29/10/2024

  D3. Value of the Property 142. Fair Market Value (FMV) 143. Appreciation 144. Depreciation 145. Real Estate Appraisal 146. Assessed Value 147. Capitalization Rate (Cap Rate) 148. Capital Gain 149. Capital Loss 150. Economic Obsolescence 151. Liquidity 152. Net Operating Income (NOI) 153. Replacement Cost 154. Title Insurance 142. Fair Market Value (FMV) Fair market value is the reasonable selling price of the property in an open and competitive market, where the seller and buyer have a good amount of knowledge about it. This is the price that a buyer would likely pay for the property and the seller would make the trade without any pressure. 143. Appreciation The increase in the value of a property over a period of time depending on various factors like market demand and supply, location improvements, area development, or interest rates. Currently the average annual property appreciation rate in India in 6%, which differs significantly from city to city. 144. Depreciation The annu...

  D2. Home Loans & Mortgage 115. Mortgage 115a. Adjustable-Rate Mortgage (ARM) 115b. Fixed-Rate Mortgage 115c. Capped Rate 116. Home Loan 117. Principal Amount 118. Down Payment 119. Interest Rate 119a. Base Rate 119b. Floating Interest Rate 119c. Fixed Interest Rate 119d. Hybrid Loans or Combination Interest Rates 120. Home Loan Eligibility 121. Home Loan Insurance 122. Equated Monthly Instalment (EMI) 123. Pre-EMI 124. Co-Borrower 125. Guarantor 126. Collateral 127. Refinancing 128. Loan to Value Ratio (LTV) 129. Loan Processing Fee 130. Equity 131. As-is where-is basis 132. Amortisation 133. Bridge Loan 134. Debt-to-income ratio 135. CIBIL 136. Credit History 137. Cash Reserves 138. Foreclosure 139. Pre-Approval Letter 140. Debt Service 141. Debt Service Coverage Ratio (DSCR) 115. Mortgage A legal agreement where a bank or other lender loans money at interest in exchange for taking the title of the debtor's property, with the condition that the conveyance becomes void upon t...

  D. Financial Terms in Real Estate D1. Property Taxes & Fees 103. Property Tax 104. House Tax 105. Stamp Duty 106. Property Registration Charges 107. Land Conversion Fee 108. Goods and Services Tax (GST) in Real Estate 109. TDS on Property Sale 110. Capital Gains Tax 111. Appraisal Fee 112. Annuity 113. Maintenance Fee 114. Brokerage Fees 103. Property Tax Property tax  is a recurring tax paid by property owners to the local government or municipality. The amount is usually based on the value of the property and location. It funds public services like roads and schools. Payment is typically required annually. 104. House Tax House Tax is a type of property tax specific to residential buildings. This tax is levied by the local municipal bodies and is based on the value, size, and location of the house. The funds collected through this tax are used for the maintenance and development of local infrastructure and services within the municipality. Regular payment is often requi...

C2. Real Estate Terms Related to Renting and Leasing Terms 82. Lessor 83. Lessee 84. Lease 85. Lease/Rent Agreement 86. Leave and Licence Agreement 87. Lease Term 89. Month-to-Month Lease 90. Lease Renewal Option 91. Notice Period 92. Rent 93. Fair Market Rent 94. Security Deposit 95. Maintenance Charges 96. Rent Agreement Renewal 97. Tenant Verification 98. Vacate Notice 99. Eviction 100. Sublease (or Subletting) 101. Rental Yield 102. Rent Control 82. Lessor Lessor is the person (landlord) who leases out a property to a tenant or buyer (‘lessee’) of the property under a ‘Lease agreement’. Lessors define the rights and obligations of both parties in the lease agreement, and spell out the ways in which the tenant/lessee can or cannot use the property, including special privileges like early termination, renewal of the lease, etc. 83. Lessee Lessee is the person (tenant or buyer) who holds the lease of a property and has the right to use it for the duration of lease as specified by the ...