Lease:- A written agreement between the property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time
Super Area:- It is built up area plus area falling under common amenities namely stairs, lift, lobby, corridors, club, etc. Super built up area is generally 25% more than built up area
Carpet Area:- Carpet Area is the area enclosed within the walls of the house, office, retail space etc. It is the usable area available to the occupant and includes staircase/s within the unit. Built-up Area (BUA) includes carpet area plus thickness of walls, area of balconies, terraces or lawns etc.
Covered area:- Covered Area is the actual area of any apartment which is also consider as Gross area. Whereas a Carpet Area is the area calculated from wall to wall inside the house and Built up area is the carpet area + area covered by thickness of walls+ balconies etc.
- Bare shell or Cold Shell: – A bare shell is a commercial or residential building with an unfurnished interior and lacking, power-backup heating, ventilating, and air conditioning.
- Warm Shell: – A warm shell is a commercial or residential building with an unfurnished interior but having provision of power-backup heating, ventilating, and air conditioning.
- Fully Furnished:- A Fully Furnished is a commercial or residential building with a furnished interior and having facility of power-backup heating, ventilating, and air conditioning. Flug n play office is known as fully furnished.
Common Area or Common Elements:-The common area is the area in the property or in the building that is available for use by all owners and tenants.
Common Charge:-The monthly charge levied by a condominium to cover the cost of maintaining the common areas and services.
Sublet:-A sublet is when the owner of an apartment or the main lease holder decides to rent the apartment to a sub-tenant.
Title:-The title of a property is the evidence or documentation that an owner is in lawful possession of the property, such as a property deed.
Lock-in:-An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.
Lock-in period:-The time period during which the lender has guaranteed an interest rate to a borrower.
Stamp Duty:-A Stamp duty is a kind of tax that is levied on the transaction concluded by way of documentation or instruments.
Registration:- The process of registration involves the submission of transaction documents (Copies) to the required governmental officer for preservation. Once the stamp duty has been paid on a document, it has to be registered under the Indian Registration Act (1908) with the sub registrar of Assurance of the locality of the property.
Walk-up Building:-A walk-up building is a building that does not have an elevator and are usually four or five stories.
Valuation:-Valuation establishes an opinion of value utilizing an objective approach based on facts related to the property, such as age, square footage, location, cost to replace, etc.
Fit-out Possession:-Developers offer ‘Fit-out’ letters to their customers, stating that they have applied for Completion/Occupation Certificate from the Concern Authority. And in the meantime, premise allottees can take up temporary possession of their units for the purpose of interiors and fit-outs. Developers are making it clear that buyers/tenant can shift into their premise only once the lease deeds have been executed.
Quoted Rent:- The Amount of rent that a landlord is advertising for their space.
Certificate of Occupancy:- Permission by the government/building inspector to have tenants move into the building.
When a new building is completed, the inspector must certify it as safe and up to code.
Rent escalation:- Rent escalation is a lease provision in which the landlord requires the tenant to pay a higher aggregate rent by adjusting the annual base rent by an agreed method during the term of the lease agreement. There are two reasons for this.
- to increase the building’s revenue and, therefore, its value
- to ensure that the base rent will keep up with inflation
- Leasehold is a form of land tenure or property tenure where one party buys the right to occupy land or a building for a given length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market.
Common Area Factor :-The common areas of a building are those used by all tenants, such as a lobby, elevator, or hallway. The factor represents the ratio of common areas to total building square footage.
The number is used to calculate how much a tenant will pay for their share of a building’s upkeep. Tenants occupying more square feet will pay a larger proportion of the common area factor.
Letter of Intent:- A written statement saying that two parties are negotiating an agreement for a space of building. It might be signed by both parties, indicating that the agreement will go forward with provisions, or just by one party, when they are indicating that they would accept an offer based on certain term.
Usually the step that occurs before the lease is actually signed. Is where a landlord offers terms to a tenant, or tenant tentatively agrees to terms of lease or sale.
Request for Proposal:- A document sent out to various landlords or owners, inviting them to submit their best offer of a lease rate and terms for space the tenant wants to lease.
Allows a tenant to see what various buildings are willing to offer. Also lets tenant ask about specific options.
Rent Free Periods:- A rent free period is often offered by landlords under the terms of a commercial lease , with a view to encouraging a prospective tenant to sign a new lease, or to encourage an existing tenant to remain in occupancy of premises.
Tenants usually need to carry out fit out works to rented property at the start of the lease, to make it ready for whatever their business might be. This can be range from putting a lick of paint and a couple of shelves on the walls to making wholesale structural changes. Sometimes landlords will agree to grant a rent free period to reflect the additional cost of the works.
In real estate, the residents or owners of the property in a specific area are charged for maintenance and operations of the commonly-owned property areas. This charge is called maintenance charge.
Description: Generally maintenance charge is levied periodically. It is required to fund operations related to upkeep, maintenance and upgradation of such areas which are not directly under any individual’s ownership.
Rent Security Deposit:- A Security deposit is a deposit of money to the landlord to ensure that rent will be paid and other responsibilities of the lease performed. (Eg:- Paying for damage caused by the tenant). The laws surrounding these deposits vary from state to state.
The landlord must return the security deposit within a fixed time after the termination of tenancy. However, the landlord can usually deduct for any unpaid rent which has not been with held validly or deducted under the law, and any reasonable amount necessary to repair any damage caused by the tenant. Pet damage can also be deducted. The tenant does not have to pay for reasonable wear and tear associated with normal use. However , the tenant is responsible for maintaining the premise in a clean and sanitary condition, free of garbage and rubbish.