Property dealing or indulging in real estate matters in any capacity, whether buyer or seller, requires you having basic knowledge about this field. There are certain terms, like in any other field, that are commonly used in Realty and Infrastructure sector and knowing them can help you understand the subject better in order to click better deals as well as to gain trust of the party you deal with. Also it leads to more careful and clear dealing, as parties identify that the people associated with the deal are aware of the subject and they cannot be made fool, while using the technical terms.
So, why not begin with real estate itself! The dictionary meaning of Real Estate means collection of land and buildings. Thus, Property Dealing terms should cover various aspects of selling, buying or renting various kinds of properties.
If we take a layman perspective into account, the terms covering `Property Dealing' has to do with various aspects. Some are related to property type, a few others surround construction and there are still others that are commonly used in actual transaction. Considering the vastness that is typical of real estate sector, we can classify terms in this way.
When you are out to buy a property, you stumble across a variety of options that you might not have even thought of. Lands or plots, flats, condos, etc are just the start. You will find yourself surrounded by very vague terms like 1 BHK, 2BHK, 3BHK and the situation may become more amusing when something utters 1 and half BHK. Having seen these terms floating around us for quite some time, it is understood that BHK is nothing but Bedroom-Hall-Kitchen. Another classification, very popular,is on the basis of income groups. LIG, MIG, HIG are other terms that tell you how cruel the real estate can be in dividing people on the basis of income they earn. But, knowing these terms can really be important to find what you are bargaining for. Going further, there can be something nastier than this. You may be forced to struggle with terms like 690 sq ft, 2000 sq ft and likewise. At the end of the day, a buyer needs a place that fits the budget and also, whatever he spends, the property should be worth all of that. So, knowing basic terms related to real estate, and acquiring knowledge about the property type is essential to know, how the offering would be like in actual form finally, and whether it fulfils all the expectations or not.
Apart from sq ft jokes happening to you, be prepared to find terms like FAR, FSI, built-up area, super-built up area, carpet area to leave you more baffled. These terms are more important to know, especially when buying a flat in multi-dwelling unit is on cards. A building has common areas utilized by all the residents. Are you responsible for paying for them? How rate per sq ft is being defined by the seller? Is it costing you more and is justified?
Such knowledge is crucial for ascertaining whether you have been charged correctly or not. Buying a property will certainly call for lots of comparisons and evaluations. Thus, how much area is being charged to you by various builders, forms one of the many premises that you need researching upon. Are all these charges in sync with the prevalent laws?
All these doubts and issues point towards one necessity i.e. clarity and in fact, crystal clear clarity. Otherwise, you can land up paying for things which you not entitled to. Also, knowing about various types of areas pertaining to property helps you know the final structure better.
A land or a house, or a flat buying needs lot of documentation. There is urgent need of an expert eye that can sift through the documents without missing any crucial information. There have been cases when the property was not freehold, and it was not clearly implicated. There have also been cases where terms like encumbrance put the buyer in soup later. All countries have their own set of legal terminology. Therefore, you must learn to find what any term means in your country's set-up.
Do I need a conveyancer? What would he do? Is inspection not sufficient by me? The more you indulge deeper into the process of buying property, the more confused you become because of terms and questions that many a times, may even miss your thinking hat. So, the key is to learn, to be aware and to have confidence that makes it easier to close the better and clearer deal as per your requirements.
Loan and mortgage ideally should be looked upon as saviors during tough times. But, thanks to tax system in India, these have become badges of pride. While dealing in property matters, loan is made most essential of all the requirements. Thus, terms like fixed rate, floating rate, cooling off period, earnest money deposits etc are sure to cross your ways when you try either to get some equity out of the property or need financial help to acquire the property.
So, why not join a Property Education and Training program that gives you clearer overview of all the terms common to Real Estate World! Join it now and see how it helps you groom into a specialist that has answers, mind you, your own answers for all the questions that surround property dealing.
