Below is a list of some basic terms that are the ABC’s of real estate. Before purchasing real estate in India, it is crucial to know a handful of the most commonly used terms.
Carpet Area :
It is the area of the house which does not include the inner walls’ area. Carpet area calculation also includes the terrace and balcony space, which is normally considered as half of the main or the actual area.
Built-up Area:
Built-up area includes everything right from the thickness of the outer walls, carpet area, balcony area until the inside walls.
Must Read: Understanding Carpet Area, Super Built-up Area & Built-up Area
Super built-up Area :
This generally comprises of the built-up area and also all the useable area including the lobby, stairs, corridors, lifts etc and are proportionately divided among the flats.
Per Square Foot Rate :
Generally developers decide the value of the property based on the per square foot rate of the super built-up area. This is the reason for the super built-up area being termed as “Saleable area”.
Floor Space Index (FSI) :
Floor Space Index calculation or FSI is the actual ratio between the total built-up area and the available plot area permitted by the Government for a specific locality. A higher FSI will have a higher built-up area.
Residential & Commercial Property:
Residential property refers to those buildings which are developed for personal use and living; Commercial properties are those which are developed solely for business purposes.
What is Freehold property:
A Freehold property is where the owner has the complete & unconditional ownership of the land and also the building which stands on it. In other words, it is the unrestricted ownership of the whole real estate property.
Real Estate Broker:
Real estate brokers are usually professionals who mediate between the owner and the buyer in the sale or purchase of a property.
Conveyance:
It is referred to the act of transferring or conveying the
rights, title, ownership & interests of a property from one person to the other, who is purchasing the property. Any property whether immovable or movable should be transferred to the buyer using this agreement.
Credit Score:
It is a statistically derived score of a person’s credit worthiness, which is generally used by money lenders to know the likelihood of that person repaying his/her debts. It is usually based on the person’s past credit history.
Lease Agreement:
Lease agreement is one type of contractual agreement made between the lessee (user) and the lessor (owner) to lease out the property for a period of time. The terms cannot be changed until the lease term expires and it should be strictly followed by both the parties.
License Agreement:
License agreement is referred as the written agreement which is entered into by the owner of the property who gives permission to another person to use the property or involve any activity with regards to the property.
Non-Disclosure Agreement:
A non-disclosure agreement or NDA is a legal contract signed between two or more parties outlining confidential materials, knowledge or valuable information which the parties share among themselves for business purposes but wish to
restrict the access to third parties.
Inherited Property:
Inheriting a property is the practice of passing on of a property, titles, debts and any other obligations upon the death of a person or under any other circumstances.
Subletting:
It is basically the practice of an existing tenant to lease out small fraction or the whole property to another person. And the subtenant pays the rent to the tenant instead of paying it to the owner. In India, the tenant is evicted if found guilty of subletting the property to another person without the knowledge of the owner of the property.
