When you go house-hunting, the first thing that perplexes you are the jargons used in Real Estate world! You get stumbled upon what exactly is a BUA, FSI? To clear this confusion we have jotted down some most commonly used and needed real estate jargons.
Built Up Area (BUA): It is the total area of the flat including the space acquired by the inner and outer walls of the flat. It is 12-15% more than the carpet area.
Floor Space Index (FSI): It is nothing but the ratio of the total floor area of buildings on a certain location to the size of the land on that location.
Construction Linked Payment: This is a relatively new term in the field of property selling, where the buyer or the lender pays the builder as and when the various phases of the construction are completed.
Willing Seller Buyer: It is an assumption made by the property owner in order to find out whether there is any genuine purchaser in the market who is ready to buy at the assumed price. This assumption is done for valuation purposes.
ULCRA: It is a legislation that came into effect in 1976 as a social equity measure. Its purpose was to control profiteering and hoarding in the city’s land market and also to keep a check on urban congestion.
Refurbishment: Carrying out improvement and modernisation of a building which cannot be rebuilt or redeveloped. Hence, it doesn’t require a planning permission apart from the changes done in the external appearance. Listed buildings don’t count here.
Patwari: He is a person appointed by the local government or land authority who maintains and updates land ownership records for a given area. He’s the one responsible for the collection of land taxes for that given area.
Net Present Value Method (NPV): It is a technique used in discounted cash flow analysis to find the sum of money that’s the difference between present values of all inflows and outflows of cash associated with the project by deducting each at a target yield.
Frontage (Line): It is the total length of a plot of land or a building measure alongside the road onto which the building or the plot faces. In the case where buildings share a common border, individual frontages are measured to the middle of any party wall.
Anchor Tenants: It is an arrangement where major chain stores or supermarkets are placed at the key positions of the shopping centre. The thought process behind this arrangement is to lure more public into the shopping centre which in turn will encourage others retailers to lease shops in that shopping centre. The number of anchors will increase with the size of the commercial development.