Decoding Five Commonly Used Real Estate Terms
While buying a property, have you come across terms that you are familiar with? Let us shed light on five commonly used real estate terminologies to help you navigate the realty market better.
- Carpet Area – We often hear this term used by real estate developers and brokers alike. But, what exactly is it? According to RERA’s definition, it is the net usable area of an apartment, including the areas covered by the internal partition walls of the apartment. However, this excludes areas such as the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area. In simple terms, it is the area that can be covered by the carpet.
- Built-Up Area – Another most commonly used term is built-up area. It refers to the area arrived at by adding carpet area and the thickness of the inner walls, outer walls and the area of the balcony.
- Super Built-Up Area – It comprises carpet area and the areas covered under common or shared spaces, along with other areas such as balconies, areas occupied by walls. Usually, the common areas accounted for in this include lift lobby, corridors, staircase, amongst others. Super built-up area is also known as the saleable area.
- Stamp Duty – It is a tax levied by the State Governments on the sale of a property or for legalizing the ownership of a property. On an average, the stamp is in the range of 5% to 7% of the market value of the property. Due to the pandemic, many State Governments have slashed the stamp duty. Most recently, Karnataka Government revised the stamp duty to 3 percent for properties between INR 35 to INR 45 lakh.
- Occupancy Certificate – Issued by a local Government agency, an Occupancy Certificate (OC) is an essential document that confirms the completion of a project or property as per the laws/regulations applicable and plans. Essentially, it certifies that a particular property is ready to live in.
Now that you know what these terms mean, approach the buying process confidently. To find your dream home, reach to us on info@ozonegroup.com.
