CREAA

The NATIONAL ASSOCIATION OF REALTORS, The Voice for Real Estate®, is the world's largest professional association. Founded in 1908, NAR has grown from its original nucleus of 120 to over 1.3 million members today. NAR is composed of REALTORS who are involved in residential, commercial and land real estate as brokers, salespeople, property managers, appraisers, counsellors and others engaged in all aspects of the real estate industry. The term REALTOR is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS and subscribes to its strict Code of Ethics.

Members who belong to any one local associations/boards of the state and territory associations of REALTORS are automatically eligible to become a NAR India Member to enhance their expertise and network with other professionals globally.

If you're not a member of the local state association then becoming a member with NATIONAL ASSOCIATION OF REALTORS will not be possible and if you have joined with any local state association then one becomes eligible to take advantage of all the benefits of membership - including accessing the member ONLY parts of our site. Membership in a local association automatically extends your membership to the state association and national association. As a member, you are the voice for NAR - it is your association and it exists to help you increase your business opportunities.

A real estate agent is a REALTOR, when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS through its local state association. The term "REALTOR" is a registered collective membership mark that identifies a real estate professional who is a member of his State Local Association which directly comes under the NATIONAL ASSOCIATION OF REALTORS and abides by its strict Code of Ethics and Standards of Practice.

In India, the NAR has its annual convention in the month of July, every year. Chennai Real Estate Agents Association has successfully completed its convention in the year July 2010 and has created a great awareness among its consumers in Chennai and whole of Tamil Nadu and has made everyone to understand the real value of working with REALTORS. From their voluntary adherence to a Code of Ethics to their incomparable knowledge of real estate processes, REALTORS are the experts of residential and commercial property transactions.

The Planning Commission of India defines "REAL ESTATE" as land, including the air above it and the ground below it, and any buildings or structures on it. It is also referred to as REALTY. In simple words property consisting of land and anything fixed, immovable or permanently attached on it, along with its appurtenances, buildings, fences, fixtures, roads, natural resources such as crops, minerals, or water; immovable property of this nature, surface rights which can be bought, leased, sold or transferred together or separately; an interest vested in this; (also) an item of real property or realty; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings, or housing.

It is impossible to know when the first real estate transaction took place. Perhaps someone offered his seat to someone else in exchange for a morsel of food. One can only speculate. There have been several ideas and technologies that have advanced the practice of real estate throughout the years.

Complex tools like mortgage securitization now have an outsized influence on our economy, but such tools are built out of some simple traditions that carry on to this day.

A title, in modern parlance, is a document that shows proof of ownership of a piece of real property. It confers on the owner a set of rights and responsibilities regarding the property. When you buy a house and the deal closes, the old owner gives you the title. In the distant past, kings owned entire countries by divine right. They conferred titles, such as lord or duke, on favoured nobles in exchange for their allegiance and military aid. These titles came with hereditary holdings of real property, land, manors, and the peasant labour that occurred therein. Titles have since transformed into legal documents, but the idea behind a title remains the same. Deeds are similar to titles, but may confer less than full ownership to its holder. These terms (title, deed) are thousands of years old. When you buy a piece of property, you become lord of the manor in more than just a manner of speaking.

A mortgage is a unique loan product, designed specifically for real estate. The loan is based on collateral represented by a piece of property. A mortgage is essentially a loan that must be paid back in a set number of payments in a set amount of time. For example, a 30-year mortgage might have 360 monthly payments, each one the same amount, from the first to the last. As each month passes, the amount of interest paid decreases while the amount of principal paid increases. There are adjustable rate mortgages and pre-payment plans, but the idea of the mortgage as a fixed agreement remains. Failure to meet even one of the agreed upon payments can give the lender the right to evict the borrower and foreclose on the property. Nowadays, it is the rare individual who can afford such a large investment without a mortgage.

Mortgages have been around since at least the 15th century, when the word was coined. The idea probably predates the word. Mortgages used to be reserved for nobility who would use the proceeds from their land to keep the land in their family. Mortgage lending began on a much wider scale in the middle of the 19th century, after the Industrial Revolution democratized wealth to a great degree. Lenders began offering mortgages, making land ownership much more widely available to the average person. In the United States, government guaranteed loans, and developers such as William Levitt made home ownership synonymous with prosperity following the Great Depression.

Securitization is the process by which lenders collect many loans into a single financial product. They then sell off percentages of this product to different buyers. This aggregation of risk (a single homeowner might default on a loan, but the other loans in the product support its value) seemed to insure against the possibility that loans were risky investments.

The opposite has proven to be the case, when low interest rates and loosened regulation led to a housing bubble in recent years, these securitized pools of loans threatened the world economy. Although securitization continues, increased regulation could decrease the possibility of bubbles in real estate markets in the future. It might not succeed. What does remain clear is that real estate continues to be the preferred investment for families to hold and increase their wealth. The future looks safe for real estate.

