Real Estate Glossary including Amenities, Carpet Area, Credit Score, Construction Budget, Built-up Area, Buy-out rate, Deed etc.

  • Amenities: Amenities include access to community parks, swimming pools, play area, club house, indoor games, jogger’s track, yoga rooms, fitness centers and more, and can be quite varied depending on the community and the area. Amenities can be included at no additional charge or there could be a monthly or annual fee as part of the community. Also, the homeowner must belong to the association.

Carpet Area: Carpet Area is the area enclosed within the inside walls of your home you purchased. This area does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom etc.

Credit Score: This is the statistically derived score of a person’s credit worthiness/worth, used by money lenders/banks to know the likelihood of the person repaying his/her debts and is usually based on the person’s past credit history and current salary/income.

Construction Budget: Amount of money that the owner arranges for building his home that must cover every aspect of construction – from the foundation to the roof. This budget must be set before floor plans can be chosen or building begins as it may determine what the owner can afford.

Built-up Area: Includes the carpet area, wall thickness, balcony area until the inside walls.

Buy-out rate: In an agreement of funding between a developer and a prospective purchaser, the pre-determined investment yield which will be used to capitalize the annual income receivable at the time of sale to determine the buy-out price.

Capitalization Rate: Refers to the rate of return on any property investment depending on a future income that a property can generate.

Deed: A deed for your property establishes that a person is the legal owner of that property. When the person/owner sells his building/property, the deed to that building/property will then be transferred to the new owner.

Escalation Clause: Refers to a clause sometimes specified in lease agreements.

Floor Space Index (FSI)/Floor Area Ratio (FAR): Ratio of total built-up area to the total area of the plot. A higher FSI will have a higher built-up area.

Encroachment: Refers to a fence, building, or other structures that extends into the property of another owner. Additionally, some communities enforce building setbacks on any construction within their jurisdiction. A setback requires a certain distance of clearance between the property line and any structure.

False Ceiling: False Ceiling is synonymous to Suspended Ceiling which refers to ceiling which is not actually part of the main structure but is built later to provide aesthetic appeal to the usual boring looking ceilings.


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