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Getting ready to buy a house? Real-estate terms you need to know well

PM Modi’s demonetisation move is all set to create an exciting change in the real estate sector and its future in India. Though, it’s all a wait and watch game, we say it’s time you brushed up your knowledge about the real estate sector. This may come handy if you are looking at investing in a house.

Registration: A legal documenting and subsequent recognition of a transaction under the State. This can be a rental or capital transaction and there is a fee attached to registering a transaction. The fee varies across states.

Carpet Area: This is a commonly used term measuring area of the property from wall to wall. This is the actual area, which you can use to put up furniture and do up your personal space.

Built-Up Area: This is also called the plinth area. It covers total area of the house, and is usually calculated by adding utility ducts within the property, and all internal and external walls.

Super Built Up Area: It includes everything from apartment lobby to lifts, common staircase, ducts and recreation areas.

Co-ownership: If an immovable property has more than one owner, the status of the property is known to be of the Co-ownership type. This Co-owner can do anything he wants with his part of the property, as long as he does not affect the share of other Co-owners.

No Objection Certificate or NOC: Issued by the local authorities, NOC determines that the property is in order and in compliance with the official guidelines and rules.

Occupancy Certificate or OC: This suggests that property is duly complete for stay. Local authorities issue this certificate after receiving clearance from water, electricity, sewerage, fire fighting board etc.

Clear Title: A clear title is basically that it is free from claims or any legal dispute and all encumbrances regarding the ownership of the property.

F S I or Floor Space Index / F A R or Floor Area Ratio: The Urban Development Department (MAHARASHTRA REGIONAL AND TOWN PLANNING ACT, 1966) says that “Floor space index (FSI) means the quotient of the ratio of the combined gross floor area of all floors, excepting areas specifically exempted under these regulations, to the total area of the plot, viz. Floor Space Index (FSI) = Total covered area on all floors divided by Plot area”

It helps to know that it is also called the floor area ratio or FAR, floor space ratio or FSR, or even site ratio or plot ratio.

You will find most or all of these key terms while finalizing a home. Knowing them well will give clear insight about the property, and help you make informed decisions.

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