Buying a home is an exciting task as well as daunting too. This is because you are about to deal with real estate. It involves several deciding factors that are carefully dealt with. One such factor – real estate terms, not knowing them can cost a fortune.
Here is a list of real estate terms that one should know before buying 3 BHK luxury flats in Mohali.
1. Carpet Area
The carpet area is the area within the walls that you can use to move around or to lay the carpet. This area space of a residential property is dedicated to a terrace as well as a balcony. But, it does not include the area as open spaces, such as the lobby, stairs, lift, and so on.
2. Built-up Area
The built-up area refers to the entire periphery of the property, including the thickness of the outer as well as inner walls, the carpet area as well as the area utilized by balcony and terrace. However, like in the case of carpet area, built-up area excludes the lobby, stairs, lift, and so forth.
3. Super Built-Up Area
The super built-up area includes the area of the entire extent of the house, i.e., the built-up area along with other usable areas such as corridors, lobbies, stairs, lifts, and so on. When it comes to apartment buildings, common spaces such as lifts and hallways are divided proportionately amongst flat owners.
4. Per Square Foot Rate
When it comes to buying or selling off the property, the deciding unit for the price is ‘square foot’, hence the term per square foot rate. While plots of land and bungalows can be easily measured in square feet area, the price for flats is set on the basis of the super built-up area.
5. Floor Space Index (FSI)
Floor Space Index refers to the ratio of the total built-up area and the actual plot area which is permitted by the government. The higher the FSI, the bigger is the built-up area. The developer must bring the FSI for the buyer before they finalize the deal.
6. Freehold Property
Freehold property is the property the owner of which has full and unconditional ownership. This term is usually used in the context of the property, where the owner has complete rights over the land as well as the building that stands on the area.
7. Real Estate Broker
Also known as realtors, real estate brokers are essentially the experts who have expertise in the business of buying and selling properties. They help the seller of a property find some potential buyers and vice versa. It is the responsibility of the broker to act as a reliable medium between the seller and the buyer, during the process of purchase of a commercial, residential or industrial property. The broker usually takes a percentage of the agreed price of the property as their fee.
8. Home Loan
Banks, non-banking financial institutions, and housing finance corporations offer home loans. It is also offered by online lenders to buyers who wish to purchase a residential property but do not have enough money to do so.
Conclusion
Before you look for 4 BHK luxury apartments in Mohali, you need to have proper knowledge about the property terms so you can invest in your dream property with no doubts. Knowing about this will help you investigate the selected property for better decision-making.
If you are new to real estate before you buy a property, you are suggested to dig deep into the insights it offers for better understanding. Don’t get deceived by figures and terminology, instead, educate yourself.
