Buying and selling property is not something that most people do every day and the jargon can add layers of confusion to an already complex situation. It’s not hard to be bamboozled by the terms used by your Agent, Conveyancer, Broker and the like. So, to put your lingo-related misery to rest, here are some terms that could simply things for you.
Table of Contents
Appraisal
If you are applying for a home loan, your home will be assessed or evaluated by the bank so that they can be sure of the amount of money they are lending. The appraiser or the evaluator will determine the value of the home based on the property’s examination.
Home warranty
A home warranty is a service contract that covers the reparations of important appliances that break down over time. Industry experts at Modi Builders, among the top builders in Hyderabad, review that the warranty protects your home from future problems like plumbing and heating, which can be extremely expensive to fix.
Contingencies
Contingency is a condition or action that must be met for a real estate contract to be finalized. A contingency becomes a part of a binding contract when the buyer and seller agree upon the terms and sign the contract.
Equity
Equity is ownership. It is the difference between the market value of your home and the amount you owe the lender who holds the mortgage. The more equity you have, the more financial flexibility you have, as you can refinance against whatever equity you’ve built.
Floor Space Index
Floor Space Index or Floor area Ratio is the ratio of total floor area of a building to the total plot. “A higher FSI or FAR will have a higher built-up area,” says one of the realtors at Modi Builders.
Subletting
Sublease or subletting is the process of renting of property by a tenant to another person under the tenant’s existing lease contract. The third party pays the rent to the tenant instead of paying it to the actual owner. Subletting the property to a third party without the knowledge of the owner of the property is a criminal offense and the tenant will be arrested if found guilty.
Non-Disclosure Agreement
Non-disclosure agreement, as the name suggests, is a signed contract among two or more parties consisting of confidential materials or valuable information which is only to be shared between the parties involved for business purposes.
Freehold Property
A Freehold property is a property that is ‘free-from-hold’ of any other party than the owner. Where the owner has the complete and can use the land for any purposes, however in accordance with the local regulations.
Conveyance
The process of transferring the property rights, interests, title and ownership from the seller to the buyer. It is a binding contract that is legitimate in a court of law, explain experts at Modi Builders. The purchase of a property is incomplete without a valid conveyance deed.
License Agreement
License agreement is referred as the written agreement contract between two parties, in which the owner of the property gives permission to another person to use the property or involve any activity under a specific set of parameters.
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