Annual Schedule of Rates

The Annual Schedule of Rates, is the government’s estimates of minimum property values in various locations. It is the minimum price, on which the government will charge stamp duty and registration fees. It is also known as Circle Rates or Ready Reckoner Rates.

Balloon payment

An equated monthly instalment, which is at least double the amount of previous payments and is usually paid at the end of the repayment term, to clear the debt. Balloon payments are more common in commercial real estate than in residential realty.

Benami property

A ‘benami’ property is one, in which the property is purchased in the name of a person, who is not the real beneficiary. Such a person in whose name the property is purchased is referred to as a ‘benamidar’.

Brownfield project

A brownfield project is one, where the development work is based on prior work. It refers to a project, where an existing one is rebuilt, modified or upgraded.

Building code

A set of standard rules pertaining to construction in a particular area, with respect to design, materials and structure of a building. The regulatory authorities will require all buildings to conform to the code, in order to facilitate approvals and permissions.

Built-up area

The built-up area of a property refers to the carpet area, along with the thickness of the inner and outer walls and the balcony.

Bye-laws

The bye-laws (also called by-laws) refer to a set of rules established by a cooperative housing society and form the basis on which the society governs itself. The bye-laws that a society frames, have to conform to regulations provided by a higher authority. For example, in Maharashtra, a society’s bye-laws have to be consistent with the Maharashtra Co-operative Societies Act, 1960.

Capital gains

Capital gain refers to the profit that one earns through the sale of a capital asset, such as real estate, or even stocks or bonds. It is basically the difference between the selling price of the property and its purchase price. Depending on the period for which the property was held, the capital gain can be either a long-term capital gain or a short-term capital gain.

Carpet area

Carpet area refers to the space that is actually available for use, in a property. It is the area that is enclosed within the walls, or the area that is available to lay the carpet.

Commencement certificate

The certificate from the local municipal authority that permits the developer to begin construction of the project. The commencement certificate (or CC) is usually granted, only after the developer has met the legal requirements and obtained the relevant sanctions for the building’s plan.

Common areas

This includes the amenities and areas in the land/ building (such as swimming pool, gym, club house and other recreational facilities, as well as common corridors, staircase, lobby areas, parking areas, etc.), for which the maintenance expenses are shared by all the members of the housing society or home owners’ association.

Construction loan

People can avail of home loans to get their house constructed – either by themselves, or by employing a contractor to construct the house – on a plot that they own. Such loans are commonly termed as ‘construction loans’. The process of approval and disbursement of a construction loan, is different from that of a regular housing loan.