Real Estate Glossary

Real estate is one of the favorable sectors for investment that yields high profit return in the long run. Not only in India but also in other parts of the globe real estate has become one of the emerging sectors for investment and gaining profit.
For first time buyer or for new real estate players it is very difficult to face real estate terms and conditions.
There are numbers of real estate glossary and housing finance terms that one has to face while conducting real estate deals. For experienced real estate players it is easy to go through all these types of terms and condition for home loan glossary but for new comers it is relatively difficult and complicated task.

With the growth of technology and use of internet you will find numbers of we resources in respect of real estate web portals that provides complete information about home loan glossary and other points in real estate glossary that helps you while dealing real estate transactions.
Acceptance Letter : Once the loan is issued through sanction letter then applicant accept the loan by way of an acceptance letter.

Advanced EMI : At the time of disbursement of loan, an advance emi has to be paid in the form of post dated cheques.

Allotment Letter : This letter comprises detail information regarding the agreed price, house plans, builder's liability in case of late completion, construction schedule and many more.

Annual Reducing Balance of the Principal : The EMIs are calculated on an annual basis where the interest is calculated at the beginning of every year on the outstanding principal.

Approved Plans : There is a documentation with the name approved plans that proves the legal construction of a particular building. It proves that the building is approved by the respective municipal corporation.

Down Payment/Margin Money : Banks and other financiers follow different criteria of offering home loan and normally loans are offered up to 80-85% of the value of the property and the balance amount has to be paid by buyer before he or she draws on the loan money which is the down payment or margin money.

EMI : EMI is stands for Equated Monthly Installment. The home loan can be repaid through these EMIs over the tenure of the home loan.

Fixed Rate of Interest : It is one of the options while applying for the home loans where the rate of interest remains fixed over the tenure of the loan.

Floating Rate of Interest : It is another options while applying for the home loans where the interest rate on the loan keeps on fluctuating that depends upon the Prime Lending Rate (PLR) fixed by the Reserve Bank.

Sale Deed : After all the transactions have made the ownership of property is handled to the actual owner in exchange for a price paid this deal is called by sale deed.