Real Estate Terms All Home Buyers Should Know
The key to making an informed home buying decision is to be acquainted with the little details of the property you’re thinking of buying. And these details—that can make or break your investment decision—are often disguised in the real estate jargon.
Here are 5 essential real terms that all homebuyers should know:
1. Commencement certificate:
A commencement certificate is issued to the real estate developer by the local authorities to commence the construction of the property. If you are purchasing an under-construction or yet to be launched property, then it is imperative that you take a look at the commencement certificate before initiating the transaction.
An encumbrance certificate is a legal document that certifies that the land on which the property is constructed is free from any legal disputes or monetary liabilities. The registrar of assurances or sub-registrar issues the encumbrance certificate to the builder.
The term freehold property certifies that the owner has complete control over the land as well as on the construction of the property. The owner of a freehold property can transfer, sell, mortgage or lease the property without any restrictions. The ownership of a freehold property can be transferred through a registered sale deed.
The stamp duty is a form of property transaction tax to be paid by the buyer of the property. Stamp duty is applicable on agricultural and non-agricultural land, as well as on independent houses, residential flats and commercial units, and it typically amounts to 1-8% of the property price.
This term is especially relevant in the case of apartment complexes, and it is used to indicate all the land and amenities that are commonly accessible to all residents of the property. Swimming pool, sports facilities, lobby or entrance areas, parking facilities, etc. are listed under the common areas of the apartment complex.
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