A career in real estate can be deeply satisfying as well as monetarily rewarding. There are many different job descriptions in the real estate industry. Many involve working outside of the standard office paradigm, helping people make the biggest decision of their lives and having the opportunity to grow professionally. The popularity of a career in real estate has not dimmed even as the real estate market in the United States and beyond has been buffeted by a series of unprecedented shocks. If you were thinking about obtaining a real estate degree, it would behove you to consider the benefits of a real estate career.

Real estate professionals are often attracted to the industry by the promise of prosperity. Real property is a huge investment mainly because it is expensive. When real property is sold, a commission of even a couple percent can be a sizable sum. The salaries are high when compared with other professional careers. It is also highly variable, as many brokers make substantially more in commissions than others, depending on their ambition, knowledge, and ability. Many real estate professionals are also able to take advantage of their own knowledge of markets to invest successfully in property. They can increase their earnings by flipping houses, buying property to manage, or managing property for others. The money in itself can be enough of a reason for some people to choose a career in real estate. There are others.

Real estate professionals enjoy status in the community. Their faces are printed on billboards, flyers for property, and at bus stops. Because they have helped people with their most important investments, they are trusted figures to many. Their relatively high earnings allow them to become benefactors in the community. They also act as teachers, advising first- time buyers on how to make a successful investment. All of these factors contribute to the importance of real estate workers in their neighbour hoods.

Being a broker is not a 9-to-5 job. Open houses are often held on weekends or evenings to allow working people the opportunity to attend. Appointments to view properties or show them to clients can be scheduled at almost any time. This lack of orthodoxy in scheduling could add up to greater freedom with one's time. Selling a particular property sometimes takes a lot of work, but often takes very little depending on the buyers and sellers. This leaves real estate professionals a lot of flexibility and freedom to set their own pace, hours, and income. Some brokers are content to handle a few properties at a time while others hold classes to drum up extra business. The autonomy that this kind of work allows suits a certain temperament.

There is a lot of personal satisfaction to be gained through a real estate career. First and foremost, real estate is about helping people. Brokers are educators, lending their knowledge and expertise to clients. They often give classes on the home-buying process for first-time buyers. Buying a home can be a crucial event in a person's life, a milestone like graduating from school or getting married. Helping people achieve this milestone is a fantastic reward in its own right. Real estate is also an intellectual challenge. Markets are volatile creatures that require skill and acumen to understand. Properties are about more than just numbers, however. Selling properties also requires aesthetic intelligence, also known as taste, to succeed. By using these skills, professionals can succeed in matching buyers with properties. A closing is one of the most satisfying accomplishments available to a broker. Satisfaction from a job well done could be the biggest advantage of them all.

This a multifaceted business, encompassing activities that range from the renovation and re- lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property.

Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end. Developers usually take the greatest risk in the creation or renovation of real estate-and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structure, and lease, manage, and ultimately sell it. Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, leasing agents and more.

It is the application of economic techniques to real estate markets. It tries to describe, explain, and predict patterns of prices, supply, and demand. The closely related fields of housing economics is narrower in scope, concentrating on residential real estate markets as does the research of real estate trends focus on the business and structural changes impacting the industry. Both draw on partial equilibrium analysis (supply and demand), urban economics, spatial economics, extensive research, surveys and finance.

Indian cities are normally categorised into three tiers:

1. Tier I comprises the Delhi, Mumbai and Bangalore.
2. Tier II consists of Hyderabad, Pune and Chennai, the cities targeted by companies as alternative off shoring destinations and which now possess a well-trained pool of skilled labour. According to a Deutch Bank (DB) Research the cost advantage of Tier II cities over those in Tier I is estimated at 15% to 20%.
3. Tier III cities: But given the rising costs in Tier II cities in recent years, companies are increasingly eyeing Tier III cities. These are cities with populations of more than a million (10 lakhs) are not yet completely established as outsourcing and off shoring destinations. Their absolute cost advantage over Tier I cities is estimated at between 15% and 30% by the same DB Research.

The real estate construction and values have expanded in India - buoyed by healthy economic growth, and coupled with a series of IPOs by property firms - so in recent years has India's property sector changed substantially. These trends of growth and modernisation are set to continue, with some market participants forecasting that real estate development in India will grow from US$12 billion in 2005 to US$90 billion by 2015.

In addition, international capital has become more interested in Indian property and is seeking transparent and liquid ways to invest. Furthermore, with a more global property market, the level of competition in the Indian property business is rising, while the need for property firms to strengthen their operational infrastructures, personnel and finances to better compete is also becoming more acute.

India's GDP growth rate has averaged more than 8% over last few years, up from an average of around 6% during the 1990s and has touched the 9% last fiscal. India emerged as a land of opportunities. The principle drivers of India's GDP are changing demographics, rising levels of foreign investment, a vibrant services sector powered by the IT and ITES sectors and buoyant exports.

