“You must refer to a real estate broker, not an agent, to discuss the contingencies before escrow is finalized for the unit.” Confused? If you are a potential home buyer and are planning to survey the market, you should be aware of the typical real estate terms in order to understand the projects, units, and deals stated by the agent.
Here is the list of the most frequent real estate terms :-
Real Estate Broker
First and foremost, there is a major difference between a broker and an agent. The former has qualified the state’s broker exam and has had a certain number of successful deals while latter is equipped with a real estate license that allows them to assist in property associated matters like buying and selling.
Though you will hear this term less nowadays, it is arguably the most important factor to consider while buying a residential unit. Carpet Area represents the area that can be used by the resident to set up their home. It doesn’t include the area covered by balconies, outer walls, lobby, etc. Remember, built-up area factors in area occupied by the aforementioned. So, buy the property based on carpet area only.
Super built up areaok
This includes the Carpet Area added with the extra areas like stairs, lobby, balconies, lifts, etc. Basically, all the area that is “Saleable”. This is also one of the major reasons why builders decide the final cost on the basis of cost per square feet.
It is legally binding contract between the landlord and tenant that specifies the details associated with the deal. This includes the details of both parties, rent payable, monthly bifurcation, lease commencement and expiration date, security amount, etc. These terms are mutually agreed on and signed by both the involved people. Additional clauses can be added as per discussion.
Subletting allows the tenant in a property to rent a part (say a spare bedroom) to an outsider, or sub-tenant, and take the rent from him/her for that area directly, without involving the property owner. However, if done without the knowledge of owner, this can lead to immediate action of vacating the property.
This represents your capability to repay the loan you are planning to take on the basis of your salary, bank statements, financial strength, and background check. A good credit score makes it easier to process the loan application.
Any other term you’d like to know about? Let us know in the comments below and we’ll simplify it!