Introduction
Have you ever found yourself in the stands of a game, surrounded by rabid fans? Yet feel completely clueless because you don’t understand the rules or the drama unfolding in front of you? If so, you may empathize with the experience of many home buyers. But we have analyzed and presented to you some things that you should know and remember.
Table of Contents
- Real Estate Terms to Know
- Property Types and Characteristics
- Legal Terms and Contracts
- Home Inspection and Regulations
For experienced real estate agents, builders, or buyers, escrow language, amortization, and more can emerge effortlessly. However, for those buying their first home, the mention of unfamiliar real estate phrases can feel like being thrown into a game with unfamiliar rules.
Since buying a property is an endeavor, understanding these terms is key to making informed decisions and ensuring a smooth home buying process. In this guide, we explain 15 terms from the real estate dictionary that every first-time home buyer should know.
Real Estate Terms to Know
Buying a home can be a complex process, especially when it comes to understanding the various terms and requirements involved in real estate. Here are some key terms that every home buyer should know:
- Commencement Certificate (CC)
One of the many acronyms in real estate, CC, is an important approval for building construction. It verifies that the builder has obtained all official approvals and is authorized to start work.
- Occupancy Certificate (OC)
Another important document is the Occupation Certificate, or OC, which certifies that the property has been constructed as per the plans approved by the authorities. It is issued by the concerned local authorities. It assures the buyer that the property has all the necessities, like electricity, water supply, and sanitation.
- Cost sheet
A basic real estate term is a cost sheet that lists all the costs involved in buying an apartment, including a breakdown of apartment costs and payment schedule. Agreement value, stamp duty, additional charges, registration fees, and taxes are among the various factors.
- Cash Offer
Most first-time home buyers don’t know that these are the magic words to get any seller’s attention. And by July 2021, 30% of all home sales in the US were completed in cash. A cash offer means a potential buyer is less likely to fall behind on financing.
Willing to buy ASAP instead of dealing with contingencies, debt or other financing options. Knowing about cash offers can help them win their first home option. But others continue to jump through the necessary hoops to find the money.
- RERA (Real Estate Regular Authority)
The Real Estate (Regulation and Development) Act, passed by the Parliament of India in 2016, seeks to improve accountability, transparency, and efficiency in the real estate industry. At the same time, it also protects the interests of home buyers.
- Carpet Area
The term ‘carpet area’ refers to the actual living area measured from the interior walls of the apartment. It covers the part that can be carpeted. Expanded to cover balconies.
- Planning Area
An area earmarked for future development by the concerned government authority is called a planning area in terms of real estate. Agricultural, non-agricultural, railway land or planning zones Some common types of land that come under the planning area are divided into residential, commercial, and mixed-use.
- Agreement to sell
Also called a contract of sale, contract of sale, or contract of purchase. It is an agreement stating the developer’s intention to sell the property for money. The purpose of the agreement is to protect the interests of both the developer and the buyer.
Property Types and Characteristics
- Single-family homes
A single-family home is an independent residential building. Single-family homes do not have shared walls. Hence providing more privacy.
- Preferred Location Price (PLP)
When a home buyer books a unit with a location advantage over others, they have to pay an additional price called the preferred location price, or PLC. For example, apartments facing a park.
- Multi-family Properties
A multi-family property is a type of residence where multiple families can live together. Townhouses, apartment complexes, and other similar types of residential housing are examples of such properties. It is a popular choice among those who prefer to live close to other families and share the amenities and facilities of the property.
- Open Floor Plans
When it comes to home interiors, there are two types of plans. Open plan and closed plan. In an open floor plan, the living space is minimal or not separated from the other main rooms of the home.
- Amenities
Amenities in real estate terms refer to the various spaces within the property designed for recreation. Swimming Pool, Playground, clubhouse, etc. Some of the common amenities are found in a residential community.
Legal Terms and Contracts
- Purchase Agreement
During the home-buying process, buyers and sellers sign several contracts and agreements. The purchase agreement is the last of them, which documents the transfer of property from the seller to the buyer.
- Title Insurance
Title insurance unequivocally declares that the ownership of the property belongs to a single person and no one else has any claim on it. Before issuing title insurance, the concerned authority will ensure that the property has absolute title. Only then will insurance be done.
- Deed
A deed is a legal document in terms of real estate. It is used to transfer the ownership of the property from the seller to the buyer. The deed should contain the name of the property as well as the names and signatures of the buyer and seller.
Home Inspection and Regulations
- Home Inspection
This term refers to inspecting a house regarding its condition and safety. The buyer arranges a home inspection before final approval to ensure there is no damage to the property. In this way, there is an opportunity to protect the property.
- Comparables
In real estate terms, comparables or simply ‘comps’ refer to comparable properties in a particular area. This method is used to estimate the value of the property. Based on these expectations, the house is described.
- Immovable Property (Real Estate):
In terms of real estate, immovable property is an immovable property. For example, land, house etc. Although furniture and curios are considered possessions, they are easily moved from one place to another.
- Market Values
In real estate terms, market value refers to the property’s value at a particular point in time. Often, it increases over time. Gets more value. But market value decline is not completely impossible.
Conclusion
By understanding these key terms, you can confidently navigate the home-buying process and make the best decisions for you and your family. However, those who are buying their first home need to understand the above. For more information, visit openplot.