Notwithstanding concerns over lack of structural reform, these factors are likely to be sustained in the foreseeable future, resulting in continued strong GDP growth. This economic growth has, in turn, stimulated demand for property to help meet the needs of business, such as modern offices, warehouses, hotels and retail shopping centres. It has also boosted housing demand as a wealthier populace seeks upgraded accommodation. Moreover, shrinking household size and improved access to housing finance have boosted the demand for residential property. Tax incentives have also been granted to interest and principal paid on home loans, which has made owner-occupied property more attractive.

Indian real sector has seen an unprecedented boom in the last few years. This was ignited and fuelled by two main forces. First, the expanding industrial sector has created a surge in demand for office-buildings and dwellings. The industrial sector grew at the rate of 10.8 percent in 2006-07 out of which a growth of 11.8 percent was seen by the manufacturing sector. Second, the liberalisation policies of government have decreased the need for permissions and licenses before taking up mega construction projects. Opening the doors to foreign investments is a further step in this direction. The government has allowed FDI in the real estate sector since 2002. FDI was deemed necessary in the view of making the sector more organised and increasing professionalism. farmers. The villages adjacent to the metro cities have experienced sky-rocketing land prices. This has induced farmers to sell their land for good money.

The real estate market in India is yet in a nascent stage and the scope is simply unlimited. It does not resemble a bubble that will burst. An unhindered growth for the next twenty years is almost sure. This is because the outsourcing business in India is going in great guns and this entails a huge demand for commercial buildings and urban housing besides improvement in infrastructure. The organised retail market in India is also accelerating with players like Wal Mart, Bharti, and Reliance etc. looking forward to make a foray thus stepping up the demand for real estate.

According to former Planning Commission Advisor Tarun Das, a price index for the housing market to track price movement must be incorporated. The government must ensure that there is no shortage of funds. SEBI's (Securities Exchange Board of India) recent harbinger of permitting real estate mutual funds in both private and public sector will go a long way in attracting funds from small investors who emphasize on certain return. Another impediment that can be eased on the discretion of government is the existing tax laws and other complex regulations relating to multidimensional real estate's such as industrial parks and SEZs (Special Economic Zone). RITES (Real Estate Investment Trusts) of the type introduced in U.S., U.K. and Germany should be imitated and explored in India too.

In consideration of the brokerage successfully finding a satisfactory buyer or seller for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a satisfactory buyer or seller for the real estate for sale, the successful negotiation of a purchase contract between a satisfactory buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. The median real estate commission charged to the seller by the listing (seller's) agent is 2% to 5% and 1% to 3% from the buyer on the purchase price. Typically, this commission is split evenly between the seller's and buyer's agents, with the buyer's agent generally receiving a commission of 1% to 3% of the purchase price of the property sold. The commission is quoted based on the property where it is located / situated.

1. What is one ground? One ground is 2400 sq.ft or 5.5 cents.
2. What is one cent? One cent is 435.60 sq.ft
3. What is Plinth area? Building outer wall to outer wall measurement is called Plinth area.
4. What is carpet area? Carpet area is the usable area inside a flat / house.
5. What is common area? Common area is nothing but area including staircase, staircase head room and over head tanks (both well & corporation water tank).
6. What is total area of the flat? Total area of the flat is nothing but plinth area plus common area.
7. What is FSI? Floor Space Index is called FSI. It is the ratio between the extent of land to the plinth area.
8. How to calculate FSI? FSI = Plinth area / Extent of Land.
9. What is normal allowable FSI in Chennai? For a 30 ft road, the FSI is ranging from 1.24 to 1.3 For a 33 ft road, the FSI can go up to 1.5 At present, the max allowable FSI is 1.5
10. What is the Undivided Share of Land? UDS = Total Extent of Land x Total area of the individual flat  (or)  Total Built-up area x Total area of the individual flat
11. What are included in the sq.ft rate offered by the builder? The rate includes the land cost and the construction cost. To get the exact picture about the components covered under the construction cost, please refer the next list.
12. What is the normal scope of builder/buyer in construction?

    S.No	Activity	Builder	Buyer
    1	Sale agreements	Yes	Yes
    2	Statutory approvals	Yes	No
    3	Building drawings	Yes	No
    4	Sale deed	Yes	No
    5	All Civil construction works	Yes	No
    6	Electrical items
    	Incoming mains, switches, points	Yes	No
    	Bulbs, fans and other fancy items	No	Yes
    7	Plumbing
    	All plumbing works	Yes	No
    	Basic fittings (Taps, EWC, wash basins etc)	Yes	No
    	Special items like Bath tub etc	No	Yes
    8	Wood works & grills
    	Doors & windows	Yes	No
    	Other cupboard doors / showcase etc	No	Yes
    	Balcony grills	No	Yes
    9	Metro water connection	Yes	No
    10	Electricity connection	Yes	No
    11	Items that are normally excluded in the flat construction cost
    	Land Registration cost	No	Yes
    	Connection charges for electricity /metro water	No	Yes
    	Cost towards additional wood work / electrical fittings like bulbs, fans, chandeliers, geysers	No	Yes
    	Cost towards grill gates, balcony grills	No	Yes