Real Estate Glossary

Allottee - "Allottee" in relation to a real estate project refers to the person to whom a plot, apartment or building  has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise

Apartment :- "Apartment" which means  block, chamber, dwelling unit, flat, office,showroom, shop, godown, premises, suit, tenement, unit or by any other name, means a separate and self-contained part of any immovable property, including one or more rooms or enclosed spaces, located on one or more floors or any part thereof, in abuilding or on a plot of land, used or intended to be used for any residential or commercial use such as residence, office, shop, showroom or godown or for carrying on any business, occupation, profession or trade, or for any other type of use ancillary to the purpose specified.

Completion certificate:- It means the certificate which is issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws .

Occupancy certificate :- It means the certificate by whatever name called is  issued by the competent authority permitting occupation of any building, flat,or apartment, as provided under local laws, which has provision for civicinfrastructure such as water, sanitation and electricity.

Internal development works:- It includes  roads, footpaths, water supply, sewers, drains, parks, tree planting, street lighting, provision for community buildings and for treatment and disposal of sewage and sullage water, solid waste management and disposal, water conservation, energy management, fire protection and fire safety requirements, social infrastructure such as educational health and other public amenities or any other work in a project for its benefit, as per sanctioned plans.

External development works:- It includes roads and road systems landscaping, water supply, seweage and drainage systems, electricity suply transformer, sub-station, solid waste management and disposal or any other work which may have to be executed in the periphery of, or outside, a project for its benefit, as may be provided under the local  laws;

Penal interest:- It means the rate of interest payable by the promoter to the allottee in case of delay in possession and other fault and the interest by the allottee to the promoter in case of delay payment/late payment of installments.

Sanctioned plan :-  It means the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan and such other plan and includes structural designs, if applicable, permissions such as environment permission and such other permissions, which are approved by the competent authority prior to start of a real estate project.

Advertisement :- It means any document described or issued as advertisement through any medium and includes any notice, circular or other documents or publicity in any form, informing persons about a real estate project, or offering for sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, buildingor apartment or to make advances or deposits for such purposes.

Agreement to Sale :- It is the most important document which is created to mention and define the terms & conditions ,clauses and concerns, Interests and obligations, Rights & limitations  entered into between the promoter and the allottee to continue their long relationship.  It specifies  the particulars of development of the project including the construction of building and apartments, along with specifications and internal development works and external development works, the dates and the manner by which payments towards the cost of the apartment, plot or building, as the case may be, are to be made by the allottees and the date on which the possession of the apartment, plot or building is to be handed over, the rates of interest payable by the promoter to the allottee and the allottee to the promoter in case of default, and such other particulars, as may be prescribed.This is also called as Builder Buyer Agreement.

Carpet area:- It is the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

Common areas :- It includes staircase and lift lobbies, common entrances and exits of buildings, fire escapes , stair cases, lifts , parks, play areas, open parking areas , common storage spaces, common basements, terraces, accommodation for watch and ward staffs or for the lodging of community service personnel , all community and commercial facilities as provided in the real estate project .

Unfair Trade Practice :- — It means the practice of making any statement, whether in writing or by visiblerepresentation which,— falsely represents that the services are of a particular standard or grade; which represents that the promoter has approval or affiliation which such promoter does not have; which  makes a false or misleading representation concerning the services; where the promoter permits the publication of any advertisement or prospectus whether in any newspaper or otherwise of services that are not intended to be offered  and wherein the promoter indulges in any fraudulent practices such act and activities are termed as Unfair Trade Practice.

Demand Letter :- It is a document, Invoice or letter issued by the promoter to the allottee to  raise the demand for money against the construction done on the project side. The alottee is required to pay the raised amount mentioned in the demand letter within the prescribed time or else the promoter will apply penal charges on the delay period.

Basic Sales Price(BSP) -   It means the price of the flat ,apartment or plot , excluding some of the charges for the facilities and amenities such as covered parking, club membership .PLCs etc.

Token Money or Booking Amount:- It is amount given by the allottee as initial payment to the promoter when the sales interest has been agreed.

Floor Area Ratio FAR :- It means the total square feet of a given building or project divided by the total square feet of the plot or land proposed for the building and construction .

Force Majeure : - It means a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project. It is the situation where it is beyond anybodys control and where it becomes impossible to continue the development work.

Pre Payment Charges  :- It refers to the situation or time wherein the borrower wills and wants to close the existing loan before the maturity of  loan period. The banks normally charges for the foreclosure of the loan.

Margin Money : Banks and NBFCs follow different criteria of offering home loan and normally loans are offered up to 80-85% of the value of the property and the balance amount has to be paid by buyer before the client draws on the loan money which is the down payment or margin money. The customer own contribution towards the property purchase is termed as margin money.

Power of Attorney (POA) :-  The person who has authority to execute and sign the documents on behalf of the grantor of the power. It is important to consider the trustfulness of the person before giving the power to anyone.

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