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Home > Glossary Of Real Estate Terms

Glossary Of Real Estate Terms

ACRE
A measure of land equaling 43,560 square feet; or 4,840 square yards; or 160 square rods; or a tract about 208.71 feet square.

ALLOTEE
The person who is allotted a property, either by government body/authority or by a developer.

ABANDONMENT
The voluntary surrender of Property rights, with no intention of reclaiming them and without vesting interest in another person.

ACCELERATION CLAUSE
A clause in agreement of sale, which gives the lender the right to call all sums due and payable in advance of the fixed payment date upon the occurrence of a specified event, such as a sale, default, assignment or further encumbrance of the property.

For example, the contract was for A to purchase a piece of land from B for Rs 20,00,000, to be paid in 5 monthly installments. If A makes the first two payments, but fails to make the third payment, an acceleration clause would require that A must immediately pay B the entire balance, or lose his right to purchase (without getting a refund of his 8,00,000).

ACCEPTANCE
The expression of the intention of the person receiving an offer (offeree, usually the seller) to be bound by the terms of the offer. The acceptance must be communicated to the offeror and must be in writing to be enforceable.

ACKNOWLEDGMENT
A formal declaration made before an authorized official by a person executing a document, that he signs the document by a free act and deed. The official is usually a notary public who witnesses the signature and verifies the identity of the person.

ACQUISITION
The act of becoming the owner of certain property; used also of the thing or property acquired.

ADMINISTRATOR
A person appointed by the court to manage and settle the estate of a deceased person who has left no will.

AFFIDAVIT
A written declaration, sworn before an officer who has authority to administer oaths.

AGREEMENT OF SALE
A written agreement whereby the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms and conditions set forth in the agreement.

AIR RIGHTS
The rights vested by a grant of an estate in real property to build upon, occupy, or use, in the manner and degree permitted, all or any portion of space above the ground or any other stated elevation within vertical planes, the basis of which corresponds with the boundaries of the real estate described in the grant.

ALIENATION
The voluntary transfer of real property from one person to another.

BUILT-UP AREA
Built-up area: Built-up area, over and above the carpet area, would include the space covered by the thickness of the inner and outer walls of the flat.

BENEFICIARY
A beneficiary in the broadest sense is a person or other legal entity who receives Property, money or other benefits from a benefactor.

BREACH OF CONTRACT
Violation of any of the terms or conditions of a contract without legal excuse.

CARPET AREA
The actual usable area of an apartment/office unit/showroom etc. minus Wall thickness. It is that area within the walls where you can actually lay a carpet.

CENTRAL BUSINESS DISTRICT
Commercial area and its immediate radius of 2 - 3 kms, typically located towards the city center, which forms the hub of all major commercial activity in a city.

CLEAR TITLE
A title that is free from claims or legal questions and all other encumbrances about the ownership of the property.

COMMERCIAL PROPERTY
A building / property which is used for the purposes of carrying out commercial activity or trading.

COMMON AREAS
Those portions of a building or land that are used by all of the unit owners. Who share in the common expenses of their operation and maintenance.

CONDOMINIUM
A Real Estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas. Each individual owner may sell or encumber his/her own unit.

CO-OWNERSHIP
When there is more than one owner for an immovable property, the status of the property is known to be of the Co-ownership type. A Co-owner can do whatever he wishes with his part of the property as long as he does not affect the share of the other Co-owners.

CONVEYANCE DEED
A legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it.

COVENANT
A written agreement in a deed, which pledges that either party will perform or abstain from specified, acts on a certain property, or which specifies or forbids certain uses of the property.

DAMAGES
Compensation or indemnity recovered through the courts by any person who has suffered loss, detriment or injury to person, property or rights. A sum of money awarded to a person injured by an act of another. May be compensatory or punitive.

DEED
A legal instrument in writing, duly executed, sealed, and delivered, whereby the owner of real property conveys to another (grantee) some right, title, or interest in real estate.

