Understanding Real Estate Terms and Jargon

 

Buying a house is a dream for many individuals. I’m sure it is one of the many things you’ve hoped to check off your bucket list. Sometimes, this dream also gets confusing.

Often, we get confused because we don’t know what the different processes and jargon that gets thrown around by the ‘experts’ of the real estate industry even mean. Not fully grasping something while striving hard to get it can be difficult and frustrating.

Here, we will list a comprehensive set of terms commonly used in the Indian real estate sector so that you can be prepared when an agent or a real estate company tries to confuse you between carpet area and built-up area, for example.

Here are some real estate terms that you must know:

Area

The area is the unit of land measurement. It is measured in acres, square feet, or square meters.

Allottee

An allottee is a person allotted a piece of land or property, usually by a government body/authority or a project developer.

Apartment

An apartment is an independent property sold to buyers that may include one or more rooms, usually a part of a multi-storeyed building with other facilities and amenities.

Appreciation

Appreciation is an increase in the value of a property due to changes in market value.

Assessed valuation

Assessed valuation is the value that a taxing authority places on a property to determine the taxation value of the said property.

Beneficiary

The person/institution designated to receive an income from a trust/estate/deed of trust.

Built-up area

The built-up area is the entire floor area that includes walls, lobbies, corridors, basements, and some common areas with the carpet area. Different regulatory bodies in different cities might have their built-up areas. As a buyer, you need to know what is included when the developer or authority measures the built-up area.

Carpet area

The usable area of an apartment, not including the wall thickness, is called the carpet area. The name means an area where you can place a carpet.

Completion certificate

More commonly known as Occupation Certificate (OC), this document is issued by a municipal corporation to a real estate developer. It is a document acknowledging that the developer has completed the project following proper formalities and approvals.

Central Business District

Central Business Districts or CBDs are commercial areas such as employment hubs and their immediate vicinity near many large corporate entities, retail outlets, and financial institutions.

Collateral

An asset, like a car or home, that guarantees the repayment of a loan.

Down payment

Down payment is usually paid by the buyer after the lending company has issued a loan of about 80–85% of the value of the property.

Depreciation

Depreciation is a decline in the value of a property due to ageing, physical deterioration, economic imbalance, etc.

EMI

EMIs are Equated Monthly Installments used to pay back the loans issued by financiers.

Fixed Rate of Interest

This rate of interest remains fixed throughout the loan.

Floating Rate of Interest

This kind of rate on a loan may fluctuate depending on the lending rate fixed by the Reserve Bank of India. This rate changes yearly but can happen as frequently as once in six months. The floating rates are adjusted according to the Prime Lending Rate. If the PLR falls, the customer benefits and vice versa.

Lease

A lease is a sum of money paid to the landlords at the beginning of the tenure and is repaid without interest when the tenure ends.

Lock in

Lockin is a written agreement which guarantees the buyer a fixed interest rate if the loan is closed in a fixed amount of time. The agreement also mentions the number of points to be paid in closing.

Mortgage

A mortgage is a type of loan where the borrower agrees to pay back the lender within a fixed period during which the property is the collateral.

Maintenance Charges

Maintenance Charges are charged by societies on homeowners, including security fees, maintaining complex structures, and contributions towards new investments and requirements.

Market value

Market value is the price of the property in an open market. A lot of factors, including demand, supply, quality, and other offerings, affect the market value of a property.

No Objection Certificate (NOC)

NOC is a certificate issued by the local authority to state that it has no objection to the commencement of construction. It states that the plans are in order, approvals are taken, and guidelines and rules are set and in force.

Possession letter

A possession letter is given by the developer to the customer to confirm that the property is completed and ready to be handed over to the customer to be moved into.

Pre-payment

Pre-payment involves the paying off of the loan before the tenure is over. A usual fee is charged, depending on lenders, for the pre-payment to happen.

Registration Charges

Registration Charges are issued to register a legal title under your name. It takes place in the sub-register’s office in a local court.

Super built-up area

The super built-up area includes everything mentioned in the ‘built-up area’ with a share of all the common areas proportionately divided among all unit owners.

Sale deed

The sale deed is essential in transferring the ownership of a property in exchange for a price paid. This document has to be registered.

Stamp Duty

Stamp Duty is a percentage of transaction value levied on every registered sale by the State Government. It ranges from 5–14%, depending on the state.

Tehsildar

A Tehsildar is a revenue authority or officer who collects revenue from a particular jurisdiction.

Tenant

A tenant is a person who is not the owner of the property but occupies it under specified terms and conditions for a specified period.

Title

The document provides legal backing that a person is the rightful property owner.

These are some terms you need to know when investing in real estate. In India, there has been a rapid increase in the demand for residential properties over the years.

