Below, is a comprehensive list of Real Estate terms, which will be updated regularly. Readers are encouraged to become familiar with the terminologies used in context of Real Estate Transactions.
Also known as built-up area, is the total covered area of the apartment. In other words, it is the area within and including outside walls of the unit. It can be calculated by adding carpet area, areas of the utility ducts within property unit and internal & external walls of the unit.
A power of attorney is a legal document that authorizes another person—called an agent—to act on behalf of the person who created the power of attorney—known as the principal—in the event that the principal cannot make those decisions himself or herself.
A property in a project, which is in the planning stage and does not have all the approvals but is, soon expected to obtain all approvals. Generally, in order to raise public funds, many developers offer huge discounts or “early bird” specials in the pre-launch stage. However, investors should aware of the risks involved and approach such projects with caution.
An evaluation of a potential borrower by a bank to determine whether the borrower qualifies for a loan, or the maximum amount that the bank would be willing to lend. The process involves a thorough examination into the income and expenses of the borrower, including a verification of the borrower’s credit report and score.
A PLC is an additional cost that a homebuyer would pay for booking a housing unit, which has an advantage over others in terms of location. A preferred location within the apartment complex may mean an apartment that faces the park or is a corner plot near to the main road.
The amount borrowed or still to be repaid. The part of the monthly payment that reduces the balance of the loan.
A written promise to repay a specified amount over a specified period of time.
Property insurance provides protection against risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance.
The administration of residential, commercial and/or industrial real estate. The property manager acts on behalf of the owner to preserve the value of the property while generating income. Managed properties include residential and vacation properties, commercial retail space or industrial warehouse space. Property managers are typically paid a fee and/or a percentage of the rent brought in for the property while under management.
A property tax is a levy on property that the owner is required to pay. The tax is levied by the local municipal body of the state in which the property is located. All states have different tax structures and rates.