DUE DILIGENCE
Verification of the authenticity of the title of the property

EARNEST MONEY
The cash deposit made by a purchaser of real estate as evidence of good faith.

ENCROACHMENT
Trespass, the building of a structure or any improvements partly or wholly intruding upon the property of another.

ENCUMBRANCE
Any claim, lien, charge or liability attached to and bindings upon real property, which may lessen the value of the property but will not necessarily, prevent transfer of title. There are two general classifications of encumbrances: (1) those that affect the title, such as judgments, mortgages, mechanic's liens and other liens which are charges on property used to secure a debt or obligation; and (2) those that affect the physical condition of the property such as restrictions, encroachments, and easements.

ESCROW
In real estate, it is the state or condition of a deed, which is conditionally held by a third party, called the escrow agent, pending the performance or fulfillment of some act or condition.

ESCROW AGREEMENT
A written agreement between two or more parties whereby the grantor, promisor or obligor, delivers certain instruments or property into the hands of a third party, the escrow agent, to be held by said third party until the happening of a contingency or performance of a condition, and then to be delivered to the grantee, promisee, or obligee.

EXECUTOR
An individual or institution designated in a will and appointed by a court to settle the estate of the testator.

FAIR MARKET VALUE
Legal term synonymous with MARKET VALUE.

FREEHOLD PROPERTY
An owner's interest in land where the property and the land on which it stands both belongs to their owner indefinitely.

FSI OR FLOOR SPACE INDEX
The maximum amount of construction allowed on a given plot of land.

HEIR
A person who is entitled by law or by the terms of a will to inherit the estate of another.

HECTARE
A metric surface measure: 10,000 square meters or 2.471 acres.

INDEMNIFY
To protect against future loss, damage, or liability.

INDUSTRIAL PROPERTY
Any property used for a manufacturing purpose. A specified area where industrial activity may be carried out.

JOINT OWNERSHIP AGREEMENT
An agreement between owners defining their rights, ownership, monetary obligations and responsibilities.

JURISDICTION
The authority to legislate within a geographically defined area; authority to enact general municipal legislation over that particular area.

LANDLORD
One who rents property to others.

LEASE
A written document by which the owner transfers the rights of use and occupancy of land and/or structures to another person or entity for a specified period of time in return for a specified rental.

LEASEHOLD
The interest or estate, which a lessee has in real property by virtue of his lease.

LESSEE
A person/entity to whom property is rented under terms of a lease.

LESSOR
A person who rents property under a lease; the landlord.

LIABILITY
Debt, or obligation. An obligation or duty that must be performed. The opposite of asset.

LIEN
A hold or claim which one person has upon the property of another as a security for some debt or charge.

LOCK-IN
A specified period mentioned in the lease for which Lessee must hold the place or pay the rent.

MARKET VALUE
The price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure.

METER
A measuring unit, 1 meter is equal to three feet and three inch.

MAINTENANCE CHARGES
Charges payable by the owners / occupants of a development (apartment complex / commercial complex / plotted development etc) towards upkeep & maintenance of all common areas and facilities.

MORTGAGE
A legal document that pledges a property to the lender as security for payment of the loan.

MUTATION
Mutation means transfer/change of name in the records of the Corporation for the concerned property.

NO OBJECTION CERTIFICATE OR NOC
A certificate issued by the concerned local authority that the plans are in order and conform to the guidelines and rules in force. In other words, the authority concerned has NO OBJECTION to the commencement of construction.

NEGOTIABLE
A promissory note, or similar instrument, is said to be negotiable if title to the instrument, and the money it represents, can be transferred by mere endorsement and delivery by the holder, or by delivery only.

OCCUPANCY CERTIFICATE OR OC
A certificate issued by the local development authority certifying that all necessary works have been completed as per the sanctioned plans and that the property is fit for occupation. The OC is issued after clearance from the water, electricity, sewerage, fire fighting authorities etc.

