Monday, 10 December 2018

Must Known Abbreviations In Real Estate



The real estate world is really vast and there are thousands of words which are known by their abbreviations. Are you planning to buy a new real estate property or about to start your career in the real estate industry, it’s good to get familiar with these commonly used real estate abbreviations. Here is a list of some of the most commonly used real estate terms.

    BSP – Basic Sale Price
The Basic Sale Price is also called as Market value (MV). It can be defined as the base rate per sq ft at which a developer advertises the property. The market value doesn’t include the extra charges associated with a property purchase such as GST, maintenance charges etc.

    LTV - Loan To Value
LTV is the ratio of home loan to the total property price allowed by finance companies. It ranges from 75 to 90 per cent of the property price. The rest amount should be paid as down payment by the buyer.

    FAR – Floor Area Ratio
FAR is the ratio of the gross floor area of the building to the size of the land upon which the construction is done.

    NOC – No Objection Certificate
It is a legal document issued by the concerned department certifying that the building is constructed according to the terms and conditions and which doesn’t violate any building bylaws.

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