REAL ESTATE GLOSSARY
Real Estate Glossary
Important terms
Carpet Area refers to the actual usable area within the walls of the apartment or house where you can actually lay out a carpet excluding balconies and terraces.even area of internal walls are also not included in this
Formula of Carpet Area = Area of all the rooms - Thickness of internal walls
RERA defines carpet area as the space taken up by the actual usable area within the house as well as the area of internal walls (excluding the area of external walls of the house, in this picture blue walls are not included in the Rera Carpet Area).
RERA Carpet Area = Carpet Area(here in brown) + Thickness of internal walls(here in dark Brown)
The Built-up property area is the total of the carpet area, the area of the interior and external walls, the area of the balcony, the area of the exterior stairs,terrace and any additional liveable spaces that may exist .
[Built-up Area = Carpet Area + Area of extra usable spaces + Thickness of internal & exterior walls]
Super Built-up Area is the total area of Built-up Area as well as the proportionate area of the amenities or common areas in the building or society that can be used by the house/apartment owner. These common areas include staircases, lift, lobby, clubhouse, swimming pool, etc.
[Super Built-up Area = Built-up Area + Common Share Area]
The Floor Space Index (FSI) is the factor that decides the total area of the floors allowed on the particular plot.
The developers have to refer to the FSI of the particular locality before developing the residential or commercial building.
The FSI is also termed the Floor Area Ratio (FAR) and is governed by the municipal authorities of the particular cities.
A freehold property means you have complete ownership of both the building and the land it stands on. You don't have to worry about anyone else having control over it.
You can keep it for as long as you want, and even pass it down to your family. Plus, it's free from any legal complications and can be easily transferred to someone else when you sell it.
A leasehold property is one where you rent the property from the owner and you have the absolute right to occupy and use a property for a fixed period of time called the leasehold period (30, 60, 99 years), but you don’t have authority on the land the property is built on.
You're also responsible for additional charges like maintenance fees and ground rent.
Once the lease period ends, the property goes back to the owner.
A sale deed is a crucial legal document showing the transfer of property ownership from the seller to the buyer.
It's essential for completing the legal process when buying or selling property.
The sale deed serves as proof of the official transfer of property ownership between the seller and the buyer.
A Title Deed is a formal, legal document explaining how a property is transferred, inherited, owned, or allotted by a government authority.
It outlines the information of the amount of land owned by a person and the rights of ownership
The Real Estate (Regulation and Development ) Act, 2016
The RERA Act was introduced in 2016 to promote transparency, accountability, and efficiency in the real estate sector by RERA(Real Estate Regulation Authority)
It protects the interests of homebuyers and also promotes real estate investment.
A ready-to-move property is a fully constructed real estate asset that is immediately available for occupancy by buyers.
Unlike Under-Construction properties, it eliminates the waiting period and uncertainty associated with ongoing construction, offering buyers immediate possession and assurance of quality.
An under-construction house or apartment is a property which construction work is still ongoing and not yet finished. It is not ready for occupancy by buyers.
Buyers typically purchase under-construction properties based on plans and blueprints provided by the developer, with the expectation that the property will be completed within a specified timeframe.
Stamp duty is a tax paid to the government on the legal documentation of property transactions (when you buy or transfer property).
It is generally a percentage % of the property's value. The exact rate varies by location and the property's purpose (residential, commercial, etc.). This fee is essential for ensuring that property transfers are officially documented and legally recognized.
Registration Charges are the fees paid to the local government to officially register a property under the buyer's name, giving legal ownership to the buyer. The registration charges are determined by the market value of the property, often ranging from 1% to 3%, and can vary from city to city.
Goods and Services Tax (GST) in Real Estate
GST is A value-added tax in India on the sale of goods and services. For real estate, it applies to under-construction properties but not on completed or resale properties.
Rates can vary based on the type of property.
