Navigating the real estate industry and its deals can be complicated if you are not well-versed in the jargon traditionally used. A proper understanding of each term can help reduce confusion when you’re in the market to buy a property. It also ensures that the transaction is completely transparent. As one of the leading real estate construction companies in Kolkata, we share some of the jargons commonly used in the real estate industry and their meanings.
- Built-up area:
- Super Built-Up Area:
- Carpet area:
- Possession date:
- FSI (Floor Space Index) or FAR (Floor Area Ratio):
- Joint development agreement (JDA):
- Power of attorney (POA):
- Occupancy certificate (OC):
- Maintenance charges:
- Clubhouse:
- Common area:
- Encumbrance certificate:
- Stamp duty:
- Circle rate:
- Possession letter:
- Bank approval letter:
- Mutation certificate:
- Khata certificate:
- Capital value:
- Occupancy period:
This is the total area available in the apartment, which includes the usable area or carpet area. It also includes the unusable area, including the area occupied by walls.
This includes the built-up area, as well as all the common spaces that become accessible after purchasing an apartment. This includes staircases, roofs, and more.
This is the area that is actually usable. Carpet area does not include the area occupied by walls.
This is the date when the developer is supposed to hand over an apartment to you after you buy it.
FSI or FAR determines how much construction is allowed on a piece of land.
A JDA is an agreement signed by the landowner and a developer for the development of a property.
A POA is a specialized legal document that allows another individual to act on your behalf in transactions.
This certificate shows that a particular building is ready to be occupied and it meets all of the government guidelines.
These are fees paid by residents of an apartment complex or housing society to maintain common areas within the premises, such as elevators and staircases.
A facility within the housing society or complex that may include a gym, swimming pool, and recreational areas.
These spaces within an apartment complex, such as lobbies and elevators, are shared by all residents.
This document certifies that a property is free from any outstanding loans or debts.
This is a fee that the State Government charges when you buy a property. It is decided based on the transactional amount and is paid during property registration.
Circle rate is the minimum amount at which a property can be registered. This is decided by the local government.
A possession letter is a document that developers provide to property buyers. This document indicates that the property is ready to be occupied and is a form of official handover.
Banks issue this letter to prospective homebuyers when a home loan is approved.
This certificate must be obtained when property ownership changes to reflect the new ownership.
It is a legal document that contains the details of the property owner for tax purposes. It is an essential document if you plan to own a property legally.
The current market value of an apartment is known as its capital value. This can be determined by the property’s location, amenities offered, age, and condition.
This period spans from the possession of a property to the issuance of an occupancy certificate. You can start to live in the said property during this period. However, you may not be the legal owner of the property yet.
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