Real estate is one of the crucial sectors to make an investment which offers high profitable returns. But we must be aware of some of the real estate terms before investing. Understanding these terms helps you make an informed decision.

Here are the 10 Real Estate Terms You Must Know Before Investing:

1. Legal Approvals:

It is a crucial step while buying a property. The approvals from the necessary authorities verifies the project is safe to proceed. It safeguards the buyer while reselling the property.

It is important to verify the RERA (Real Estate Regulatory Authority) approval of the project in the Indian real estate market. The RERA-approved projects follow the guidelines and regulations of the government.

2. Closing:

Closing is the last step while buying the property. It is when the property is completed, and the buyer makes all the payments. The seller officially hands over the property ownership to the buyers.

3. Appreciation:

Appreciation is the significant increase in the property price over a period of time. Appreciation of property rate depends on the project location, connectivity, accessibility, and demand.

4. Super build-up area:

The super build-up area is the total area of the house measured in square feet. Understanding this gives an idea to the buyer about their home space and accurate pricing ensuring transparency.

5. Carpet area:

The carpet area is the total usable area except for the balcony, Common areas and Wall thickness. It is usually 25-30 % less than the super build-up area measured area between the walls. According to the RERA Act price of the property should be based on the carpet area, not on the super build-up area. This real estate investment knowledge is important.

6. Payment schedules:

Payment schedules include the instalment structure. Understanding payment structure is important to manage your finances to make timely payments.

7. Cost sheet:

The cost sheet comprises the breakdown of all the expenses associated with the property development. This document includes the basic price, taxes, development and maintenance charges and other additional charges etc. This helps buyers to verify and make an informed decision.

8. Builder Reputation:

Builder reputation also plays a huge role when buying the property. The top builders develop projects of high-quality, focusing on sustainability. The property investors prioritize reputed builders. The price of the property also depends on the builder’s reputation.

9. Title:

The title confirms the official ownership of the property, which is transferred to the buyer during the closing procedure.

10. Loan Process:

The loan process enables one to purchase a property by breaking down the payment into monthly instalments. It is essential to ensure that reputable banks approve the project you're investing in. It makes it easier for you to secure a home loan to simplify your financing process. Knowing these real estate terms and conditions in India helps investment beginners to make the proper decisions.

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