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Originally Published at - https://medium.com/@industryupdates/understanding-real-estate-terms-and-jargon-b66faafa53fb

What is the difference between a flat, an apartment, and a house?

 

Words like house, flat, and apartment are often used interchangeably, in a manner of speaking, to refer to spaces of personal dwelling where people return to in order to refresh and rejuvenate after a day spent working and travelling.

While the actual unit one occupies depends on several factors, the most important being budget and geography, the terms themselves hold specific meanings when one is in the market for a home.

What is a flat?

Falling more on the affordable side, flats are common structures in bustling cities where home buyers/renters are looking for living spaces that offer standard features that cover basic needs. Usually occupying a single level, accommodations here can share several amenities like washrooms and laundry areas. ‘Flat’ is also more commonly used in countries speaking UK English.

What is an apartment?

Apartments can occupy a broad range of residences, affordable to both middle-income home buyers and renters to high-rise luxury apartments exclusive to high-net-worth individuals where amenities expand to private gyms, pools, luxury decks and more. They are individual units in multi storey set-ups. The word ‘apartment’ is more commonly used in the USA.

What is an independent house?

They refer to standalone housing units. It consists of a ground floor or one or more upper storeys. Typically, the most luxurious out of the three, an independent house comes with a bigger price tag where the biggest advantage is developing the architecture to suit your tastes and needs. Also called as villas, these luxury residences are found behind gated communities.

One of the biggest advantages that comes with living in a multi-unit dwelling like a flat or an apartment is the ability to share the maintenance cost of amenities like elevators, parking space, and security with the other residents of the apartment building. They can also provide a sense of community with apartment neighbors, as well as amenities like sports areas and gardens bringing residents together.

Taking out an insurance or a loan is easier for people seeking to live in flats and apartments as any damage to building property is covered by the society as a whole whereas individual home owners have to pay monthly premiums to safeguard their property. There are also pre-approved loans for flats and apartments whereas a stricter process is attached to seeking loans for individual properties.

Similarly, a flat or an apartment is relatively easier to sell as compared to houses as the selling price attached to it is often too high to be affordable to the general public. Ensuring security can also put a stain on one’s finances when it comes to independent house owners whereas for people living in residences, paying for security is a part of the monthly maintenance costs.

One is more likely to find independent houses as places of residence in semi-urban to rural areas whereas apartments and flats are relatively more common in cities.

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Originally Published at - https://industryupdates.medium.com/what-is-the-difference-between-a-flat-an-apartment-and-a-house-47defd566463

What is Flats in Real Estate?

 

If you have been looking for a new place to live, you might have skimmed over or visited many flats to find your next home. Flats have become a staple offering in urban landscapes with the increase in demand for housing.

But what exactly does a flat entail in the vast tapestry of real estate?

For many, flats might even be synonymous with real estate or housing. But have you ever wondered what it means beyond the brick and mortar, beyond the tiles and rooms? We will understand what flats offer in the real estate industry in the article below.

What we all know about flats

Flats are self-contained housing units within an apartment, society complex, or a larger building. Unlike bungalows and villas, flats are not standalone, as they may share common walls and facilities with other homeowners. Flats can range from budget 1-room kitchens to plush penthouses, depending on the buyer’s needs.

What flats are

1. Practical living areas

Flats are known for their optimum utilisation of space to provide a comfortable living experience. Flats are an economical and pragmatic living situation in urban areas. Flats are practical because they can cater to all living requirements in a smaller space without compromising quality and premiumness.

2. A home away from home

For those migrating and moving to urban areas in search of better opportunities, living in a flat can be surrounded by people from different lifestyles sharing a space to co-exist and live together. Flats are located in apartments where there could be shared amenities such as gyms, swimming pools, and community spaces to foster a sense of belonging among residents.

3. Investment opportunities

For the very reason that people from all over the country migrate to urban areas in search of a better life, flats have also been a very beneficial investment instrument for many years. The real estate market views flats as a valuable asset that keeps appreciating year after year. According to the Economic Times, property prices hiked by 5.9% in Q3 in India.

4. Challenges and limitations of flats

Flats, like any other type of property, come with their own set of challenges. Issues such as noise, limited outdoor space, and privacy may cause a little bother to people. But these are often outweighed by convenience, security, and shared resources.

If you’re looking for a flat or an apartment in the city and desire a premium living experience at a great price, you must consider Joyville Homes. With mesmerising offerings in cities like Mumbai, Pune, Howrah, and Gurugram, Joyville Homes is one of the best names in the affordable real estate market. To know more, visit — https://www.joyvillehomes.com/

Originally Published at - https://industryupdates.medium.com/what-is-flats-in-real-estate-c34b36872c0b 

What do you mean by civil construction?

