Decoding the Real Estate Terms

Home buying is a tedious process comprising of small and big risks, thus home buyers need to be aware of several simple and complex real estate terms. For first time home buyers dealing with complex real estate field might be like travelling through a foreign country without knowing the local language. Doing some research on the Internet will help buyers to decode some of the real state terms that will eventually prove beneficial in their home buying experience. However, people might have heard these real estate terms over the years but they must not be aware of their actual meaning. Some of the real estate terms are decoded below in this article to provide people with an easy understanding.

Single Window Clearance

There are as many as fifty clearances required by the developers before starting any project that usually come from government departments and local self-governments. It is usually observed that these clearances get delayed either due to red tapism or due to some other reasons. Thus, to avoid such inconveniences, developers opt for single window clearance that streamline the clearance process and increase transparency in the real estate sector.

Commencement certificate

A commencement certificate is required by the developers before starting construction of any project. This document is issued by local authorities and is mandatory for apartment complexes. Thus, buyers who are considering purchasing a flat at pre-launch or under construction phase must ensure that their developer has got this certificate from the authority.

Encumbrance certificate

This certificate is a document, which ensures that specific land plot does not hold any kind of monetary or legal liability. It is issued by registrar or sub-registrar’s office after verifying the relevant documents. Purchasing property from a developer having encumbrance certificate ensures that there will be no kind of monetary or legal disputes.

• Industry’ Status

Real estate is the second biggest employer in India after the agriculture and thus it is vital to demand industry status for this sector. This sector also supports more than 126 ancillary industries and still does not hold industry status. This has further kept them away from lower interest rates, financial institution benefits and easy approval processes. The ever increasing land price and lack of ready funds require this sector to earn an industry status, which will mostly benefit the customers of this sector.

Common areas

Common areas of any apartment society are portions that are owned by homeowner’s association and are used by all unit owners, who pay for the maintenance. Facilities such as swimming pools, gyms, tennis court, parking areas and common corridors are included in the common areas of the premises.

Carpet Area

The actual usable space between the four walls in a house is termed as carpet area. It is calculated by multiplying length and width of the room. Total carpet area of the flat is calculated by adding up carpet areas of all rooms.

Built up Area

Carpet area along with the area of walls and door unit is called as built up area, whereas carpet area along with the area occupied by walls, terrace, balconies and area occupied by shared construction like stairs and lifts are called super built up area.

Imperia Structures Ltd an ISO 9001:2008 company and one of the leading real estate developers in Delhi NCR with pan North India presence serving the real estate industry for over two and a half decade.