Real Estate Common Terms Part 2

Having a basic knowledge of the jargons while dealing with real estate is important- it not only makes it easier to decide your course of action but also ensures you are on the right path. As such, in one of the earlier articles, we already informed our readers of the terms pertaining to people involved in a real estate deal.

TYPES OF PROPERTY

There are mainly 4 types of property when it comes to real estate dealings. All these types pertain to why you need to buy/lease the property in the first place. These are Residential, Commercial, Industrial and Vacant land.

RESIDENTIAL PROPERTY

This type, as the name suggests, is meant for living. New and old apartments, colonies, cottages, condominiums, vacation homes, co-ops and single-family houses et cetera, come under this category. These are meant for habitation purposes only.

COMMERCIAL PROPERTY

These are the ones where you can freely conduct your business of any kind and as such their locations are mostly in places with heavy footfall. Shopping centers, restaurants, office buildings and malls come under these.

INDUSTRIAL PROPERTY

Warehouses, factories and any property used for production, distribution and storage of goods come under the umbrella of Industrial properties. They are often in fairly isolated areas like city outskirts, that is, not to say they can’t be in other busier areas but the main city is a better fit for residential and commercial real estate.

LAND

It includes vacant land that might be undeveloped or under-development, along with farms and ranches. There are other subcategories too pertaining to the plan the authorities might have for the specific property and the stage of development it is in.

TYPES OF OWNERSHIP

Apart from different property types, there are also different types of home ownerships when it comes to residential properties. These are of mainly 3 types –

FREEHOLD OWNERSHIP

Having a freehold ownership over a property means you own the house and the grounds, that you are the sole owner and have all the rights and responsibilities related to the property. This is the most common type out there.

CO-OPERATIVE OWNERSHIP

Co-op for short, this type of ownership means you own a share in the entire building and have to pay for a part of maintenance as opposed to having the entire responsibility which comes with freehold. That is to say- partial rights and partial responsibility.

CONDOMINIUM OWNERSHIP

Seen commonly in apartment buildings where you own your unit and your neighbor owns theirs, each responsible for their own part but have to pay a monthly maintenance towards the upkeep of common areas such as garages and elevators.