Title:
It refers to a process wherein the buyer asks for additional information about the concerned property from the owner.
8. Stamp Duty:
Refers to the tax levied on a legal document during the transfer of an asset or property.
9. Utilities and facilities:
This comprises of a number of facilities that are a part of the apartment but does not include the apartment in the picture. Water, electricity, play area, swimming pools etc.
10. Written Down Value:
It refers to the deductions made for depreciation against the capital costs or current value of an asset.
Although these basics terms may not particularly suffice if your requirement is big i.e. you are looking to invest in a bigger place, however, for most first-time real estate buyers, knowing these real estate terms can be a big boon!
Apart from these real estate terms and meanings, also ensure you read up; learn stuff on the internet pertaining to location, investment etc. and take the best call when you are faced with a situation. Another important advice is to also keep in touch with someone who is well-versed with the industry to help understand the inside tactics or brush up on real estate laws.