Here are some basic real estate terminologies commonly used in the Indian market, along with examples to help you understand them better:
Definition: Carpet area refers to the actual usable area within an apartment, excluding the thickness of the walls.
Example: If an apartment has a carpet area of 1,000 square feet, it means that the actual livable space within the unit, excluding walls, balconies, or common areas, is 1,000 square feet.
Definition: Built-up area refers to the total area of an apartment, including the carpet area along with the thickness of walls.
Example: If the built-up area of an apartment is 1,200 square feet, it means that it includes the carpet area along with the additional space occupied by the walls.
Super Built-up Area:
Definition: Super built-up area is the total area of an apartment, including the built-up area as well as the proportionate share of common spaces such as corridors, staircases, lobbies, and amenities.
Example: If an apartment has a super built-up area of 1,500 square feet, it means it includes the built-up area along with the proportionate share of common spaces.
Definition: A sale deed is a legal document that transfers ownership of a property from the seller to the buyer. It is executed after the property transaction is complete.
Example: When you purchase a property in India, a sale deed is prepared, signed by both the buyer and the seller, and registered with the relevant authority to establish the transfer of ownership.
Power of Attorney (POA):
Definition: A power of attorney is a legal document that grants someone (the attorney-in-fact) the authority to act on behalf of another person (the principal) in specific real estate transactions or matters.
Example: If you are unable to be physically present for property transactions, you can give a power of attorney to a trusted representative who can execute documents and perform legal formalities on your behalf.
Definition: An encumbrance certificate is an official document that certifies that a property is free from any financial or legal liabilities, such as mortgages, liens, or pending legal disputes.
Example: Before purchasing a property, it is essential to obtain an encumbrance certificate from the concerned registration authority to ensure there are no existing encumbrances on the property.
Definition: A completion certificate is issued by the local authority or the municipal corporation after the construction of a building or apartment complex is deemed compliant with the approved plans, regulations, and safety standards.
Example: The builder or developer of a residential project obtains a completion certificate once all construction work is finished, indicating that the building is ready for occupation.
These are just a few basic real estate terminologies commonly used in the Indian market. It’s important to familiarize yourself with local laws, regulations, and terminology specific to your region when engaging in real estate transactions in India.