Purchasing a home is one of the most important financial investments we will make in our lives, and it will cost us a significant amount of money. As a result, it's important to choose it in a logical manner. You must consider the conditions, budget, and long-term strategy before closing a deal. Furthermore, you should be aware of the procedures involved in purchasing or selling a home. When buying a home, you can come across a lot of jargon that can be confusing. As a result, we've included a few real estate terminologies in this blog that you should be familiar with before entering the real estate industry.
1- Auction:- A public or private auction at which a property is sold to the highest bidder.
2- Advance Payment:- That is the sum charged by the buyer to the seller at the time of signing the Purchase and Sale Agreement. The number ranges between 10% and 20% of the total transaction value.
3- Zoning:- You should check if the house is in a residential, commercial, or industrial area before purchasing it. If you want to use a part of your home for commercial purposes, you should first check if your local zoning laws allow it.
4- Carpet Area:- This involves any carpeted areas inside a flat.
5- Benami Ownership:- The owner's name does not appear on the title of such a house.
6- Built Up Area:- The total area of the flat, including the carpeted area of the house and the room occupied by walls and ducts, is included.
7- Super Built Up Area:- This includes the built-up area as well as common areas such as elevators and stairwells, which are not owned by the buyer but are used by many flat owners.
8- No Objection Certificate:- This certificate verifies that the property complies with the predetermined standards.
9- Encumbrance Certificate:- The registrar of guarantees or sub-office registrar's issues this to ensure that the property is free of all encumbrances.
10- Stamp duty & Registration Fee:- The payment of stamp duty and the registration fee are crucial steps in the process of purchasing a home. You will be given legal papers confirming that you have bought the property from its former owner after paying these taxes.
11- Collateral:- This form of property offers extra protection when it comes to loan repayment.
12- Freehold property:- A freehold property is one in which the owner of the property has sold the property in the purchaser's name by signing a sale deed. The sub-office registrar's will provide you with a record of such assets.
13- Joint ownership agreement:- This is a contract between two land owners in which they negotiate on their rights, possession, financial obligations, and responsibilities.
14- GST:- A 5% GST is applied to the purchase of an under-construction apartment. In addition, if the property falls into the affordable category, a 1% GST is applied.
15- Mutation:- This procedure entails changing a property's title in the local municipal corporation's tax records.
16- Hi- Tech building:- Smart devices are used in these buildings to provide tenants with protection and comfort.
Conclusion:- These were some of the most widely used real estate words. We recommend that you spend ample time and effort investigating a property before purchasing it. Often, take all of the necessary steps to gain possession of it. We also require that you carefully read the contract before signing it. Furthermore, if you lack legal knowledge and skills in this area, you should hire a lawyer.
