Irrespective of whether you are a home buyer or investor, it is always advisable to be familiar with specific real estate terms. This will help you simplify the process of home buying and selling. If you plan to buy luxury flats for sale In Koramangala like Advaitha Aksha, you will get assistance from the beginning of the process to the end of the purchase and ever since. However, familiarizing these terms and getting acquainted with how the process works are as important as financial planning in the real estate business.
This blog discusses 10 complicated words used in the real estate sector and their meaning. Here it is!
CIBIL Score
You might have heard this term in other contexts too. CIBIL-Credit Information Bureau (India) collects and maintains information about a person’s credit cards and loan payments. Maintaining a good CIBIL Score is important as it plays a significant role in approving a home loan. The banks evaluate the credit score to determine whether you can repay the loan.
Occupancy Certificate
The local municipal corporation issues the Certificate of Occupancy to the house owners or builders. It certifies that the buildings are fit for occupation and comply with all the approved plans and local laws. OC is a very important document you should have as a homebuyer.
Stamp duty
According to Section 3 of the Indian Stamp Act of 1899, homebuyers are liable to pay a tax to the government called Stamp Duty. The taxable amount can vary according to each state, ranging from 3% to 8% of the transaction value or the minimum price of property determined by the government, whichever is higher. In Karnataka, the state government levies 5.1% stamp duty and 0.5% cess on stamp duty.
Registration fees
Registration fee is a processing fee charged by the State government to register the property with the registrar. This document can be used as proof of transaction between two parties. Most states charge 1 % of the property value as the registration fee, including Karnataka.
Carpet Area
Carpet Area, in the simplest form, is the floor area inside a house where a carpet can be laid out. It is an apartment’s net usable floor area without including external spaces like exclusive balconies, verandahs, etc. In short, the carpet area consists of the area covered within the internal walls of an apartment.
Built-up Area and Super Built-up Area
Built-up area is the total floor area of an apartment, including the inside and outside walls, balcony, etc.
Built-up Area = Carpet Area + Walls + (Utility Area, Balconies, etc.)
Super Built-up Area is an extended version of Built-up Area. An apartment building will have common amenities that all the residents can use. The Super Built-up area includes these areas along with the built-up area.
Super Built-up Area = Built-up area + Common Areas Around The Property
FSI/FAR
Floor Space Index (FSI) or Floor Area Ratio (FAR) is the total area allotted by the government to the builders to build a project on the land parcel. This is calculated by dividing the total build-up area of the building by the total size of the plot. Checking the FSI before investing in a real estate asset is essential.
REIT
Real Estate Investment Trust or REIT is a common commercial real estate investment term. The company owns, operates, and manages income-generating real estate assets. The idea behind REIT is similar to that of stocks, where you get substantial returns from commercial real estate assets instead of getting returns from stocks.
RERA
Real Estate Regulations Act (RERA) is an act that came into effect in 2016. The government aims to protect home buyers from getting scammed by fraudulent builders with the RERA. It also came into existence to encourage more investors to invest in residential real estate assets by making it a safe and secure investment choice.
RERA includes rules and regulations that the builders are expected to follow. It also offers certain rights to home buyers, and it helps make the transactions more transparent and efficient for home buyers.
Classification of Buildings
The commercial real estate realm has Class A, B, C, and D buildings. The classification is based on the asset’s value, with Class A being the highest-valued property and Class B, C, and D being less in asset value. If you are aiming for high rental returns and better appreciation value for properties, it is advised to go with Class A properties.
Advaitha Aksha is one of the premium apartments in Koramangala. These 3 & 4 Bhk Luxury Flats In Koramangala are ideal for homebuyers as well as investors. You can contact the team for any kind of query. Book your dream home at Advaitha Aksha now!