Are you going to make an investment in real estate? Well, good idea! The property market is full of opportunities, but investing in real estate is a big decision that must be taken very carefully. For instance, there are many local terms that are now being replaced by standardized real estate jargons. Having an understanding of these terms is something that can help you make informed decisions.

Real estate jargons to know before making an investment

So, before investing your hard-earned money, check out these commonly used terms.

Carpet area

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It's the net usable floor area or the area that can actually be covered by a carpet excluding the thickness of inner walls. This area excludes areas that come under service shafts as well as a balcony or verandah area.

Super buildup area

Lift shafts, corridors, stairs, lobby all the other areas besides the area occupied by individual flats, buildup area include all these common areas.

Super buildup area includes the buildup area including the fair share of the common areas that are equally divided among all the flats in a particular building.

Floor space index (FSI)

Also known as floor area ratio (FAR), this is the ratio of the total floor area of a building (Buildup area) to the total plot area (land), the amount of area you can build upon a plot. 

RERA act

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The Real Estate Regulation and Development Act (RERA) 2016 is the law applicable to the real estate sector. Effective from 1st May 2017, the law ensures transparency and accountability in the real estate sector. In addition to providing fast track grievance redressal, this act implements clear regulations so as to protect developers and homebuyers against default.

Occupancy certificate

Getting an occupancy certificate becomes important for a builder once a project is completed. This certificate signifies that the project has been completed according to the sanctioned plans, the building has provision for civic infrastructures such as water, sanitation, and electricity, and the building is suitable for habitation.

RERA registration number

A project, after its registration with the RERA authority in the state, gets a RERA registration number assigned to it. Once all the documents are submitted by the developer and are validated by RERA authority, this number is granted and signifies that the project complies with RERA.

Final words

Every industry has its own unique terms and jargons, and real estate is no exception. It is important that you know the most common and important ones (if not all) before you make any investment. Of course, you don't need to be a real estate professional when you are investing, but knowing these terms can help you in more than just a few ways.

Also read, Real estate investment: 5 common mistakes to avoid

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