If you are looking for investing in real estate for the first time, you might have come across a lot of terms that would’ve left you confused. It’s only natural; however, it ought not to remain the same. Jayraj Builders Vadodara simplify some commonly used real estate terms for you. Take a look:
- Credit score
Credit score refers to your capability to repay the loan (home loan or any other) you plan to take on the basis of your salary, financial strength, bank statements, and background check. A good credit score makes it easier to get the loan application approved.
- Real Estate Broker
Though often confused with one another, there exists a major difference between a broker and an agent, quip realty experts from Jayraj Builders Vadodara. While the latter is equipped with a real estate license that allows them to assist in property associated matters like buying and selling, it is the former that has qualified the state’s broker exam and has a certain number of successful deals as feathers to their hat.
- Lease Agreement
Lease Agreement is a legally binding contract between the landlord and tenant that specifies the details associated with the deal, such as the details of both parties, rent payable, monthly bifurcation, lease commencement and expiration date, security amount, etc. These terms are mutually agreed upon and signed by both the parties involved. Additional clauses can also be added as per discussion, suggests realty expert Jayesh Dave, founder and owner of Jayraj Builders Vadodara.
- Carpet Area
Although this term has grown out of use lately, it remains undeniably the most important factor to consider while buying a residential property. Carpet area refers to the area that can be used by the resident to set up their home. It excludes the area covered by balconies, lobby, outer walls, etc. Note that built-up area factors in the area occupied by the aforementioned. Jayesh Dave founder of Jayraj Builders suggest buying the property based on carpet area only.
- Super built up area
As the name suggests, super built up area includes the carpet area along with the extra areas like stairs, lobby, balconies, lifts, etc. In other words, all the area that is ‘saleable’. This is also one of the major reasons why most developers decide the final cost on the basis of cost per square feet, quip realty expert Jayesh Dave from Jayraj Builders.
Subletting is a clause that allows the tenant in a property to rent a part (say, a spare bedroom) to an outsider, or sub-tenant, and take the rent from them for that area, without the involvement of the property owner. However, if done without the knowledge of owner, this can lead to immediate action of vacating the property, suggests Jayraj Builders.
Any other real estate term you need to be explained? Let us know in the comments section!