Real Estate: Following are the terms that are used most often while dealing with the purchase of real estate property, housing and execution of building agreements. check details for all important terms used in Real Estate Market…
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Real Estate Terms
The world of real estate can be full of complicated terminology. Here are some key terms you should know, whether you’re a buyer, a seller or just curious about the market.
Mortgage:
A loan secured by real estate that the borrower agrees to repay over time, usually with interest.
#Absolute title:
Absolute title is a title which proves that the property is free from charge, litigation, encumbrance and any other form of attachment/lien. Absolute title gives clear and legitimate right of ownership to the titleholder. The right of the absolute titleholder is unequivocal and cannot be disputed or challenged by any other person. Must Check Basics of Financial Management.
Allotment letter:
It is a letter executed and given by the property developer to the buyer containing details such as the agreed price of the property, payment, and construction schedule, delivery dates, and clauses related to the builder’s liability. In the times of implementation of RERA, the allotment letter serves as a solid document for the buyers to enforce their legitimate rights over the property in case of any defects discovered after possession.
Carpet area:
This term has been defined in RERA as “the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment”. It is the area that can actually be covered by a carpet, hence termed as carpet area.
Built up area:
Built up area is the area that comes after adding carpet area and the areas of the inner walls. It is the area over which the total property is build up.
Super built up area:
When we add built up area and common areas such as lift, corridors, lobbies etc., we get the super built up area. Generally, the developer charge the buyers based on the super built area which is also called as saleable area.
Assessed value:
Assessed value is the value of the property as valued by the taxing authority exclusively for the purpose of determining the amount of taxation for that property.
Bare shell:
It is used to describe the condition of a property after the completion of the construction having basic building amenities in place. These include basic flooring, kitchen, toilets, and plastered walls. Bare shell properties are useful for those who want to set up their office in a custom made interior with rapidly changing requirements.
Warm shell:
These are the properties having completed the construction and with minimally furnished interior such as ventilation, heating and cooling systems, plumbing, lighting and drop ceiling. These are the most preferred properties being comparatively cheaper than the fully furnished apartments.
BHK:
While looking for rentals, we often use the term BKH which is used to depict the building having 1 bed room (B), 1 hall (H) and 1 kitchen (K).
Lock in period:
This is a condition usually placed by the builders to restrict the buyers from selling the property for a particular period of time or till the possession is handed over; as the case may be.
