{"id":497,"date":"2022-06-10T10:39:55","date_gmt":"2022-06-10T10:39:55","guid":{"rendered":"https:\/\/sisproj.com\/pioneer_local\/?p=497"},"modified":"2024-08-16T10:40:57","modified_gmt":"2024-08-16T10:40:57","slug":"real-estate-jargon-a-home-buyers-guide","status":"publish","type":"post","link":"https:\/\/sisproj.com\/pioneer_local\/real-estate-jargon-a-home-buyers-guide\/","title":{"rendered":"Real estate jargon: A home-buyer\u2019s guide"},"content":{"rendered":"
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Are you aware of the difference between \u201csuper built-up area\u201d and \u201ccarpet area\u201d? Or between \u201cfixed-rate loans\u201d and \u201cfloating-rate loans\u201d?… It\u2019s possible that you don\u2019t have complete clarity on these terms. However, if you are planning to buy a property, whether for habitation or investment, it\u2019s necessary to learn about some commonly-used jargon for your own benefit and security. This is more so because in the fast-evolving domain of real estate, there has been immense transition and consolidation, with the industry becoming more and more professional every day. So a lot of informal or colloquial phrases have been replaced by formal, globally-benchmarked terminologies. Here are a few critical terms you should know about before doing a real estate transaction:<\/p>\n

#Carpet area:<\/b>\u00a0This is the net area inside the external walls that you can use or lay a carpet on. This will exclude usable space on the terrace or balcony, but will exclude all common area spaces like elevators, stairways, lobby, etc, while including the external walls.<\/p>\n

# Built-up area:<\/b>\u00a0This is the entire built-up space extending to the property\u2019s periphery and includes the total thickness of the walls — inner and outer \u2013 carpet area and covered areas including balconies and terrace. Built-up area will again not include common areas like lobby, stairways, lifts, etc.<\/p>\n

# Super built-up area:<\/b>\u00a0The super built-up area will include the entire built-up area of the property that will include corridors, lifts, staircases and other usable areas. For apartment buildings, the common areas are proportionately divided among the apartment owners.<\/p>\n

# Rate per square-foot:<\/b>\u00a0For any property transaction, the price-determining unit is square foot or cottahs\/bighas\/acres. In the case of an apartment complex, the price of a flat is fixed on the basis of carpet, built-up or super built-up area.<\/p>\n

# Home loan:<\/b>\u00a0If you want to buy a property and have a financing need, you can obtain a loan from any bank, housing finance corporations or non-banking financial institutions. Home loans are repaid in equated monthly installments (EMIs) over a period agreed upon. This could range between 5 and 30 years.<\/p>\n

# Loan term:<\/b>\u00a0This is the tenure of your loan-repayment plan by way of EMIs. The EMIs are higher if the duration is short, but you benefit from considerably lower interest payout. On the flip side, a longer-term loan tenure will ensure lower EMIs, but you end up shelling out a lot of more money because of the increased interest payout.<\/p>\n

# Interest rate:<\/b>\u00a0This is the rate of interest that banks charge on home loans. The rates offered are slightly lower for women borrowers, compared to those offered to male borrowers. The rates at present are hovering in the range of 6.9 to 8% per annum.<\/p>\n

# Fixed-rate interest:<\/b>\u00a0If you opt to keep your interest rate fixed for the whole tenure, you are insulated against fluctuations in monetary policy. You should know though that fixed rate of interest is not actually fixed for the entire tenure. So learn more about this from your bank\/FI.<\/p>\n

# Floating-rate interest:<\/b>\u00a0If you choose floating rate, your interest on loan is liable to alteration with every change effected by the RBI in terms of guidance rate, called \u2018repo rate\u2019. So you could gain or lose, depending on the banking regulator\u2019s guidance parameters.<\/p>\n

# Loan default:<\/b>\u00a0If a borrower defaults on his\/her EMI payment for 2 consecutive months, the bank will slap a penalty. In case of a willful default, legal action can also be initiated against the borrower and the property can be attached as well.<\/p>\n

# Credit history:<\/b>\u00a0If you have a good history of repaying your credit card bills, loans and any other debts on schedule, you will have a high credit score of more than 650. This will ensure quick approval of home loans as well as lower rates. A bad history of repayment on the flip side can also result in rejection of home loan.<\/p>\n

# Floor area ratio (FAR):<\/b>\u00a0FAR is the ratio of the entire built-up area and the actual plot area as sanctioned by the government. The built-up area will increase with the rise in FSI. The seller\/developer has to produce the FSI before the sales deed can be finalized.<\/p>\n

# Property appraisal:<\/b>\u00a0Before sanctioning a home loan, the bank usually sends out an expert team to evaluate the property so that its market value can be ascertained. Once that is established, the bank would offer a maximum of 90% of that market value as loan, notwithstanding the borrower\u2019s personal loan eligibility.<\/p>\n

# Freehold property:<\/b>\u00a0When the owner has full and unconditional rights over the land and the building that stands on it, the property is termed a \u201cfreehold property\u201d.<\/p>\n

# Circle rate:<\/b>\u00a0The government fixes a circle rate for each locality as a benchmark for transaction in that particular locality.<\/p>\n

# Stamp duty:<\/b>\u00a0You must pay a portion of your property value to the government to register your property, which is called stamp duty and can vary in the range of 3 to 10%, depending on the state where you are buying your property.<\/p>\n

# Registration charge:<\/b> This is a central government levy and is usually 1% of the property value which you have to pay to complete the process of registration.<\/p>\n

# GST:<\/b>\u00a0Developers have to pay goods and services tax or GST on the sale of units in under-construction projects to the government, which is then passed on to the buyer.<\/p>\n

# Sale deed:<\/b>\u00a0A sale or conveyance deed is a document that is created at the time of sale of the property. Once this deed is signed and registered, it means the sale process has been completed and the buyer becomes the rightful owner of the property.<\/p>\n

# Mutation:<\/b>\u00a0Property mutation is entering the ownership title in the official record books of the local municipal body. Once mutation is done, the name of the earlier owner is replaced by that of the new owner and the property tax bill is generated in the name of the new owner.<\/p>\n

# RERA:<\/b>\u00a0The Real Estate (Regulation and Development) Act, 2016 or RERA was introduced to protect the interests of home-buyers and ensure greater transparency among real estate developers, in turn boosting investments in the sector.<\/p>\n<\/div>\n

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Disclaimer :\u00a0<\/b>Information contained and transmitted by us are for information purposes only. All views and\/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and\/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person\u00e2\u20ac\u2122s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and\/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Are you aware of the difference between \u201csuper built-up area\u201d and \u201ccarpet area\u201d? Or between \u201cfixed-rate loans\u201d and \u201cfloating-rate loans\u201d?… It\u2019s possible that you don\u2019t have complete clarity on these terms. However, if you are planning to buy a property, whether for habitation or investment, it\u2019s necessary to learn about some commonly-used jargon for your […]<\/p>\n","protected":false},"author":1,"featured_media":476,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/posts\/497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/comments?post=497"}],"version-history":[{"count":2,"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/posts\/497\/revisions"}],"predecessor-version":[{"id":499,"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/posts\/497\/revisions\/499"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/media\/476"}],"wp:attachment":[{"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/media?parent=497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/categories?post=497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sisproj.com\/pioneer_local\/wp-json\/wp\/v2\/tags?post=497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}