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02 Aug 2018by RealtyNXT

Basic Real Estate Terminologies and what do they mean?

Basic Real Estate Terminologies and what do they mean?

If you are a first time home buyer chances are there are many real estate terms that you fail to comprehend. There are many particular terms used in the industry which you have to understand otherwise your conversation with your real estate agent or builder might leave you confused. We have made a list of few particular jargons which will prove useful to you.

1. Carpet Area
The area that lies within the walls of a home office or retail space is called the Carpet Area; basically, an area in which you can lay a carpet. It does not include the thickness of the inner walls. It is the total usable area available to the occupant.

2. Built-up Area
This includes carpet area plus the thickness of outer walls, an area of balconies, terraces, ducts etc. This is the total area that belongs to a single unit.

3. Super Built-up Area
This includes your built-up area along with a proportionate area of common spaces like lobbies, lifts, clubs etc. This may also include common amenities like garden, swimming pool or clubhouse.

4. Saleable Area
Another term for Super Built-up area. This includes actual size of a home and all the area under common spaces like the lobby, staircase, lift, security room etc.

5. Floor Area
Again same as Carpet Area. Floor area is the extent or measurement of the floor in a room or building.

6. Plinth Area
Another term for Built-up Area. It is the area of the apartment or commercial property unit.

7. Lot Size
This refers to the size of the project. It is the amount of land which is being conveyed from the Seller to the Buyer. This is mostly counted in feet and rounded to the nearest foot. It is often expressed in square feet or acre.

8. Open Space Ratio (OSR)
This refers to the proposed open and commonly-owned space development to the total area of the entire land parcel proposed for development. Areas such as parking space, garden etc. are included in open spaces. Anything over and above 80 percent open space ratio is considered to be excellent.

9. Intimation of Disapproval (IOD)
IOD is an essential permission given by the municipal authorities to the developer. Once the development plans are submitted to the Building Proposal Department of BMC, it issues the IOD. The IOD comes with many terms and conditions and the developer has to comply with the requirements and get several clearances like from the Tree authorities, Environmental authorities, Traffic Authorities and so on. After these clearances are obtained, the developer is entitled to obtain a Commencement Certificate (CC).

10. Commencement Certificate (CC)
The local authority issues this certificate to the developer permitting him to commence construction. This is given after the developer has obtained the sanction of plans for the construction of a multi-storied building. CC is given in two stages – i) CC up to plinth level and ii) CC beyond plinth level. It is usually extended from time to time.

11. Occupancy Certificate (OC)
After the construction of the building is completed according to the submitted and approved plans by the authorities, the developer can give the legal possession of the property only when he can hand over the Occupancy Certificate. The OC is a mandatory document and is issued after clearance from the water, electricity, sewerage, firefighting authorities etc. It is illegal to live in a property if you do not have the OC.

12. Free Hold
Freehold property only has the owner and no other entity over it. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations. This type of property is inheritable and there are no restrictions on the right of the property owner to further transfer the property.

13. Lease Hold
A leasehold property is a temporary right to occupy land or property. A person who owns the freehold interest in a property may grant a lease on it to another person. The lease will be a lengthy, written, legal document based on property and contractual law which sets out the rights and obligations of both the Landlord and Tenant.

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