Real estate language has its specifics in India, so it is vital to familiarize yourself with the main terms for those who are interested in buying or investing in property. The Indian real estate industry has its language which is quite unfamiliar and puzzling to the new entrants. This guide will assist to ensure that you can get more acquainted with the common real estate terminology India.
Key Terms in Indian Real Estate
- Carpet Area: The carpet area can be understood as the real gross floor area enclosed by the walls of a flat or a house. It does not include the thickness of internal walls but includes the area within the walls; it gives the correct picture of the habitable space.
- Built-up Area: This includes the carpet area and the thickness of the outer walls, together with the area of the balconies. The built-up area is generally 10% – 15% larger than the carpet area and is the one that is used for the determination of the price of the property.
- Super Built-up Area: It is also referred to as the saleable space, being the built-up area increased with a portion of the common areas such as the lobbies, staircases, lifts as well as corridors. This term is regularly used in apartment buildings and complexes.
Important Financial Terms
- Stamp Duty: A fee that is given to the revenue to obtain authorization for a property transfer. Nominal taxes differ from state to state and form part of the expenses within the purchased property.
- Registration Charges: Following the payment of stamp duty, the buyer has to make a registration fee to transact the property to his/her local municipal authority. This proves property ownership.
- Circle Rate: The lowest possible price that a property can be registered at a given locality. That is determined by the concerned state government and always differs by region or type of property. The circle rate enables prospective buyers to get an idea of the minimal cost that they will be required to pay for the property and fix any legal hurdles that may come with it.
Legal and Regulatory Terms
- RERA (Real Estate Regulatory Authority): A statutory body under the Real Estate (Regulation and Development) Act 2016 which empowers consumers with the provision of the rights and obligatory disclosures in real estate business. The policy may be new to many business professionals who are involved in the real estate field in India and therefore it is important to understand RERA.
- Freehold Property: An estate that belongs to the owner without any restrictions of time and which gives the owner full control of the property. It enables the owner to transfer the property as he desires.
Tips for Understanding Real Estate Terminology India
- Research Thoroughly: Be familiar with the terms used in property transactions.
- Consult Professionals: Consult with estate agents, lawyers, and other financial experts, especially those in the field of investment.
- Stay Updated: Know the new terms or regulations in the constantly changing Indian real estate market.
Conclusion
It is crucial to breeze through the real estate terminology India because the market is filled with a lot of confusion. Understanding these terms will assist you avoid some of the complications or pitfalls that are encountered along the way. As a buyer, a seller, or an investor the best weapon you can have against real estate in India is information.
