Real Estate terms you should be knowing

Buying a house is a huge decision to take in a person’s life. The real estate market is so vast and chaotic that many advertisements for real-estate may seem jumbled up.

Real estate is an imperishable asset, ever increasing in value. - Russell Sage

Understanding real-estate jargon can help sort out basic queries one may have. Here, we have laid out the most commonly used terms in this sector:

Floor space indexRatio between the plot size and the total permissible coverage area

It is also called Floor area ratio and it is a measure of the correspondence between the total area of the building’s floor and the area of the piece of land allotted by the government for the structure to be built. The FSI of a building can vary for different buildings regardless of its location.

Carpet Area

Plot layout

Carpet area

The carpet area refers to the area inside a building that can be used. The area between the walls that enclose the structure of the building comprises the carpet area. To calculate the area of a room, simply multiply the room width and length together. Similarly, the entire carpet area of the house is calculated.

Built-up area

Built up Area

The built-up area comprises the carpet area and the thickness of the walls, including the balcony. This is also called plinth area in some places. The built-up area is usually 15-20% more than the carpet area.

Super built-up area

Super built up Area

The super built-up area as the name suggests, includes the built-up area and includes the common area of a building such as a staircase, lift, lobby, garden area, etc.

Per square foot rate

(Length x breadth)ft of room

Per square foot rate of the super built-up area is known as the Per square foot rate which is determined by the builder. This area includes both the carpet area and the super built-up area and is used by the builder to determine the house’s price in the market. It is also called the saleable area.

Freehold Property 

Freehold property implies complete ownership of property

A person who owns freehold property has unconditional ownership over the land and/or building that is mentioned in the deed. A seller will transfer all rights to the buyer who can sell or transfer property rights to anyone else.

Allotment Letter

Letter of allotment will assign land or a housing unit to a purchaser

An allotment letter is a written letter provided by the developer of a property that allocates a specific piece of land or housing unit which may still be under construction to a buyer.

Conveyance

Legal process of transferring property from an owner to another

Conveyance refers to the act of transferring all rights of a property including the ownership interests of a specific property that is mentioned in the deed from the owner selling the property to the buyer.

Credit Score

Credit score is calculated based on financial history of an individual

Credit score measures an individual’s worthiness in terms of credit that is derived from the financial history and usage of a credit card.

Certificate of occupancy

Certificate of occupancy states the ownership of the building

Certificate of occupancy is an important document that is issued by local authorities which states the ownership of a house after the house is approved within the construction plans and local laws of the region.

 

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