OWNER
Any person who has a valid and legal right, title and interest in the property.

OBLIGATION
Legal reservation of funds based on known requirements (a contract, for example), or a realistic estimate of costs.

OBLIGOR
One who places himself under a legal obligation to an obligee.

PLOT
A piece of land.

POWER OF ATTORNEY
An instrument authorizing someone to act as another person's agent or attorney. The agent is attorney in fact, and his power is revoked at the death of the principal by operation of law. Power of attorney may be general or special.

RESIDENTIAL PROPERTY
Any property, which is used for residential purposes. These areas are specifically earmarked as such by the concerned local authority.

REALTY
A term sometimes used as a collective noun for real property or real estate.

SUBLETTING
A leasing by one tenant to another, who holds the right of use and occupancy subject to the original lease; the sub lessee.

SUBORDINATION CLAUSE
A clause in a mortgage or lease stating that rights of the holder shall be secondary or subordinate to a subsequent encumbrance.

SUBROGATION
Replacing one person with another in regard to a legal right, interest, or obligation. Substitution, such as a mortgage holder's selling his rights and interest to another.

SECURITY
In lending, security refers to the collateral given, deposited or pledged to secure the payment of the loan.

SUPER BUILT UP AREA
is said to include the proportionate common areas on the floor, such as the passage, staircase, and so on. This would usually be around 25-35 per cent of the carpet area. However, there is a tendency of loading even the common areas of the building/project such as the garden, open area, clubhouse and other recreational facilities.

TITLE
A document stating that the particular property belongs to the following person.

TENANT
One who holds or possesses land or tenements by any kind of title, either in fee, for 'life, for years, or at will.

TERM
The extent of time for which an estate is granted. For example, the period which is granted for the lessee to occupy the premises; it does not include the time between making the lease and the tenant's entry.

VALUATION
The act or process of estimating value; the amount of estimated value.

VENDEE
A purchaser; a buyer; the person to whom a thing is rendered or sold.

VENDOR
The person who transfers Property by sale.

VOID
That which is unenforceable; having no force or effect.

MEASUREMENT UNITS
Land Measurement Unit used commonly worldwide

LENGTH

AREA

Millimeter

One-thousandth of a meter

1 sq ft

144 inch
3 feet x 3 feet = 9 feet

Centimeter

10 millimeter

1 sq yard

9 ft

Inch

50 millimeter
5 centimeter

1 acre

43560 sq ft
4840 sq yd
4040 Sq mt

Feet

300 millimeter
30 centimeter
12 inch

1 hectare

11954 sq ft
10000 sq mt
2.4711 acre

Meter

195 cm
39 inch
3 feet and 3 inch
10.76 sq ft.

640 acre

1 sq mile

1 km

1000 meter

 

 

1 mile

5280 feet

 

 

Agricultural Units of Measurements Used in India

1 Pucca Bigha

= 1 sq. Jareeb
= 3 Kaccha Bigha
= 20 Bissa
= 3025 Sq. Yard
= 2529 Sq. Meters
= 27225 Sq. Feet

1 Acre

= 4840 Sq. Yard
= 4046.8 Sq.Meters
= 43560 Sq. Feet
= 0.4047 Hectare
=20 kanal

1 Hectare

= 2.4711 Acre
= 10000 Sq meters

1 Kaccha Bigha

= 6 2/3 Bissa
= 1008 Sq.Yard and 3 Sq Feet
= 843 Sq. Meters

1 Bissa

=20 Biswansi
= 20 Sq.Gattha

1 Gaz/yard

= 1 Yard
= 0.91 Meters
= 36 Inch

1 Hath

=½ Gaz
= 18 Inch

1Gattha

= 5 ½ Hath
= 2.75 Gaz
= 99 Inch

1 Jareeb

= 55 Gaz/yard

1 kanal

= 500 sq mt
= 5380 sq ft
= 597 sq yd



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