Indian real estate is scaling a new heights and providing buyers, a variety of options.It is an overwhelming moment in our lives when we decide to buy a house of our own, a house where we can live on our own terms. Owning a house has also become an esteem issue these days and a priority for any individual. A novice in the real estate market often lands up perplexed by the complicated real estate terminology and ends up taking hasty decisions. Hence, it is imperative for us to brush ourselves with the basic terms in the real estate business.
To take a precise decision you need to be aware of the following terms:
Carpet area: As the name suggests the carpet area refers to the area in the house where you can place the carpet. So the area that is enclosed within the walls of the house, office or any other space which is basically the functional area available is called the Carpet area. It also includes the stair case within the unit, but any common area outside the apartment like stair case, security room, etc. is not included.
Build up area: Build up area is larger than the carpet area and includes the carpet area including the thickness of the walls in addition to the balconies, terraces or lawns.
Super build up area: it has a larger perspective than the above two. It includes the build up area and any common area like lobbies, lifts, clubs etc.
Floor space index: also known as floor space ratio refers to the ratio of the buildings complete floor area to the dimension of the portion of land on which is being constructed. In simple words it is the ratio of the total carpet area of all the flats included in the project to the entire land area of the venture.
Site plan: The graphical depiction or the structure of drawings which gives the detailed overview of the whole project. It includes the blue print of the building together with the sanitation, parking, water, lighting, parks, drainage and sewer and provision of gardens or any other basic amenity as promised by the builder.
Floor plan: The floor plan is scaled diagram of an over view of the whole building, one floor of the building or a room alone of the building. It is important and is needed to help in designing of furniture & fixtures, wiring and a lot more.
Capital Rate: It is the return on the real estate property in which investment has been made. It is the expected income that the property can create. So basically it is used to calculate the estimated return the investor will get out of his investment.
Circle Rate: The minimum value set by the state government’s revenue department or the local development authorities at which the sale or transfer of a commercial property or a plot occurs. The circle rate may vary area wise in a city. This varies from the market rate of the same property.
BSP: Basic Sale Price or BSP refers to the main cost of the property as announced by the developers. It is the actual price the developer demands.
PLC Charges: Preferential Location Charges or PLC are the charges levied by the builder if you have particular preference of a flat in the project, say a flat with the lake view, etc. So you have to pay extra money to get a flat of your choice.
EDC Charges: External Development Charges or EDC are the charges that are incurred by the colonizer in obtaining license from the Govt. for carrying out external development work like sewage, roads, drains, water supply, solid waste management etc. These charges are finally passed on to the buyer.
IDC Charges: Infrastructure Development Charges or EDC are the charges that are collected by the state government from the builders to use it in major infrastructural projects for development of the state.
CLP: Construction Linked Plan or CLP is a plan where the buyer has to pay the developer on basis of the completion of the construction of the building. For instance you have to pay 5 to 10 % of the cost as the construction of floor is completed one by one.
PLP: Possession Linked Plan or PLP is a plan where the buyer can make the payment in two halves. The first 20 -25% of the total cost is paid on the booking of the flat and the remaining on the possession of the flat.
Flexi Payment Method: In flexi payment method the buyer is suppose to pay 1/3d of the total amount at the booking time, the next 1/3d is linked to the milestones decided and the last 1/3d at the time of the possession.
Bank Subvention Scheme: It is the new form of house financing by banks in which the person who has applied for the loan against property under construction need not to pay the Emil’s till the fixed period of possession, the same will be paid by the developer. At present the banks are undertaking this scheme only for Category A developers.
Assured Return Plan: Assured returns means the rate of return which is promised to the buyer by the developer and is offered to all the clients attached to the under construction project. The rate is decided in advance by the builder.
We have tried to cover most of the technical terms in the real estate business in the above article. Understanding these technical terms will equip you well to hold a confident conversation with the builder and take an appropriate decision while buying your first home!