 

Understanding Civil Constructions: The Foundations of Innovation and Progress

Think about your favourite monument or the expansive airport in your city. Think about the public transport systems, roads, highways, train stations, and bridges. We pass by or use so many of these structures every day. Have we stopped to think about the creators and maintainers of these structures?

Civil construction, a branch of Civil Engineering, involves the construction and maintenance of natural and manmade environments. They are also called civil infrastructure projects and are the backbone of infrastructure in our world.

In this article, we will explore the importance of civil construction, its key components, and the various personnel involved in civil construction.

A multi-faceted industry

Civil construction includes the planning, designing, execution, construction, and maintenance of structures and systems that serve the needs of the people and country. From massive bridges, upkeep of national monuments, and development of well-channelled transportation, civil construction undertakes all such and many more projects.

Key components

1. Structural engineering

The designers of the ‘bones and joints’ of a project, structural engineers are experts who design and analyse structural components that stand the test of time and can withstand various loads from gravity, wind, or even seismic forces. They are skilled in assessing conditions and providing plans that ensure the safety of occupants and users while meeting design goals.

2. Geotechnical engineering

Geotechnical engineers are skilled in assessing the effect of earth materials on structures. They do subsurface and on-surface explorations to analyse the soil, water, and rocks and provide the right foundation upon which structures stand firm. Thus geotechnical engineers or even geologists design earthworks and foundations for projects while also providing solutions to repair damages caused due to erosion, landslides or mining.

3. Transportation engineering

The designers that make our way around the city easier and more effective are transportation engineers. They are the ones to ideate, plan, and execute the construction of roads, highways, bridges, and other transportation structures. They design these structures keeping in mind the traffic flow, safety requirements, and environmental concerns.

4. Water resource engineering

Water resource engineers study and manage solutions and systems that provide the distribution and circulation of one of the most precious resources to humanity. These engineers plan and execute systems for water storage, supply, distribution and treatment. Some examples are dams, reservoirs, and irrigation systems.

5. Environmental engineering

Environmental engineers design systems and structures that use scientific principles to preserve and protect human health and the natural ecosystem. They also work to develop sustainable solutions that help both humans and nature thrive. These engineers might devise solutions for wastewater management, waste disposal, recycling and other similar projects.

Importance of civil constructions

As explained above, civil construction emerges to be one of the most pivotal cogs in the wheel of modern and societal progress. They not only develop and maintain infrastructure, but also contribute to economic growth, job creation, and environmental protection. As technology continues to advance, civil construction will play an increasingly crucial role in shaping communities, cities, and countries all over the world.

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Originally Published at - https://industryupdates.medium.com/what-do-you-mean-by-civil-construction-4266cf88ee62

Stamp Duty and Registration Charges in Bangalore 2024

 

Stamp duties and registration fees are taxes imposed by the government in the event of a purchase of a property and even on the transfer of ownership of a property. These taxes ensure that the transaction is legally valid and recognised as ‘Proof of Right’ by the law. While stamp duty is influenced by the market value of the property, registration fees are the charges that go into registering every property document by the local Sub-registrar to confirm the location and address of said property. Because of this, the applicable taxes vary from state to state.

In Bengaluru, the stamp duty typically ranges between 3–5% depending on the location and value of the property while the registration charges come around 1–2%. As a part of the property registration charges, an additional cess and surcharges are also applicable. For urban areas in Bengaluru, a cess of 10% and a surcharge of 2% are levied on properties above Rs.35 lakh.

Stamp Duty rates in Bengaluru:

• Properties above Rs.45 lakh — 5%
• Properties between Rs.21–45 lakh — 3%
• Properties less than Rs.20 lakh — 2%

In Bengaluru, the applicable fees are the same for both genders. The registration charge is 1% of the property value.

Stamp Duty and Registration Charges in Bengaluru for 2024

While the above rates represent the current trends, the government of Karnataka, as recently as December 11, 2023, passed a bill that raises stamp duties on many property transfer instruments.

In urban areas, the stamp duty for property partitions converted for non-agricultural purposes will rise from Rs.1,000 per share to Rs.5,000 per share.

In gram panchayats, the stamp duty for such property partitions will increase from Rs.500 per share to Rs.3,000 per share. Additionally, the stamp duty for agricultural property partitions in gram panchayats will escalate from Rs.250 per share to Rs.1,000 per share.

To know the stamp duty charges of the property you are interested in, simply log on to Kaveri Online Services and fill in the details of your property to know the amount you’ll have to pay.

