Some Useful Terminology of Real Estate
We come across various terminologies in Real Estate, sometimes we use some terms improperly without knowing the actual meaning of a particular terminology. Here we will discuss some of the terms which we use very often.
Real Estate: This is the actual term we should use when talking about immovable property like land, house or flat. It can also be called as Realty.
Property: Some people use the term property for house or flats. Though it is not wrong, but property could be anything which someone possesses. It could be an intellectual copy-write also which can be called as intellectual property. It is better to use Real Estate instead of property.
Flat / Apartment: Both the terms are correct and both can be used. There is no difference between flat and apartment. British call it as apartment and an American call it as flat.
Plot or Land: There is confusion whether the vacant area on earth is called as land or plot. The whole area is called as land and plot is a portion of the land. To simplify, Plot is a part of the whole land.
Condominium: Condominium is mainly a unit in a large complex. In a simple way, a flat in a large complex where different areas are common.
House: House is a totally separated and built in a plot. There is nothing to share with others. A house can be many storied.
Villa: Villa is a small house built in a plot within a gated community. Villa should have at least one common wall. Villa can be called as Row House.
Bungalow: Bungalow is a low house concept. Bungalow has no common wall and it should not be more than one story. There will not be any floors above the ground floor. There is a misconception that a bungalow is kind of big house with open areas like garden.
Agreement: Agreement is prepared between two parties. In real estate the two parties are buyer and seller. Agreement is the document where the agreed terms, conditions and details are written with the concern of both parties. An agreement can be registered.
Deed: Deed is the document which is prepared in favor of the buyer. Deed is not an agreement. The details of the property are mentioned.
Rent or Lease: These two terms are also confusing. Is it rental agreement or lease agreement? There is a conception that rent is for short term and lease is for long term. The actual term is to be used is Lease. Because, lease is the term used for any immovable property. Rental can be anything else like TV or Car etc.
Receipt: Receipt is a document which is given to the buyer by the seller after seller receives any amount of money. It should be on white paper with revenue stamp. Receipt on court/stamp paper does not have any legal entity.
BSP: BSP stands for Basic Sale Price of the property. Mostly used in any developers flat at the time of booking of a new unit.
PLC: PLC stands for Preferential Location Charge. It is used where there are different types of units or flats in one complex. If there will be same rate for every flat, every buyer will fight for the same flat. To overcome this, PLC is been charged as extra for better side or location.
SBU or Loading: SBU stands for Super Built Up area. The total common area is divided among the number of unit of the complex and proportionately been added to the covered area of the flat. SBU can also be called as Loading.
What Real Estate Professionals are called as?
They are called as Broker, Agent, Dealer, Consultant and many other terms. What should be the actual term to be used? The definitions are given below for every term.
Agent – It is a protected terminology. Can be used as CBI agent, Government agent etc. So this term should not be used.
Broker – A broker takes all the money of a deal and gives it to the seller after deducting a portion. For example Share Brokers do this. Does a real estate professional do that? So Real Estate Broker is also a wrong terminology.
Dealer – It can be used as they are dealing with realty.
Advisor – This term can be used as they work as advisor and provide advisory service.
Mediator – This terminology can also be used as they are in the middle and mediating a deal.
Consultant – This is the best term to be used. They are doing the consultation and providing consulting services.
Terminology for the payout:
Remuneration – Remuneration can be paid in any other way but not in money.
Fees – Fees are taken only by the professionals like Doctors, Lawyers and CAs.
Brokerage – It is not brokerage as it can only be paid to a broker like Share broker.
Share – There is no share in the realty price. They do not possess any share of the property.
Compensation – Compensation can be paid only for damages.
Commission – This is the only term to be used and commission is the actual terminology.
We discussed some of the terminologies. There are lot of other terms which we will discuss in coming days. If you like this article and find useful, share with your friends and families.
Author: Arnab Ray
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