Real Estate Terminologies You Should Know About

December 25, 2022

Every industry has its own terminologies that not everyone is aware of. A simple drawing in our eyes can be described as a doodle, a scribble, a sketch, or a drawing according to the work of the lines. Only the people into art can simply differentiate that by the correct term. Just like that, terminologies of specific industries are mostly only known by the people in those industries. The same goes for the real estate industry in India. It has its own terminologies that many people need to learn or have very thin information about.

But it is very essential to understand some terms used by the people in the real estate industry when it comes to buying a property in a real estate project in Surat, as you can get confused by the terms and end up losing money or being cheated.

Terminologies/ Things You Should Know about Real Estate Industry

Here are some commonly used terms and things you should know about the real estate industry:

Difference Between Carpet Area/ Built-Up Area & Super-Built-Up Area

Carpet area: The carpet area is the actual area that you live in, which excludes the balcony, external walls & the terrace.

Built-Up Area: The Carpet area + the balcony, the external walls, the terrace & other habitable area is considered built-up area.

Super Built-Up Area: The built-up area + the common areas of the buildings, the lift, the lobby, the corridor, the pools, the garden, the clubhouse, etc.

The carpet area is usually 70–75% of the built-up area. And according to the real estate regulation and development act guidelines, it is mandatory to mention the carpet area of the apartment, by the developer, as the sale price of a home unit should be calculated by the carpet area. These terms sound very similar to each other but hold a very big difference in reality. So, you want to be aware of these details when you purchase a new property in surat.

Completion Certificate

Just like the name suggests, the completion certificate is a certificate that is given to the developer for completing the project. The authorities run a thorough inspection where they validate if the project has been completed according to the approved plan and reaches the standards set by the municipal corporation. The certificate confirms the approved development and also contains all the necessary details about the building, like the location, the details of the developer, and more. One should take possession of the property only when the project has qualified for the completion certificate and has gained one. Otherwise, that means the building is illegal and can create problems in the future.

Leasehold Property and Freehold Property

Leasehold Property

A leasehold property is a property that gives you ownership and control of the property for a certain period of time. It resembles the concept of renting the property, but for a more extended period of time and with more, or most control over the property. You can reside there for the specified period of time according to the lease and after which the property will be handed over to its original owner. Most of the leases are around 99 years and can also be extended for a longer period of time. In old times, many people believed in getting residential property in surat on lease instead of buying.

Freehold Property

On the other hand, a freehold property means the property is all yours. After the purchase, you become the owner of the property permanently. You are entitled to make use of the property however you like. You can sell it, rent it, renovate it, etc. all under the local rules and regulations of course. Most buyers opt for freehold residential and commercial property in surat as chances of increment in its value are higher.

Builder Floor and Multi-storey Apartment

These terms are not quite popular but the difference between both is a very popular question in every buyer’s mind.

Builder Floor

A builder floor is an independent floor in a low-rise building, which means there is only one apartment on the entire floor. Generally, they are constructed at a small plots in the local residential colonies and are low-rise with 2- 4 floors. Most buildings with a builder floor concept have a 2 BHK apartment.

Multi-Storey Apartment

A multi-story apartment in simple words would be ‘an apartment with more than one flat on one floor. Generally, the multi-story apartments are high rise with more than 5 floors, each floor containing at least 2 and mostly more than 2 flats on the floor, sharing common facilities like club house, swimming pools, gardens, etc. according to the space of the project.

If you are buying your first luxurious flat in Surat then you must understand both concepts. Both have their own perks and cons, which highly varies from person to person. As mentioned above, the builder's apartments are mostly available in local residential colonies, whereas the multi-story apartments are getting quite popular and are located at new prime locations in the cities.

There are many more terms that the real estate industry has for their own use, that generally, buyers are not aware of. So, if you have started looking for new flats in Surat then you must start researching the new words you hear from the industry people. So that you do not get confused with any words and make no wrong decisions because of that.

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