The language of real estate is unique to India It is essential to be familiar with the terms that are most commonly used for those interested in purchasing or investing in real estate. In the Indian real estate industry is characterized by its own language that is confusing and unfamiliar to newcomers to the industry. This guide will help make sure that you are familiar with the standard real estate terminology in India.
Key Terms in Indian Real Estate
- Carpet area:The carpet space can be defined as the gross floor space enclosed by walls in an apartment or house. It doesn’t include the walls’ thickness but does encompass the areas inside the walls. It provides the most accurate picture of the livable area.
- built-up area: It includes carpet area as well as the thickness of the exterior walls and the space of balconies. The built-up area will typically be 10% to 15% greater than the carpet and is used in the calculation of the cost of the house.
- Super-built-up area It’s often referred to as space that is saleable, which refers to the area that is built-up increased by an element of common areas like lifts, lobbies and staircases and corridors. This term is often employed in apartment buildings and complexes.
Important Financial Terms
- Stamp Duty An amount that’s paid to the revenue department to authorize for the transfer of property. Nominal taxes vary between states and are a part of the cost associated with the property purchased.
- Registration Fees: Following the payment of stamp duty, the purchaser is required to pay the registration fee in order to transfer the property with his municipality. This proves ownership of the property.
- Circle Rate the lowest price at which a house can be registered for at a particular area. This is decided by the state government in charge and is always different based on the area or the type of property. The circle rate helps buyers to have an understanding of lowest amount they’ll be expected to shell out for the property and resolve any legal issues that might arise.
Legal and regulatory terms
- RERA (Real Estate Regulation Authority): A statutory entity in the Real Estate (Regulation and Development) Act 2016, which provides consumers by providing mandatory disclosures and rights for real estate transactions. This law may be unfamiliar to a lot of business professionals involved in the field of real estate in India and it’s essential to know about RERA.
- Freehold property: The property is owned by the owner without any limitations on time or space and gives the owner complete control over the property. The owner is able to sell the property at any time the owner wishes.
Tips to Understand Real Estate Terms in India
- Study thoroughly: Be familiar with the terms that are used in transactions involving property.
- Consult professionals: Consult with estate lawyers, agents and other financial professionals particularly who specialize in investment.
- Stay Up-to-date: Know the new rules or regulations that are in the ever-changing Indian real property market.
Conclusion
It is vital to navigate across the real terms used in the real estate industry in India since the market is full of lots of confusion. Knowing these terms can help you in avoiding difficulties or mistakes that are faced along the way. If you are a buyer, investor or seller the most powerful weapon you use against real property in India is knowledge.
