Know the Terminology of Real Estate
A basic understanding of the necessary real estate terms is crucial to maintain a healthy relationship between the seller and the customer. In case, you’ve got any clarifications concerning the fundamentals of real estate, it’s perpetually better to consult an attorney or a real estate professional.
Difference between the Real Estate Terms one should always know
Carpet Area
This is the primary necessary realty terminology that you just have to consider while investing in the flat. The part of your apartment which is really put to use is a known carpet area. In easy terms, it’s the primary space where you lay your carpet. Larger the carpet area of your apartment, the larger floor space you’ve got. Carpet areaalso takes into account the space covering your balcony and private as part of your living space.
Built-up Area
The built-up area is calculated by adding up your carpet space with the area occupied by doors and walls. In most residential properties, 15-20% of the space is enclosed by doors and walls, therefore the built-up space of a property is sometimes 10-20% higher in comparison to the carpet area. Built-up space is additionally referred to as plinth space. This area is one of the key determinants for estimating property value.
Super Built-up Area
Floor Space Index (FSI) is the extent of the area that may be used for construction in a plot of land. This can be sometimes laid down by the Municipal Corporation and Urban Development Authority. The FSI depends upon varied factors like road width and location. FSI doesn’t take into consideration common areas like parking areas, lifts and staircases.
Allotment letter
This is yet another realty term that you just have to be compelled to bear in mind if you are planning to invest in under-construction or newly launched property. An allotment letter can contain details of your housing unit, maintenance charges, payment installments and options,date of deliveryand construction plan. Usually, the allotment letter is issued by the developer once you pay 15% of the property price. This is also an important document that you need to produce at the bank, just in case you’re applying for a home loan.
Sale deed
When a property deal is made between a seller and a buyer, the next step is to chart out a sale deed. It’s a legal document that states that the seller has sold-out his or her property to a buyer at a specific day. It’s an elaborate document that contains details like description, property title, price, location, permanent address of the customer, two witnesses and seller. The sale deed isn’t valid unless it’s signed by both the seller and purchaseralong with the witnesses. The registration charges and stamp duty is applicable for the property are also quoted in the sale deed.
Registration and stamp duty charges
These are necessary taxes levied by the government on properties. The stamp duty is charged based on the worth of the property mentioned in the agreement. Some state governments charge 3-4% stamp duty whereas others charge 8%. While calculating the worth of your property, stamp duty is as well taken into consideration. As an example, the price of stamp duty for a property value fifty lakhs would be around Rs. 2-3 lakhs.
On the other hand, registration charges are levied once the property is being registered within the name of the purchaser. These charges also vary from one state to a different. In Maharashtra, 1% of the property price is taken as the registration charge.
