May 092011
Do you feel lost by built up area, super built up area, carpet area, stamp duty and so on? Here is a glossary of the 7 most frequently used terms in the Real Estate industry so that you do not feel handicap when buying property in India:
- Carpet Area: The actual area you can use. The area on which ‘you can put a carpet’ in entire house. It includes bedroom, kitchen, hall, bathrooms, balcony etc. It is fairly easy to calculate carpet area for any rectangle room – just measure width and length, and multiply the two numbers, For example, if your master bedroom is of length 15 feet and width 13 feet then carpet area of this room will be 195 square feet (15*13). If it’s not rectangle, divide the area in different rectangular parts and calculate carpet area of separate sections and then add them altogether.
- Built-Up Area: The area of the apartment that includes the area covered by the walls so it is net area of a flat including space covered by the wall. Sometimes balcony is considered in Built Up area not in carpet area. As a general rule, built up area is around 8% to 10% more than carpet area.
- Super Built Up Area: Super Built Up Area is most commonly known as sale-able area. It consists of Built up area + area for common spaces such as lifts and stairs etc. Most of the time builder deals on this area, so don’t assume that you will get same space within your house as it is described by your builder. Super built up area is unique money-making concept by builders in apartment complexes.
- Covered Area: In general, Covered Area is the actual area under the roof. It is not so widely used.
- Stamp Duty: Real Estate Stamp duty is a type of tax collected by the Government of India. Stamp duty establishes the agreement value or on the market value, whichever is greater.
- Sale Deed: Sale Deed provides the buyer the absolute and undisputed ownership of the property. With this document, the seller transfers his right of property to the buyer.
- Registration Charges: The fees associated with getting the legal title registered in your name. This legal process of registration takes place in the sub-registrar’s office in your local court.
For a more comprehensive list of definitions, the following sites can be useful:
http://www.ljhproperty.com/glossary.html
http://www.indianground.com/glossary/a.aspx