A home is by far the most cost-intensive investment that most Indians will ever make in their lifetimes. Consequently the process is almost always protracted and complicated.

The home-buying process invariably involves personal inspection of a number of options at close quarters, including location, quality of construction, legal sanctions, appropriateness of said amenities, reputation of the developer and appreciation potential. There are options galore and customers tend to get deterred not just with choices but with the real estate jargon governing those choices. Simplified here are common terms used more frequently by developers that will help you make a satisfying and informed choice.

FSI (Floor Space Index) Floor Space Index and floor area ratio are used interchangeably, causing confusion. Both are unified development codes applicable in cities and are synonymous with the other, although FSI is more commonly used in India.

Did you know that there are rules governing how tall a building can be? Termed FSI, mathematically speaking, this is the total covered area on all floors of all buildings on a certain plot divided by the area of the plot. i.e. (FSI) x (plot area) = Maximum build-able Floor Space.

Simply, it means the buildable area on a plot of land. For example, if you have a plot of land of 100 sq m and the FSI of that area is 1, then you can build 1x100 sq m of floor space (area of construction equals the area of the plot).

Alternatively if you build 40 sq m on the ground floor, 40 sq m on the first floor, then you can only build 20 sq m on the second floor because the total built floor space in this case should not exceed the plot area of 100 sq mt. Similarly, if the FSI for that same plot of land was 2, then you could build 2x100 = 200 sq m on that land. The higher the FSI, the taller a building can be unless there is a height restriction depending on the law of the land. Premium FSI refers to permission obtained to build extra floor space by paying a premium.

Carpet area, Built-up area Carpet area is literally defined as the exact area within the walls of your home. To make it downright simple: If you had to lay out a wall-to-wall carpet in your entire house, the area it would cover is the carpet area, whereas built-up area includes not just the carpet area but also the area being occupied by the walls of your home. Super built-up area is what we often talk about. It is a very inclusive term. It is the built-up area plus proportionate area of common areas such as the lobby, lift shaft, stairs, etc.

Sale deed If there is one important thing that gives legal protection to ownership of your property, it is the sale deed. This is a document that contains details of transfer of property ownership from a seller to a buyer.

One of the most valuable legal documents while purchasing or selling property, this document needs to be registered mandatorily and is governed by the Registration Act. The purchase or sale of property is not legally complete until a sale deed is signed between buyer and seller.

Stamp duty If only the cost of the unit was the only expense involved! Purchasing property involves duties and registration charges, one of which is stamp duty.

This is simply a type of tax collected by the government under its jurisdiction for a transaction of property. As a general rule, stamp duty is generally paid by the purchaser. The percentage of stamp duty levied varies in different States. For those who buy flats, stamp duty is calculated on the basis of the land parcel applicable to the purchaser in the multi-storey apartment.

This is known as undivided share (UDS) of the property. For example, if a building has been raised on 2,400 sq ft and has 10 equal-sized apartments, each member has to pay stamp duty for 240 sq ft land.

The size of UDS varies depending on the apartment size.

These terms represent some common real estate terminology explained in conversational terms. This informal guide has hopefully answered a few of questions and spared first-time buyers the typical anxiety.

Brotin Banerjee is Managing Director and CEO, Tata Housing

comment COMMENT NOW