All the real estate-related jargons that are popular and go around in the real estate market have special meanings that everybody involved in different processes use to converse better. As a home hunter, you may be new to all the terms used in the real estate sector, and that is okay. Because buying one of the residential projects in Thane or Mumbai might be a one-time thing for you. But it is always better to be in the know so that you can communicate with your real estate agent or builders and use terms that they are comfortable understanding. So we are here to introduce all the key terms from today’s real estate market so that you can look at various flats for sale in Thane without being clueless.
This refers to that part of any 2 or 1 BHK flats in Thane that can be actually used or the enclosed space within internal and external walls of the house that can be carpeted. The carpet area does not include the space used by walls, but it takes into account the area stretching across the private terrace and balcony as a part of the main or the actual area.
This term denotes the square inch of the house from the internal and external walls to the carpet area, including the terrace and balcony. In some regions, this is referred to as plinth area, which is usually around 10%-15% more than carpet area.
This comprises built-up area and common areas of residential properties in Thane like lifts, staircase, corridors, and lobby, which are divided proportionately between all the flats within the building.
A probate sale happens when a homeowner dies without writing a will or leaving property to someone. In such situations, the probate court would authorise an estate attorney, or another representative, to hire a real estate agent to sell the home.
Debt-to-income (DTI) ratio is determined by the total of your debt expenses, plus your monthly housing payment, divided by your gross monthly income and multiplied by 100. This helps lenders determine affordability based on their available loan programs and allows them to estimate how much you can afford to pay monthly for a mortgage.
A purchase and sale agreement is commonly referred to as a written contract between the buyer and seller, which outlines the terms of the parties to sell and purchase real property.
A loan contingency is a clause or addendum (also known as a mortgage contingency) in an offer contract that allows a buyer to back out of a deal and keep their deposit if they are unable to secure a mortgage with specified terms during a fixed period of time.
A pre-qualification is a lender’s (bank, moneylenders, mortgage providers, etc.) estimate of the amount a home buyer can expect to be approved for during the loan or mortgage process. Getting pre-qualified is a quick assessment by a lender of the buyer’s financial situation based solely on what a buyer tells a lender, and not based on any proof or verifications.
A buyer may take another loan to fill in their previous mortgage. This is called refinancing, and it is usually done to obtain lower interest rates on the new loan.
A seller’s disclosure is a disclosure by the seller of information about the property, or which could affect a buyer’s decision to purchase the property, all of which to the best of the seller’s knowledge. A seller also indicates items that are not specific to the property itself but related to a person’s enjoyment of the property.
This refers to the type of loan where your interest rates keep on changing during the entire tenure. Thus, you may get lower or higher interest rates from the initial ones based on the market. The interval at which this alteration takes place is predetermined.
It is exactly the opposite of the previous term. Here, you receive a constant rate of interest irrespective of what is going on in the market. So, even if the market falls down, you will still have to pay a higher interest amount towards the loan throughout its tenure.
Equity is ownership. In homeownership, equity refers to how much of your home you actually own, meaning how much of the principal you’ve paid off. The more equity you have, the more financial flexibility you have, as you can refinance against whatever equity you’ve built.
Freehold property is one whose title has been completely transferred to the buyer through a sale deed without any restrictions about their right to sell or transfer the said property to another person. The owner of a freehold property has unconditional ownership of the land and building mentioned in the document.
This is an essential document issued by the local municipal corporation to the owner of a 2 or 1 BHK in Thane, after ensuring that the building complies with all permissible construction plans and local laws.
So the next time you are looking at various flats on sale in Thane, you will be able to decode what your real estate agent and builders are talking about without being clueless. After decoding the basic jargon prevalent in the real estate industry, you can ask much more detailed questions to builders and have a clearer view of the size of the house being purchased.
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