I see majority of the population in our country is Illiterate when it comes to basic knowledge about Real Estate. Mark my words it is not rocket science. There are few terms which everyone should know in order to at least be able to understand what someone who is into real estate is talking . They are a bit too technical but I think everyone has a dream which is to own his/her own dream house and you would not want to be cheated at least in this matter.
When you talk of Real Estate this are the terms which are used frequently
Carpet Area, Built up Area, Super Built Up Area, FSI, Fungible FSI, TDR, Loading factor, Per Square feet area, Beams & Columns, Slabs, Podium, RMC, Clear Title, NA, City Survey Plan, Registration Office, Property Card, Litigation, SRA
Conveyance Deed, IOD, CC, OC, BCC, Maintenance, Compliance, Bank Guarantee,
I know the list is extensive but I don't want you to be Bullied by any Real Estate developer from now.
Following are the Terms which you will listen and see developers using frequently.
Carpet Area, Built up Area, and Super Built Up Are - Carpet Area is basically the area which is enclosed within the walls, the area where you lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom etc. Flats are sold at Carpet Area
Built up area is the carpet area plus the
thickness of outer walls and the balcony.
Super Built Up Area is built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. In short the entire buildings area
When you talk of Real Estate this are the terms which are used frequently
Carpet Area, Built up Area, Super Built Up Area, FSI, Fungible FSI, TDR, Loading factor, Per Square feet area, Beams & Columns, Slabs, Podium, RMC, Clear Title, NA, City Survey Plan, Registration Office, Property Card, Litigation, SRA
Conveyance Deed, IOD, CC, OC, BCC, Maintenance, Compliance, Bank Guarantee,
I know the list is extensive but I don't want you to be Bullied by any Real Estate developer from now.
Following are the Terms which you will listen and see developers using frequently.
Carpet Area, Built up Area, and Super Built Up Are - Carpet Area is basically the area which is enclosed within the walls, the area where you lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom etc. Flats are sold at Carpet Area
Built up area is the carpet area plus the
thickness of outer walls and the balcony. Super Built Up Area is built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. In short the entire buildings area
FSI (Floor Space Index) & Fungible FSI - Formula for FSI is (Total covered area on all floors of all buildings on a
certain plot) / (Area of the
plot)
Fungible - Used by Developers having less permissible FSI. Developers can buy additional FSI , The maximum he can construct
over and above the permissible FSI is 35 per cent of the flat area
TDR - Transferable Development Rights TDR effectively allows
developers to exceed the FSI or the FAR of the land, allowing them to build
additional floors in a building
Loading Factor - (Sale able Area - Carpet Area)/Sale Able Area basically it is is the difference between the carpet area and the Saleable Area. Make sure that the loading factor should not exceed 30%. Lower the better for you
Flats are sold per square feet the avg size of Apartments in Mumbai are
- 1 BHK- 400 to 750 square feet
- 2BHK-800 to 1350 square feet
- 3 BHK-900 to 3100 square feet
- 4 BHK-1300 to 4250 & more square feet
Beams & Columns, Slabs, Podium, RMC are all a part of Construction Plan, RMC by the way is Ready Mix Concrete it is used by Developers to increase the pace of the construction activity.
Clear Titlt, NA, City Survey Plan, 7/12 and Property Card - This are the core docs which a developer looks for before going forward for any land deal.
A title search for a period of last 30 years is done to know the actual property owner and to see whether the property transfers are done legally or not where as NA is non agricultural which as land can be used for development. City Survey plan - Property Card are bought from the Talatis office to find the exact measurement and all other necessary info about the land
Litigation is when construction process is stopped due some legal procedures not met or due to court order.
Maintenance and property tax - There is a lump sum and recurring maintenance which is charged by developers till such time the building has been fully handed over to society of owners. make sure that you know what you are paying, probe the developer and get all the details of the amount paid towards what. Also understand the total recurring costs that each flat owner will need to bear towards property taxes and maintenance every year.
SRA - Slum Rehabilitation Authority is whole and sole regulatory authority who gives permission to developers constructing a building under SRA scheme.
Consumer Point of View
Documentation - Folks please make sure that your legal team ask for all the below before you book a flat
Initially look out for whether it is a NA - Non Agricultural land or not and then ask if all approvals are taken before Constructing that particular Building.
Other basic docs include IOD, CC, OC, BCC
IOD - Intimation of Disapproval, CC - Commencement certificate, OC - Occupation Certificate, BCC - Building Completion Certificate
After looking at all the above things make sure that the there is a Compliance which is the flats are made as per the approved plan.
Home loans are available for almost projects as the projects are given a Bank Guarantee by nationalized banks. It is on you to decide your home load proceedings
Hope you all are confident enough now. Don't be in a hurry in signing the dotted lines in the agreement given to you. Read all the clauses properly , Take help from consultants if you are not sure or if you do not understand any of the clauses in the agreement . The charges are nominal but this would save you from what can become the biggest mistake of your life.
I don't say all developer cheat but there are few developers who use this illiteracy of prospective home buyers and try and manipulate things in the agreement. Be aware of such developers and be Vigilant and proactive about your property deals. I may have forgotten few terms but will surely keep you all updated with them shortly.
Feel free in posting your doubts.
Clear Titlt, NA, City Survey Plan, 7/12 and Property Card - This are the core docs which a developer looks for before going forward for any land deal.
A title search for a period of last 30 years is done to know the actual property owner and to see whether the property transfers are done legally or not where as NA is non agricultural which as land can be used for development. City Survey plan - Property Card are bought from the Talatis office to find the exact measurement and all other necessary info about the land
Litigation is when construction process is stopped due some legal procedures not met or due to court order.
Maintenance and property tax - There is a lump sum and recurring maintenance which is charged by developers till such time the building has been fully handed over to society of owners. make sure that you know what you are paying, probe the developer and get all the details of the amount paid towards what. Also understand the total recurring costs that each flat owner will need to bear towards property taxes and maintenance every year.
SRA - Slum Rehabilitation Authority is whole and sole regulatory authority who gives permission to developers constructing a building under SRA scheme.
Consumer Point of View
Documentation - Folks please make sure that your legal team ask for all the below before you book a flat
Initially look out for whether it is a NA - Non Agricultural land or not and then ask if all approvals are taken before Constructing that particular Building.
Other basic docs include IOD, CC, OC, BCC
IOD - Intimation of Disapproval, CC - Commencement certificate, OC - Occupation Certificate, BCC - Building Completion CertificateAfter looking at all the above things make sure that the there is a Compliance which is the flats are made as per the approved plan.
Home loans are available for almost projects as the projects are given a Bank Guarantee by nationalized banks. It is on you to decide your home load proceedings
Hope you all are confident enough now. Don't be in a hurry in signing the dotted lines in the agreement given to you. Read all the clauses properly , Take help from consultants if you are not sure or if you do not understand any of the clauses in the agreement . The charges are nominal but this would save you from what can become the biggest mistake of your life.
I don't say all developer cheat but there are few developers who use this illiteracy of prospective home buyers and try and manipulate things in the agreement. Be aware of such developers and be Vigilant and proactive about your property deals. I may have forgotten few terms but will surely keep you all updated with them shortly.
Feel free in posting your doubts.
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