Real estate terminology has specifics in India It is important to become familiar with the most common terms used by those interested in purchasing or investing in property. It is important to know that the Indian real estate market has its own language, which can be confusing and unfamiliar to newcomers to the industry. This guide will make sure that you are familiar with the standard real estate terms in India.
Key Terms in Indian Real Estate
- Carpet AreaThe carpet space can be described as the gross floor space enclosed by walls in an apartment or house. It does not comprise the wall thickness but does encompass the areas between the walls. It is the right representation of the livable area.
- built-up area: It includes carpet area as well as how thick the exterior walls, as well as the size of balconies. The built-up space is typically 10% to 15% bigger than the carpet and is used in the calculation of the cost of the house.
- Super-built-up area It’s sometimes referred to as space for sale, as it is the built-up area augmented with an element of common spaces like the elevators, lobbies and staircases and corridors. The term is commonly employed in apartment buildings and complexes.
Important Financial Terms
- Stamp Duty The cost is paid to the revenue department to get permission to transfer property. Nominal taxes vary between states and constitute a portion of the costs associated with the property purchased.
- Registration Fees: Following the payment of stamp duty, a buyer must pay an application fee to register the property to their city’s municipal authorities. This is proof of ownership.
- Circle rate: the lowest cost at which a property could be registered for at a particular area. This is decided by the state government in charge and is always different based on the region or the type of property. The circle rate allows buyers to have an understanding of minimum price they’ll have to shell out for the property and to resolve any legal obstacles that might arise.
Legal and Regulatory Terms
- RERA (Real Estate Regulation Authority): A statutory entity as per the Real Estate (Regulation and Development) Act 2016, which provides consumers with the right to be informed and mandatory disclosures in the real estate industry. This policy could be new to some professionals in the business world who work in the field of real estate in India and, therefore, it is crucial to be aware of RERA.
- Freehold Property The property is owned by the owner without any time limit and that gives the owner complete control over the property. The owner is able to transfer the property whenever the owner wishes.
Tips for Understanding Real Estate Terminology 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 experts particularly those who specialize in investment.
- Stay Up-to-date: Know the new rules or regulations that are in the ever-changing Indian real market for real estate.
Conclusion
It is essential to get 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 problems or issues that can be faced along the way. If you are a buyer, seller, or investor, the most effective weapon against real property in India is knowledge.