Besides the specific state-wise allotment of the taxes you have to pay when purchasing a property, several general factors influence the percentage of the charges. They include:

Property type: The tax applicable to commercial properties exceeds that of residential homes as commercial properties include several additional features and amenities compared to a residential property.

Location: The property’s geographical location significantly influences the tax charges, with rural and semi-urban areas generally incurring lower stamp duty and registration charges in Pune.

Market value: The calculation of current stamp duty and registration charges takes into account both the total area and the market value of the property.

Owner’s age & gender: The government extends additional concessions based on the age and gender of the property owner. Senior citizens and women may qualify for subsidized stamp duty and registration charges as part of these concessions.

First-time home buyers: Individuals buying a home for the first time are eligible for a maximum of Rs.2.5 lakh exemption on their stamp duty.

Ready reckoner rate: Also called a circular rate, the ready reckoner rate also influences the stamp duty calculation. These rates depend on the area and restrict the sale of a property below a specific amount.

Buying a home is one of the most important decisions a person will make in their lifetime. It is a measure of steadfast commitment and hard work. To make this endeavour successful, it is not only important to consider the property price by itself but also the various associated taxes that get invoked so that he or she is aware of it to make this process a smooth experience.

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Originally published at http://realestateandepc.wordpress.com on December 20, 2023.

Stamp Duty and Registration Charges in Mumbai 2024

 

Mumbai city is a prime real estate market. The influx of urbanisation, commercial and professional opportunities, hubs for multi-national businesses and improving connectivity become factors in pushing the property margins up. With land becoming a scarcer and more valued commodity, every sale or purchase is a significant contribution to the revenues of the government of Maharashtra.

Two of how the government earn with the sale of properties are stamp duties and registration charges. Take for example what occurred in 2020. When the real estate industry faced a slump, the Maharashtra Government reduced stamp duty charges from 5% to 2%. This led to a boost in property sales.

For a home buyer in Mumbai, in addition to the two fees, they have to pay an additional 1% extra stamp duty in the form of a metro cess tax. In total, this raises the tax to up to 6%.

Understanding Registration Charges

Registration charges are the fees paid for registering the property under the buyer’s name. This process provides legal sanctity to the property transaction.

Understanding Stamp Duty in Mumbai

Stamp Duty functions as a property tax where a tax is imposed by the state government on purchasing a property. Maharashtra pays some of the highest stamp duties in the country. To understand the amount you would have to pay in duties is dependent on several factors, including:

Property type: The tax applicable to commercial properties exceeds that of residential homes as commercial properties include several additional features and amenities compared to a residential property.

Location: The property’s geographical location significantly influences the tax charges, with rural and semi-urban areas generally incurring lower stamp duty and registration charges in Pune.

Market value: The calculation of current stamp duty and registration charges takes into account both the total area and the market value of the property.

Owner’s age & gender: The government extends additional concessions based on the age and gender of the property owner. Senior citizens and women may qualify for subsidized stamp duty and registration charges as part of these concessions.

First-time home buyers: Individuals buying a home for the first time are eligible for a maximum of Rs. 2.5 lakh exemption on their stamp duty.

Ready reckoner rate: Also called a circular rate, the ready reckoner rate also influences the stamp duty calculation. These rates depend on the area and restrict the sale of a property below a specific amount.

The Maharashtra government has given special consideration to investors looking to invest in properties in Mumbai by extending the stamp duty waiver for up to 3 years. They now have the opportunity to receive a waiver on stamp duty for resales made within three years of acquiring their property. In these transactions, the stamp duty applies only to the price difference of the property, rather than the entire amount.

For farmland, agricultural land, or residential property, the stamp duty for a gift deed passed on to family members is Rs 200, while for non-family members, the stamp duty is three per cent of the property cost.

Members of housing societies looking to undergo redevelopment are not required to pay stamp duties. At most, they will be required to pay Rs. 100 while the conveyance deed between the developer and the housing society will remain in effect.

Stamp Duty and Registration Fees for 2023–2024

Depending on the location of the property, the duties vary. For areas in gram panchayat regions, the taxes cost 3% of the market value, whereas the municipal regions of urban areas come to about 5% of the market value.

The Maharashtra Government charges a fixed amount of Rs. 30,000 if the retail value of a property is above Rs 30 lakh. However, if the property costs below Rs. 30 lakh, the registration charge is 1% of the property value.

The existing stamp duty rates stand at 5% for men and 4% for women, while registration fees are set at 1% of the property value. In Mumbai, the stamp duty is elevated at 6%, accompanied by registration charges of 1% of the property value.

While these are the current trends observed, the rates can change depending on the ongoing conversations around the cess charges and the appeals for its withdrawal from citizens and realtors as it places further strain on both.

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Originally published at http://realestateandepc.wordpress.com on December 20, 2023.