9 Terms That Will Enhance your Real Estate Knowledge
The world of real estate can be so massive sometimes it can be daunting, so today we’d like to provide you with the tools to traverse this vast expanse of complexities. In this article, we’ll get into some terms that we believe are invaluable to you making informed decisions when it comes to real estate matters.
Refers to the area that can be actually used by you, or in other words the area of floor you can actually spread a carpet on. Very few agents refer to the property they have up for grabs in terms of actual usable space, they often quote the built-up area and super built-up area instead. More the carpet area more the space you use!
2.Built up Area
Built up area is the term more often used by realtors, it refers to the carpet area including the space taken by the walls and doors of the place as well. This would constitute a good 15-20% more than the carpet area and is exactly why you shouldn’t use it as a marker for the actual space you will get in your contract.
3.Super Built up Area
Super built-up area refers to the built up area in addition to all the common areas like corridors, passages, HVAC systems, etc. This figure would be considerably more than the built up area and as a result is the quote that most realtors provide and it is often a misleading figure as the actual usable space you get is considerably less.
Is the governmental body that is responsible for registration of properties and documentation of buying and selling of land as well. You must always make sure your documents are attested by the sub registrar’s office and get a lawyer to go through them as well. You don’t want to end up in a soup after investing a good sum of money.
Capital gains refer to the profit one acquires three years upon selling a property after holding it for a period of three years. However tax will be applicable on these gains, you can circumvent this by investing in another property or in NHAI or REC bonds.
An encumbrance certificate is essentially a certificate that declares that a property has no standing dues levied against it and is ready to be bought. One can acquire an encumbrance certificate that dates back to 30 years of history of the property from when one requests it.
A title deed is a document that ascertains the ownership of property, the person named in the title deed is the owner of the property for all intents and purposes. One must definitely have a lawyer go through these papers to ascertain the legitimacy of these papers. You never know when some distant relative will show up demanding that the property belongs to him.
Stamp duty refers to the amount of tax one has to pay to the government for one’s property to have it considered as a legal piece of land. Stamp duty varies from state to state but generally is around 3-4% of the agreement value but it can go as high as 8%, not only this but the amount of tax paid varies if the property is in a man or a woman’s name. The stamp duty is usually lesser for women.
Franking charges refer to the amount paid to the bank when getting the seal of approval for a home loan. This seal basically states that there is no stamp duty due on the property in question. It can also be acquired in the sub registrar’s office for a nominal fee.
So these are our top picks for real estate must know , we’ll cover more in another article.
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