Real estate has transformed into an organized sector over the past few years. Developers have become more responsible since the government has introduced laws to safeguard buyers' interests. In addition, standardization across the country has led to introducing some terminologies that developers use when they market their products. According to a report, by 2030, Indian real estate will reach one trillion dollars, which is a massive growth.
If you plan to buy a house, you should be aware of these terminologies as these facilitate easy comparison of the best residential apartments in India. Here, we will discuss the major terms and how you can use them to evaluate and know if you are investing in the right assets. RERA Act
This act was introduced in 2016, and since then, all developers should follow the guidelines stated in this act. The aim was to regulate, establish transparency, and initiate builders' liability irrespective of their size and brand. Here, developers need to apply for a license and share every possible detail with the dedicated government body. The license is granted only when it is confirmed that the land is not disputed and the builder is credible enough to execute the proposed infrastructure.
The state authorized body assigns the developer a RERA number. This number indicates that the proposed development complies with the law. Super Built-up Area
Buying a flat in a high-end residential complex is a crucial decision, and thus, you should gather all possible information before making a choice. When you express interest in a project, the first thing that the developer will share is the super built-up area. This area includes the flat area and areas under common use like lobby, staircase, lifts, shafts, corridors, etc. The common areas are divided proportionately amongst flats in the building since every resident will be using them. Carpet Area
Whenever you consider buying a residential property, check the carpet area. It is the actual floor area of your apartment. According to the RERA rules, the carpet area does not include a verandah, balcony area, shafts. Also, the area consumed by external walls is excluded, which ultimately leaves you with a net useable area. The internal walls are included in the carpet area. Understanding the carpet area gives a fair idea of how big your house will be. It is advisable to compare projects based on carpet area. BBA- Builder Buyer Agreement
If you are interested in buying an under-construction unit, you should sign a BBA. As the name suggests, this agreement is signed between the builder and the buyer. This legal document contains all the property details like carpet area, a well-furnished house if the builder promises so, completion date, and payment details. This is an important document since both parties are liable to work according to the agreed terms and conditions. Occupancy Certificate
An occupancy certificate is a mandate for every developer. Once the project is complete, the builder applies for this certificate. If granted, the property has been completed as promised by the builder, and now people can start living. The certificate is only given after checking whether basic facilities like sanitation, water and electricity are connected well. Homebuyers should always check the certificate if buying a ready-to-move-in project. Free Hold and Lease Hold
Real estate experts usually talk about freehold and leasehold property. However, there is a difference between both types of property:
- Freehold means completely and legally owned by the buyer. No other party like the government or even the developer has right on it. This term is widely used for land or plots. Here, the owner reserves all rights to use, transfer or build property.
- Leasehold stands for property where the government is the real owner and may lend the property to the builder for a given time frame. People buying apartments built on leasehold land will have rights only until the lease deed is valid.
Reputed and trusted developers always follow government directives since they wish to create a strong brand in the market. Good infrastructure and a transparent process is the key to customer satisfaction. If you plan to buy a home in the best residential complex in Rajkot, you will get the best choices here.