Track2Realty tries to simplify the real estate terminologies in practice that often confuses the buyers. There is no rocket science in real estate that buyers can’t adopt and understand for their own better understanding of the most valuable asset called house.
Carpet Area is the area within the walls of an apartment that is for the exclusive use of the buyer. While computing the carpet area, the terrace and balconies are usually considered as half the actual area. Normally in large societies with many common amenities, the carpet area could be as less as just 2/3rd of the built up area.
Built-up Area includes the carpet area and thickness of external walls, internal walls, lobbies and corridors, basements, atriums, in some places lift areas, staircases, generator & electricity rooms etc. Normally while purchasing a flat you will have to pay for the built up area where as you will get to occupy or use exclusively only the carpet area.It is typically 10-20 per cent more than the carpet area and is also sometimes known as the plinth area.
Super built-up Area includes common amenities, such as the area of lift shafts, lobby, and corridor, proportionately divided among all flats. The common usable areas, such as a swimming pool, garden and club house, may also be included in it. Per square foot rate quoted by the developer is typically applied on the super built up area to determine the value of the flat. This is the reason super built-up area is also sometimes referred to as the saleable area.
Floor Space Index (FSI) is the ratio between the total built-up area and plot area available allowed by the government for a particular locality. In plain English this means, the buildable area on a plot of land. An FSI of 1 means that the area of construction should be equal to the area of the plot—for example, a plot of 10,000 sq ft can only have a built-up area of 10,000 sq ft and no additional construction would be allowed.
Premium FSI refers to permission obtained to build extra floor space by paying a premium. For example, if the normal FSI in the area is 1.5 the builder can pay premium FSI charges (a certain per cent of the guideline value of land) and build area more than 1.5 times the plot area. This would help builders better utilise space where the price of land is prohibitively high, resulting in extra value for the buyer.
Guideline Value & Market Value Guideline Value of a land is the value of the land as determined by the government, based on the facilities and infrastructure growth in that locality. The stamp duty and registration charges for registering a property deal, is based upon this Guideline Value. The Guideline Values are revised periodically to have them in sync with the Market Value. Market value as the name denotes is determined by the demand and supply forces in the market and factors like type/age of property, quality of construction, location, infrastructure and amenities available, maintenance etc. Market Value of the property is the price that the property commands in the open market. This will invariably be the price, which you will pay for your property. Depending upon the location and the city the difference between guideline and market value can be low or high. In Indian cities the difference range is between 30-70 per cent.
Stamp Duty is the tax paid to obtain the stamp paper on which the sale deed is written and signed by both the parties prior to registering the same. The payment of proper Stamp Duty on instruments like Sale Deed bestows legality on them. Such instruments get evidentiary value and are admitted as evidence in the court of law. Stamp duty is payable usually by the transferee/purchaser, or if agreed by both the seller and buyer equally.
Registration Charge is the fees associated with getting the legal title registered in the buyer’s name. This legal activity is conducted in the sub-registrar’s office in the local court.
Common Area Maintenance (CAM) is a charge that is payable after possession of the property and is recurrent. Common area maintenance charges is the specified share of certain defined costs that include maintenance, repair, replacement, inspection, improvement, operation, and insurance of the common area shares by all the residents of the building together with any costs allocated to administration and overheads.