An easy guide to know Real Estate terms better
If you have been home-hunting recently, chances are, you have come across some confusing real estate terms. Here, you will find a list of the most commonly used terms and their easy definitions. So you don’t have to waste time searching for trustworthy definitions all over the internet.
The term literally comes from thought that means the area in a home where you can lay a carpet inside a house. Put in better words, it means the area which you can use. So, this area doesn’t include the area covered by internal walls and external walls. However, it does take into account the area extending across private terrace and balcony.
This essentially means the carpet area of a house including the area covered by internal and external walls. It is also called as Plinth Area in some regions. The Built-up Area of a house usually turns out to be around 10-20% more than the Carpet Area.
Super Built-up Area
Adding more inclusions to the Built-up Area, this term includes the area covered by common areas of the building like lifts, staircase, corridors, and lobby, and is proportionately divided among all flats inside the building. It is also known as Saleable Area.
To give you more clarity of the above three areas, let us give you an example. Let’s consider a typical ground floor plan of a 3 BHK residential apartment in Gurgaon at our project Imperial Gardens By Emaar-India. The spacious homes have a Carpet Area of 1255 sq. ft. (116.66 sq. mtr.) and a Super Built-up Area of 2025 sq. ft. (188.12 sq. mtr.). However, we have considered the verandah area for each flat separately, which is 250.37 sq. ft. (23.26 sq. mtr.)
Floor Space Index (FSI)
It is the ratio of the Built-up Area to the area of the plot on which a building stands. The FSI of a building determines the maximum number of floors a building can have. Higher the ratio for a building, higher is the number of floors it can have.
Per Square Foot Rate
Though you may assume that the per square foot rate is calculated considering the carpet area, it’s not the case. It is instead calculated considering the super built-up area, as the developer also builds common areas, amenities and infrastructure that needs to be paid for.
When the title (rights of ownership, possession and custody) of a property has been completely transferred to a buyer, through a sale deed, without any restrictions about their right to sell or transfer the property, then such a property is called a freehold property. The owner of such a property has unconditional ownership of the plot and the building mentioned in the sale deed.
It is the process of handing over the title, rights and all ownership interests of a property from the seller to the buyer.
Certificate of Occupancy
Before a developer can declare a project to be ready for possession, they have to obtain the Certificate of Occupancy (OC) from the local municipal body. The OC is provided after checking the building complies with all permissible construction plans and local laws.
This is a document given by the developer to the buyer, which is the proof that a specific piece of land or apartment unit, under-construction or possession-ready, belongs to the buyer from there onwards.
Hope this was a resourceful read and gave you clarity. Equipped with this knowledge, you can make a well-informed decision while buying.