In my first post (BYDH-1) in this series, I had
introduced the subject by writing briefly about certain homework to be done before visiting the Sales Office of the builder. Now before proceeding further on that I’ll take an aside and explain in brief a few important real estate terms that every home buyer should be conversant with.
Important Real Estate Terms
1. Agreement for Sale – Also known commonly as the Sale Agreement, means an agreement entered into between the promoter and the allottee.
2. Allottee – Any person to whom a plot, apartment, or building has been allotted, sold (whether as freehold or leasehold), or otherwise transferred by the promoter.
3. Apartment means a separate and self-contained part of any building, located on one or more floors.
4. Carpet Area means the net usable floor area of an apartment, excluding the area covered by the external walls, services shafts, balcony/veranda, and exclusive open terrace area. However, it includes the area covered by the internal partition walls of the apartment. This is different from the Super Built Up area which includes the area of walls & staircase etc and hence is more than the Carpet area for the same building.
5. Commencement Certificate means the certificate (also known as the building/construction permit) issued by the competent authority to permit the promoter to begin development works on immovable property, as per the sanctioned plan.
6. Completion Certificate means the certificate issued by the competent authority certifying that the real estate project has been developed according to the approved sanctioned plan, layout plan, and specifications.
7. Deed of Sale also referred to as the Sale Deed or the Conveyance Deed is the document through which the ownership title is transferred from the seller to the buyer. This is the document that is registered at the time of completion of the sale.
7. Escrow Account means a separate/dedicated bank account operated by the promoter for depositing the money received from the prospective homebuyers and where certain conditions are attached for the utilization of these funds.
8. Garage means a place within a project having a roof and walls on three sides for parking any vehicle but does not include an unenclosed or uncovered parking space such as open parking areas.
8. Occupancy Certificate means the certificate issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructures such as water, sanitation, and electricity.
9. Promoter means – (i) a person who constructs or gets constructed an independent building or a building consisting of apartments, or converts an existing building into apartments, for the purpose of selling.
(ii) a person who develops land into a project for the purpose of selling the plots in the said project.
(iii) any development authority, public body or Co-operative Housing Society, etc. engaged in similar activities as mentioned in (i) & (ii) above.
(iv) any other person who acts as a builder, colonizer, contractor, developer, estate developer, etc.
(v) the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale.
(vi) any person who constructs any building or apartment for sale to the general public.
10. RERA – RERA Refers to the central law named the Rear Estate (Regulation & Development) Act, 2016.