Essential Real Estate Terms Every Realtor Should Know in India
By Team Dlanes
Table of Contents
Understanding key terms and concepts in the Indian real estate market is crucial for realtors to effectively navigate transactions and serve their clients’ needs. Here are some essential terms every realtor should be familiar with:
Property Area Definitions
- Built-up Area: This refers to the total area covered by the building’s walls, including the carpet area, balconies, and the thickness of the walls.
- Carpet Area: This is the actual usable area within the walls of a property, excluding common areas such as corridors, staircases, and balconies.
- Super Built-up Area: This is the total area, including the carpet area and common areas such as lobbies, staircases, and corridors, proportionally distributed among all units in a building.
Certificates and Legal Documents
- Completion Certificate: A document issued by the local authority certifying that a property has been constructed according to approved plans and is ready for occupancy.
- Occupancy Certificate: A document issued by the local authority certifying that a property is safe for occupation, typically issued after the completion certificate is obtained.
- Power of Attorney (POA): A legal document authorizing one person to act on behalf of another in legal or financial matters related to property transactions.
- Encumbrance Certificate: A document verifying that a property is free from any legal or financial liabilities such as mortgages, liens, or pending litigation.
- Sale Deed: A legal document transferring ownership of a property from the seller to the buyer, executed after the payment of the full purchase price.
- Joint Development Agreement (JDA): An agreement between a landowner and a developer for jointly developing a property, typically involving revenue sharing or sharing of the constructed area.
Property Ownership Types
- Freehold Property: Property owned outright by the purchaser, giving them full rights over the land and buildings without any time limit.
- Leasehold Property: Property leased for a specific period, after which ownership reverts to the lessor unless renewed.
Taxes and Fees
- Stamp Duty: A tax levied by the state government on property transactions, payable by the buyer or seller depending on the nature of the transaction.
- Registration Fee: Fee payable to the government for registering a property transaction, typically a percentage of the property’s value.
- Capital Gains Tax: Tax levied on the profit earned from the sale of a capital asset, such as real estate, calculated based on the difference between the sale price and the purchase price.
Regulatory Body
- Real Estate Regulatory Authority (RERA): Regulatory body established to protect the interests of homebuyers and regulate the real estate sector, ensuring transparency, accountability, and timely delivery of projects.
By familiarizing themselves with these terms, realtors in India can enhance their understanding of the real estate market, provide valuable guidance to their clients throughout the buying or selling process. Remember, a well-informed realtor is a successful realtor!
