Top 10 Real Estate Terms You Must Know
Buying a property is truly a milestone achievement, one in which you invest financially and emotionally. As you scout homes for sale in Chennai, here are a few terms the knowledge of which will help you in the process -
RERA – The Real Estate (Regulation and Development) Act, is an act of the Government which safeguards the interest of the home-buyers. This act lays rules and regulations pertaining to the quality of construction, the timely completion of projects and the compliance of the building plan and design specifications. Choosing a RERA certified builder and RERA certified project in Chennai real estate provides a certain level of safety of investment to the buyer.
The commonly used terms related to the dimensions of the property-
Carpet Area - This is the area of the house that is practically available to you for use, where you can move around or lay a carpet. This includes the balcony area and the terrace are. Common areas such as the lobby, lift and stairs are not included in this.
Built-up Area - Carpet area of your house + the thickness of the outer as well as inner walls is the built-up area.
Super Built-Up Area - Built-up area of your house + apportioned part of other usable areas such as corridors, lobbies, stairs, lifts become the super built-up area. The common areas are proportionately divided amongst flat owners.
During the Purchase process you would come across these common terms -
Sale agreement - Once the buyer and a seller reach an agreement, they sign a sale agreement. This document lists the terms and conditions based on which the transaction would take place later.
Sale deed - The builder signs a Sale deed with the home buyer at the actual time of sale of the property. This indicates that the sale of the property is complete and the property buyer is the new owner of the property.
Common terms Related to Home Loan - Once you apply for home loan for the purchase of the property, you would come across these terms -
Down payment - Banks lend about 80% of the property value as loan to the buyer, the rest 20%, called the down payment, is paid by the homebuyer to the builder.
Fixed rate of interest – The interest rates on the home loan is constant throughout the entire tenure of the loan.
Floating rate of interest – The interest rates on the home loan varies during the tenure of the loan based on the prevailing interest rates in the market.
EMI - Equated monthly installment (EMI) is the interest paid by the homebuyer to the bank every month for the loan availed. In its agreement with the buyer, the bank specifies the date on which this payment should be made. In the case of Under construction properties, Loan amount is disbursed in installments and the interest paid during the construction phase is called the Pre-EMI. This is the interest for the loan amount and does not contribute to repayment of the loan principal
These are some of the commonly used terms in the real estate industry the knowledge of which will help in the process of home buying. As a home buyer looking to make the very important decision of choosing the dream home, equip yourself with the latest happenings in the Chennai real estate, choose a developing locality, a reliable builder and an aspirational project built with quality and futuristic amenities.