Buying a property is truly an achievement, Here are a few terms the knowledge of which will help you in Booking and Properties.
RERA
In Real Estate (Regulation and Development) Act, Government which safeguards the interest of the home-buyers. This act lays rules and regulations pertaining to the quality of construction, timely completion of projects, building plan and design specifications. Choosing a RERA certified builder and RERA certified project in Chennai real estate provides a certain level of safety of investment to the buyer.
Carpet Area
This is the area of the house that is practically available to you for use, where you can move around or lay a carpet. This includes the balcony area and the terrace are.
Built-up Area
Carpet area of your house + the thickness of the outer as well as inner walls is the built-up area.
Super Built-Up Area
Built-up area of your house + apportioned part of other usable areas such as corridors, lobbies, stairs, lifts become the super built-up area. The common areas are proportionately divided amongst flat owners.
Sale agreement
Once the buyer and a seller reach an agreement, they sign a sale agreement. This document lists the terms and conditions based on which the transaction would take place later.
Sale deed
The builder signs a Sale deed with the home buyer at the actual time of sale of the property. This indicates that the sale of the property is complete and the property buyer is the new owner of the property.
Common terms Related to Home Loan – Once you apply for home loan for the purchase of the property, you would come across these terms
Down payment
Banks lend about 80% of the property value as loan to the buyer, the rest 20%, called the down payment, is paid by the homebuyer to the builder.
Fixed rate of interest
The interest rates on the home loan is constant throughout the entire tenure of the loan.
Floating rate of interest
The interest rates on the home loan varies during the tenure of the loan based on the prevailing interest rates in the market.
EMI
Equated monthly instalment (EMI) is the interest paid by the homebuyer to the bank every month for the loan availed. In its agreement with the buyer, the bank specifies the date on which this payment should be made. In the case of Under construction properties, Loan amount is disbursed in instalments and the interest paid during the construction phase is called the Pre-EMI. This is the interest for the loan amount and does not contribute to repayment of the loan principal
These are some of the commonly used terms in the real estate industry the knowledge of which will help in the process of home buying. As a home buyer looking to make the very important decision of choosing the dream home, equip yourself with the latest happenings in the Chennai real estate, choose a developing locality, a reliable builder and an aspirational project built with quality and futuristic amenities.
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