Glossary

Current Exchange Rate:

1 Lakh  INR = 2,162.71 US Dollars

1 Crore INR = 216,271.00 US Dollars

*Changed daily at 9 am EST.

Real Estate Glossary

Indian Real Estate is investment option that has rapidly captured the imagination of people all over the world. Buying property is an integral part of financial planning for any family. This list has been created to help decode real estate and make it accessible to anyone.

BHK: Bedroom, Hall, Kitchen

BR: Bedroom

BSP: Basic sales price

Built-up area: Built-up area denotes to the entire area of the floor including carpet area, walls, lobbies and corridors, atrium areas and basement. Always, check with your builder/agent on what concept they are using.

Carpet area: The actual usable area within the walls of the floor is Carpet area.

Down Payment/Margin Money: Financiers normally give loans up to 80-85% of the value of the property. The balance would have to be paid by the buyer, as a payment before he draws on the loan amount. This balance amount is the down payment or margin money.

EDC: External Development Charges

EMI: Equated Monthly Installment. The loan can be repaid through EMIs over the tenure of the loan.

Fixed Rate of Interest: When an applicant opts for a fixed rate of interest, the rate of interest remains fixed over the tenure of the loan. This is an ideal option for situations when one expects the rates of interest to go up in the future.

Floor Space Index (FSI): Floor Space Index is the quotient of the ratio of the combined gross floor area of all floors excepting areas specifically exempted under these regulations to the total area of the plot.

IDC: Infrastructure Development Charges

Maintenance charges: These are charges taken by the maintenance society towards the maintenance of the property which includes costs of generator sets, security, landscaping, and common areas.

Market value: Valuation process evaluates the market value of the property. Demand and supply forces in the market and factors like type of property, quality and construction, its location, infrastructure and available maintenance are taken into consideration. Market value of the property is the price that the property commands in the open market.

Sale deed: Sale deed provides the buyer the absolute and undisputed ownership of the property. With this law, the seller transfers his right of property to the buyer. Subsequently, it is executed to the execution of the sale agreement and after compliance of various terms and conditions detailed in the agreement.

Registration charges: The fees associated with getting the legal title registered in your name. This legal process takes place in the sub-registrar’s office in your local court.

Common Area Maintenance (CAM): Common areas include hallways, pathways and utilities. CAM fees are accumulation by the landlords from the tenants to cover maintenance, property taxes and insurance in the case of Triple Net Lease.

Cap rate: Cap rate denotes to the capitalization rate. Capitalization rate is the restitution on investment on the property. The Capitalization rate is measured by the formula: Purchase Price / Net Operating Income from the Property.

Cash on cash: The yearly percentage return of your down payment not including appreciation. It is the first year’s cash flow divided by your initial down payment.

CPI: The Consumer Price Index is used to account the yearly rental increase so as to pay for inflation.

Full service lease: A Lease where the tenant pays rent to cover everything including utilities.

Gross lease: A Lease where the tenant only pays the rent and the landlord pays the taxes, insurance and maintenance.

Gross Leasable Area (GLA): The Gross Leasable Area or the total rentable area is the area which can be rented out for rental income. Itn’t include space for elevators, utilities room etc. does

Letter of Intent (LOI): The Letter Of Intent is a non-binding offer letter to buy a commercial place.

Mixed use: It is commercial properties with retail on the first floor and apartments on upper floors. Mixed use is the use of commercial and residential simultaneously.

Net Operating Income (NOI): Net Operating Income is the annual income after deduction of expenses like property tax, insurance, and maintenance but mortgage payments are exceptional.

Percentage lease: Percentage Lease is a lease where the tenant has to pay base rent plus a percentage of the tenant’s revenue.

PLC: Preferential Location Charges

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