Posted On Jan 2, 2020 by Rajat Homes
Owning a home has always been a matter of pride and a valuable asset for Indian households. And home hunting is an adventurous journey. Over the years, the real estate industry has gone through exponential transition – with a professional approach, new terminologies are introduced. A lot of local terms are replaced by standard terminologies. If you are a home buyer, you may come across several realty jargons that will leave you confused. There are a few standard terminologies that you must know before plunging into the home-buying business.
So, here is A-Z glossary of frequently used terms that might guide you through a confusing legal process and you do not feel completely lost.
Amortization is an accounting technique that refers to the schedule of your mortgage payments spread out over time. It is the process of paying off the debt over time in regular instalments combining both interest and principal in payments to repay the loan in full by its maturity date.
It refers to a lump sum amount that needs to be repaid to the lender after a certain stipulated period of time to close the loan. Where the payments are not fully amortized over the term of the loan, a large sum of money (in some cases the full principal) is paid at maturity to clear the debt.
Carpet area refers to the actual area inside your house that you can use to lay a carpet. It is the net usable area that includes the thickness of the internal wall but excludes balcony or terrace.
It refers to the legal document that is signed by the buyer and seller in order to transfer the ownership rights of the property. Deeds become public records in most states, so an unrecorded deed may create ownership disputes for heirs once the original owner dies.
Home equity is the actual amount of an asset owned by you. If you borrowed money to buy a home, your mortgage lender has an interest in the property until the loan is paid off. Technically, your house will be used as collateral for your loan. Thus, the lender secures the interest of the home by getting a lien on the property. As you pay down your loan, your home equity increases.
It refers to the legal process where the lender tries to recover the remaining loan balance if the homeowner fails to pay off outstanding debt on the property. The lender either forces the sale of the property or it enters a foreclosure auction. If it is not sold, the lender takes hold of it.
The term refers to a neighbourhood having strictly controlled entrances for pedestrians and automobiles. In Kolkata, gated communities are mostly preferred in modern residential complexes. Just like Rajat Avante, the residential property near Joka Metro,is offering gated community where 24×7 CCTV services ensure increased safety and security for the residents.
It is the initial sum of money paid to reserve or confirm the sale of a property before the full deposit is paid.
The Indian Stamp Act amended in 1899 acts as fiscal legislation that regulates the payment of stamp duty to the local government in all real estate transactions.
Joint Ownership Agreement actually refers to shared ownership of properties. Two or more persons agree to jointly own property for a variety of reasons that may include convenience in transactions, succession preferences, taxation benefits, etc.
This clause allows the seller to pick the best deal by continuing to stage their homes for inspections to other buyers for sale. Eventually, they can “kick out” the existing buyer if the seller receives a better offer from another buyer without a home sale contingency.
Land tax is the state tax that is levied on the purchase of a property, paid by the owner/co-owners of land. The tax is collected by the municipal body that helps the authority to fund essential services like maintenance of roads, transport, drainage and other civic facilities. The tax receipts are very important documents in case of legal disputes.
Mutation is an alteration of title ownership of a property in the records of the Corporation when it is sold or transferred. Once the mutation is done, the name of the new owner is updated in the land revenue department and the government is able to charge property tax from the rightful owner.