Owning a property is the dream of many people in today’s time. There are many standard terminologies that have replaced a lot of local terms. It is essential for homebuyers to know the exact terminologies to have full knowledge of what they are buying. Here are a few such major terminologies:
The Real Estate (Regulation and Development) Act, 2016, has been introduced to protect homebuyers’ interest. It is an Act of the Parliament of India which establishes Real Estate Regulatory Authority in each Indian state for the regulation of real estate sector.
According to RERA, carpet area is defined as “the net usable floor area of a property, excluding the area of the covered by the areas under services shafts, external walls, exclusive balcony, and open terrace area, but includes the area that is covered by the internal partition walls of the apartment.”
Built-up area of the property is the area that covers the entire floor area of an apartment including the carpet area, internal and external wall thickness, and the exclusive area of the balcony.
It is the amount upon which the property tax is charged in India. The figure of this tax amount is fixed by the Tax Authorities of India. This tax amount is charged from the owner of the property as per the
pre-determined tax rates.
Fixed-OR-Floating Interest Rate
It refers to the interest rate that is charged on home loans. If it is a fixed interest rate, it will remain constant over the tenure of the loan. Similarly, if it is a floating interest rate, the EMIs would vary as per the market dynamics.
These were the few noteworthy Real Estate jargon that are very essential for every home buyer to know. It does not matter whether you buy a residential property in Noida, Ghaziabad, or Gurgaon, know about these terms is a must for you.