REAL ESTATE GLOSSARY BY NIKHIL PATTANI | P TO T | 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..... 

P for 

Patwari

An individual appointed to maintain and update land ownership records as well as collection of land taxes

Possession Linked Plan

Payment under this plan is made in 2 – 4 phases. About 20 – 25 per cent of the payment is made at the time of booking, 30 – 35% is paid in the next installment after a fixed time period, another 30 – 35% after another fixed period and the remaining amount is paid after possession of the property.

Pre-Emi

A type of home loan repayment plan where the borrower is required to pay only the interest on the loan amount disbursed by the bank as per construction progress. Actual EMI starts after possession of the said property.

Precast Technology

New age construction technology where parts of a building like slabs etc are manufactured at an industrial unit and then assembled on site

Preferred Location Charges

These are additional costs that needs to be paid for the unit that has a certain location advantage over other units in the project.

Prelaunch

Property available for purchase before its official launch. It is generally cheaper and may or may not have the requisite approvals from government authorities.

Preleased

Refers to space in a proposed building that has been leased before the start of construction or in advance of the issuance of Occupancy Certificate.

Private Sale

The sale of a property by the owner without the services of a real estate agent.

Public Housing

Government-owned housing projects made available to low-income individuals or families at nominal rentals.

Pugree

A hindi term for the security deposit given to landlord before renting a property. It is refundable at the expiry of the lease term to the outgoing tenant.

Q for

Quitclaim deed

A quitclaim deed is a document transferring ownership of property from one party to another. It transfers the title of the property -- but only transfers what the seller actually owns.

Qualified Covenant

A legal document which restricts the rights of a person on the interest in a land/property

R for

Rate lock

A rate lock allows borrowers to lock in an advantageous interest rate before a real estate transaction closes. A rate lock allows the borrower to lock in that interest rate for a specific period of time protecting them from market fluctuations.

Real estate agent

A real estate agent is licensed to negotiate and coordinate the buying and selling of real estate transactions. Most real estate agents must work for a realtor or broker with additional training and certification.

Real estate owned

Real estate owned (REO) refers to property owned by a bank, government agency, or other lender. Homes typically become real estate owned after an unsuccessful foreclosure auction or short sale.

Right of way

The right of way is the total land area acquired for the construction of the roadway. Its width should be enough to accommodate all the elements of the roadway cross section, any future widening of the road and any public utility facilities that will be installed along the roadway.

Recreation Ground (RG) Plot 

A piece of public land used for sports and games.

Real Estate Settlement Procedures Act

The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide disclosures to borrowers informing them of real estate transactions, settlement services, and relevant consumer protection laws.

Its goal is to regulate settlement costs, prohibit specific practices such as kickbacks, and limits the use of escrow accounts.

Refinance

Refinancing replaces an existing loan with a new one. Debt is not eliminated when a borrower refinances. Instead, it typically offers better terms, including a lower interest rate, lower monthly mortgage payments, or a faster loan term.

Right of first refusal

If a third party buyer offers to buy or lease a property owner's asset, the right of first refusal ensures the property holder is allowed a chance to buy or lease the asset under the same terms offered by the third party before the property owner accepts the third-party offer.

Right of ingress or egress

The right of egress is a person’s legal right to exit a property. The right of ingress is the right to enter a property. It is generally used in rental or easement situations in which the tenant or person to which easement has been granted needs access to a shared driveway, a private road to the property, etc.

Right of survivorship

The right of survivorship is employed most often when there is joint ownership or tenancy of a property. It ensures that the surviving owner automatically receives the deceased owner’s share of the property becoming the sole owner of the property.

S for

Sale Deed

Sale deed is governed by the Registration Act and is the most important document for the purchase or sale of a property. No property buying or selling is complete without signing the sale deed by both the buyer and the seller in front of at least two witnesses.

Site Plan

A detailed plan which depicts the location of improvements on a parcel of land which also contains all the information required by the zoning ordinance.

Soft Launch

Another name for Prelaunch

Stamp Duty

Tax paid on legal document during the transfer of any asset or property.

Stilt Parking

A housing complex where the ground floor is reserved for parking.

Strata Title

A title to a unit or lot on a plan of subdivision associated with townhouses, units and blocks of flats and based on the horizontal and vertical subdivision of air space. Owners have a certificate of title, are absolute owners of a freehold flat .

T for 

Title

A home’s title represents the rights to the property. Those rights are transferred from the seller to the buyer during a real estate transaction and give the buyer legal rights to the property upon closing.

Transfer of ownership

In real estate, transfer of ownership refers to transfer of a property’s deed and title from the seller to the buyer at closing.

Transfer tax

Transfer tax is a transaction fee charged upon the transfer of a property’s title. It is imposed by the state, county, and municipal authority where the transaction is taking place and is based on the property’s value and classification.

Typically, the seller is responsible for paying real estate transfer tax, unless otherwise agreed upon during the transaction.

Treasury index

The treasury index is published by the Federal Reserve Board and based on the average yield of Treasury securities. Financial institutions often use this index as the basis for mortgage notes.

To be continued .. . .