REAL ESTATE GLOSSARY BY NIKHIL PATTANI | F TO J | REALTY DISCOVERED

 There is a lot of real estate terminology used during the home buying and selling process. With the motive to help you understand those terms, we are enlightening you all about the most commonly used real estate terms and their definitions..... 

F for

Foreclosure: A legal process that occurs when a property owner fails to uphold their mortgage agreement and make their payments. The mortgage lender will claim the property and resell it as an attempt to recoup their losses.

FSI Or Floor Space Index / FAR Or Floor Area Ratio

The maximum amount of construction allowed on a given plot of land. It is calculated as the ratio of a building's total area to the piece of land upon which it is built.

Fixed-rate mortgage: A home loan with an interest rate that stays the same throughout the loan’s lifetime.

Flex Space

A building providing its occupants the flexibility of utilizing the space. Usually flex space provides a configuration allowing a flexible amount of office or showroom space in combination with manufacturing, laboratory etc.

Flexi Payment Plan

Flexi-plan gives buyer the flexibility to pay the price of a property over a time period but the payments are time linked rather than construction linked.

Floor Plan

Pictorial representation that shows how an apartment would look after completion. It includes placement of rooms in the flat, their dimensions and super built-up area of the flat.

FHA loan: A mortgage loan that is backed and administered by the Federal Housing Administration.

Foreign Exchange Regulation Act (FERA)

It is an act to regulate the payments for foreign corporation to hold or transfer any kind of immovable property in India.

Freehold

A property which is free from the hold of any entity.

G for 

Gated Community

It is a modern residential community or housing estate having strictly controlled entrances for pedestrians and automobiles, and often characterized by a closed perimeter of walls.

Green Field Site

An underdeveloped area of land away from urban areas, which is now proposed for development.

Gross Building Area

The total floor area of the building starting from the outer surface of exterior walls and windows including all vertical penetrations (e.g. elevator etc.) and basement area

Guarantor

A person who agrees to indemnify the holder of a loan all or a portion of the unpaid principal balance in case of default by the borrower.

H for 

Home appraisal

The process during which a licensed appraiser evaluates different elements of a property to determine its fair market value. An appraisal is ordered by a mortgage lender.

Habitable

Residential properties that are suitable for occupancy. Local building codes ensure that structures are habitable through requirements for building permits and occupancy certificates.

Home inspection 

An examination of the overall condition of a property. It is ordered by a real estate buyer

Heir

The person who is the lawful inheritor of an estate or a property.

High Rise

In the Central Business District, it means a building higher than 25 stories above ground but in suburban areas, it generally refers to buildings 7 or 8 stories high.

Holding Deposit

An initial sum of money given to show interest in or confirm the sale of a real estate property before the full deposit is paid.

Home Improvement Loan

A loan made to a homeowner in which the home is used as collateral for the loan.

HVAC

Modern day technology systems installed in a building to regulate heating, air conditioning and ventilation.

I for

Interest

The profit a mortgage lender makes in exchange for the loan. It is quantified as a percentage.

Immovable Property

Includes land, buildings or any other entity attached to the earth or permanently fastened to anything which is attached to the earth.

Indenture

A deed including two or more parties, each party having their own copy.

Indian Stamp Act 1899

The act that regulates payment of stamp duty to the local government for real estate transactions.

Institutional Investors

These are organisations which pool money to invest in real estate properties and other investment assets

Inventory

The total amount of rentable square feet of existing and any forthcoming space (whether it be a tenant vacating space or new buildings coming on the market), in a given category, for example, all warehouse space in a specified submarket.

J for 

Judicial foreclosure

Judicial foreclosures are mandatory in some but not all states. They require all foreclosures go through the court system to confirm the debt is in default before putting the property up for auction. The goal of judicial foreclosures is to protect property owners from corrupt lenders.

Joint Agent

Here one /two or more agents are jointly instructed by a principal to act on his behalf. In the case of real estate agents this is normally on the basis that if any one of the agents effect the sale, letting or other joint agent(s) will share the remuneration in agreed proportions.

Joint Ownership Agreement

An agreement between owners holding the same property, defining their rights, ownership, monetary obligations and responsibilities.

Jumbo loan

Conforming loan limits cap the dollar value that can be backed by government-sponsored programs. A jumbo mortgage exceeds these conforming loan limits, which are tied to local median home values.

To be continued .. . .