Top 5 Confusing Real Estate Terms
Are you aware well with the various terms that are used in Real Estate? Do you know the meaning of most commonly used terms in Real Estate? Well, for most of us, the answers of above questions could be NO. Not a big deal, as today we deal with such complicated terms and will eliminate your confusion. Here is an attempt to simplify such terms that are most commonly used while doing real estate deals.
FAR also known as (Floor Area Ratio) or FSI (Floor Space Index) is the ratio of a building’s total floor area upon which building is constructed. It is used by local governments in zoning codes and this term also limits imposed on such a ratio. This ratio may vary or different based on locality, nature of land, government regulations, etc.
Carpet area is the area enclosed within the walls of the house, office, etc. This is the area for your space which is personal and you should concern about it. This area includes all rooms like living, bedrooms, dining, dressing, Pooja, store and other rooms. Moreover kitchen, bathrooms and balconies are also included in Carpet Area.
Built-up Area is the actual used area of a flat and is the carpet area + thickness of outer walls and the balcony. It can be calculated by attaching utility ducts area within the property. This term is however not so crucial while purchasing the property as a number of builders sell the property on Super Built-up Area. This term is only important in context of state property taxes that are charged on Built-up Area. Area include under Built-up Area are whole carpet area, internal as well as external walls or utility ducts.
Super Built-up Area
Super Built-up Area = Built-up Area + relative space of common areas like lobby, lifts section, stairs, pipe or ducts, air ducts, community centres, clubs, etc. Super built-up area is calculated by attaching the carpet area which may vary from 20%-50%.
For any transaction related to property, stamp duty is required to be paid as per the 1899 Indian Stamp Act. The Stamp Duty is nothing but a tax that you pay to the Government when you purchase a property. Even today in many Indian states this act is applicable and the Stamp Duty is levied according to the percentage of property value in order to conduct a property transaction.