In India, real estate language has developed over time, from local phrases to more standard vocabulary. As the Real Estate sector becomes increasingly professional, it is critical that we keep our expertise up to date on a daily basis. If you intend to enter the real estate market to make what will most likely be the largest buy or sell of your life, you will encounter a number of terminology, ranging from the obvious to the esoteric. You could be an aspiring realtor, a homebuyer, or someone who simply wants to learn more about the real estate market. To assist you on your journey, we have explained the most perplexing terminologies you may come across.
The Floor Space Index or Floor Area Ratio:
The Floor Space Index (FSI) or Floor Area Ratio (FAR) is the total built-up area of a building divided by the total area of the property on which it is built. FAR is calculated using the following formula:
FAR = gross floor area/ Area of the plot
The government fixes the FAR or FSI because every city has a limited developable area and expansion beyond this area puts undue strain on the land and infrastructure. The FAR may vary among locales due to differences in demographics, growth patterns, and the nature of property, and is specified in each area’s Zoning Regulations.
The term “built-up area” refers to the full floor area of the apartment, including the carpet area, internal and external wall thicknesses, and private balcony area. It is the actual place that the property buyer will utilise.
The RERA defines carpet area as “the net useable floor area of an apartment, omitting the area covered by the external walls, areas beneath services shafts, exclusive balcony or verandah area, and exclusive open terrace area, but including the area covered by the flat’s internal partition walls.”
Super built-up area:
Super Built Up Space refers to a unit’s built-up area plus shared areas proportional to a unit. Lobby, lift ducts, staircases, pipe ducts/ shafts, air ducts, covered community centres/ clubs, and other covered common facilities are all included in the super built up area. It excludes open spaces such as parks, gardens, roof terraces, and so on.
The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act of the Indian Parliament that aims to safeguard homebuyers while also encouraging investment in the real estate business. The law was approved by the Rajya Sabha on March 10, 2016, and by the Lok Sabha on March 15, 2016.
A freehold property is one in which the owner has entire ownership of the house. In other words, it is not under the control of any entity other than the owner. The owner of such assets has free ownership and can utilise the land for any purpose as long as it is in accordance with local rules. The owner is able to pass on the success property without seeking permission from anyone else.
Fixed-O-Floaty Interest Rate:
This is an interest rate levied on home loans that is fixed for a set length of time before being switched to a floating interest rate.
Stamp duty is a government levy levied in accordance with Section 3 of the Indian Stamp Act of 1899. In the event of real estate transactions, the stamp duty is levied as a percentage of either the transaction value or the government-determined minimum price of property, known as the circle rate, whichever is greater.
Bayana (Token Amount):
After the initial terms and conditions have been formalised, an Indian word denotes the symbolic money handed to the landlord to unofficially freeze discussions on a certain property.
The rateable value is defined as the reasonable annual rent that can be obtained by renting out the property. The figure is used to compute property tax.
The land title is a document that establishes property ownership. When you buy a property from someone, you must register it in your name and pay the stamp duty in order to obtain a land title.
FlatMate.in is the first app that helps you to search shared room/apartments based on common liking & interests and not just based on usual factors like location and price range. In other words, we focus on the relationship between potential roommates. A study shows if you share apartment with compatible roommate then chances are higher that you would stay longer with each other and will become friends for life.