Q. What do you mean by Builder / developer ?
- Real Estate Developer. who develops a projects related to real estate, both commercial or residential.
Q. What do you understand term Deed ?
- A legal document that grants the bearer a right or privilege provided that he or she meets a number of conditions. In order to receive the privilege – usually ownership, the bearer must be able to do so without causing others undue hardship. A person who poses a risk to society as a result of holding a deed may be restricted in his or her ability to use the property. Deeds are most known for being used to transfer the ownership of automobiles or land between two parties.
Q. What is Construction Linked Plan ?
- The payment plan where the buyer needs to pay the money for buying the apartment, villa, floor etc. in installments based on the construction progress. The buyer will pay the amount for the under constructed property as and when the payment I due or construction stage is completed.
Q. What is PLC (Preferential Location Charges) ?
- PLC is an amount over and above the property cost which developer / builder charges from the buyer as an add on based on the location of the property offered such as park view, corner view, wide road, etc.
Q. What is BHK ?
- Bedroom, Hall & Kitchen
Q. What is Built -Up Area?
- Carpet area + area of walls and ducts. A terrace is considered as half the actual area for calculating built up area. Some projects charge dry terrace same as internal rooms.
Q. What is Condominium?
- A large property complex that is divided into individual units and sold. Ownership usually includes a non-exclusive interest in certain “common properties” controlled by the condominium management.
Q. What is Construction Mortgage?
- A loan borrowed to finance the construction of a home and typically only interest is paid during the construction period. Once the construction is over, the loan amount becomes due and it becomes a normal mortgage. The money is advanced incrementally during construction, as construction progresses.
Q. What is Down Payment Plan?
- When the buyer makes complete payment against the property, commercial or residential, within or before the possession of the property. The buyer gets a special discount on the property price by paying the money in advance to the seller for the property which is under construction or is under development.
Q. What is Fair Market Value?
- The price that a given property or asset would fetch in the marketplace, subject to the following conditions:
- Prospective buyers and sellers are reasonably knowledgeable about the asset; they are behaving in their own best interests and are free of undue pressure to trade.
- A reasonable time period is given for the transaction to be completed. Given these conditions, an asset’s fair market value should represent an accurate valuation or assessment of its worth.
Q. What is Floor Area Ratio - FAR?
- The total square feet of a building divided by the total square feet of the lot the building is located on. FAR is used by local governments in zoning codes. Higher FARs tend to indicate more urban (dense) construction.
Q. What is Land Lease Option?
- An option within a lease contract that grants the lessee the right to extend the period of the lease beyond the original length of time. Usually, the lessee is required to pay a premium for the option, such as a small amount of money in each year of the original lease
Q. What is Layout Plan ?
- Layout Plan shows the complete layout planning of the complete project which covers the cluster plan & floor plan and other common areas within the site.
Q. What is Loan-To-Cost Ratio - LTC?
- A ratio used in commercial real estate construction to compare the amount of the loan used to finance a project to the cost to build the project. If the project cost $1 million to complete and the borrower was asking for $800,000, the loan-to-cost (LTC) ratio would be 80%. The costs included in the $1 million cost figure would be land, construction materials, construction labor, professional fees, permits and so on.
Q. What is Locked-In Interest Rate?
- Referring to a loan where the borrower and lender agree on a constant rate for a specified period. The lending institution promises to charge this locked in rate as a legal commitment. Sometimes there are certain qualifications or exceptions which, if not met over the life of the loan, will allow the lender to charge a higher rate. Also known as a fixed rate.
Q. What is Market Value of Property ?
- The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.
Q. What is Mortgage Rate?
- The rate of interest charged on a mortgage. Mortgage rates are determined by the lender in most cases, and can be either fixed (stay the same for the term of the mortgage) or variable (fluctuate with a benchmark interest rate). Mortgage rates rise and fall with interest rates and can drastically affect the homebuyers’ market.
Q. What is Occupancy Rate?
- In real estate, the number of units in a building that have been rented out as compared to the total number of units in the building. An apartment building containing 20 units, 18 of which had renters, would have a 90% occupancy rate. A 200-room hotel with 150 rooms occupied would have a 75% occupancy rate. Conversely, the vacancy rate is the number of units in a building that are not rented out as compared to the total number of units in the building.
Q. What is Pro-rata property taxes?
- Paid by the seller, the buyer, or both. Most (but not all) jurisdictions assess taxes on real property, which are usually payable at a specified date annually. Since all but a tiny fraction of real estate transactions close on a date other than this one specified annual date, most transactions must include an adjustment to assure that both the seller and the buyer end up paying their share of the annual property tax, proportionate to the percentage of the year that each has ownership of the property. Usually required by institutional/commercial lenders and by the real estate contract.
Q. What is Security Deposit?
- A monetary deposit given to a lender, seller or landlord as proof of intent. Security deposits can be either refundable or nonrefundable, depending on the terms of the transaction. As the name implies, the deposit is intended as a measure of security for the recipient.
Q. What is Studio Apartment?
- These kinds of apartments typically consist of one large room which serves as the living, dining, and bedroom. Kitchen facilities may either be located in the central room, or in a small separate room, and the bathroom is usually in its own smaller room.
Q. What is Transfer of Mortgage?
- A transaction where either the borrower or lender assigns an existing mortgage (bank loan to purchase a residential property) from the current holder to another person or entity. Homeowners who are unable to keep current on their mortgage payments may seek a transfer so that they don’t default and go into foreclosure. Not all mortgages are eligible for transfer. In order to transfer a mortgage, the lender will need to verify that the person or entity that will assume the mortgage has adequate income and credit history to be able to make payments in a timely manner.