2. Objective of this chapter
• The objective of this chapter is to make you understand about
cost sheet, the basic terms and calculations in real estate.
Trainings by Vidya Bhagwat
4. Cost sheet Terminologies
1.
2.
3.
4.
Registration
Stamp Duty
Valuation
Fungible FSI
• Free of FSI
• Carpet Area
• Saleable Area Concept
• S.A (Saleable Area) = B.A (Built-up Area) + C.A (Common
Area)
• FSI Efficiency
5. New Development Control Rules
Trainings by Vidya Bhagwat
• Downward Loading
• Upward Loading
6. Saleable Area Definition
5. Registration
Registration means recording of the contents of a document
with a Registering Officer and preservation of copies of the
original document. The documents are registered for the
purpose of conservation of evidence, assurance of title,
publicity of documents and prevention of fraud. Also,
registration helps an intending purchaser to know if the title
deeds of a particular property have been deposited with any
person or a financial institution for the purpose of obtaining
an advance against the security of that property.
Trainings by Vidya Bhagwat
6. Stamp Duty
• It is a type of tax which is paid for the transaction performed by way
of document or instrument under the provisions of Bombay Stamp
Act, 1958 and Indian Stamp Act, 1899. It is payable on instruments
and not on transactions. The payment of proper Stamp duty on
instruments bestows legality on them. Such instruments get
evidentiary value and are admitted in evidence in Court of law. The
stamps are required to be purchased in the name of one of
executors to the instrument.
• Certain kinds of documents viz. Mortgage deed, release, security
bond, settlement, bond etc. in the case of conveyance, the grantee
and in the case of lease the lessee shall pay the stamp duty, in the
case of exchange of property, both the parties in equal share shall
Trainings by Vidya Bhagwat
pay stamp duty. In case of partition, the parties thereto in
proportion to their respective shares should pay stamp duty.
7. Valuation
Valuation can be defined as the process of ascertaining the
market values of the immovable properties so that the
executants of the document can be correctly guided on the
amount of stamp duty required to be paid. In short valuation
is a supplementary function of registration aimed at assisting
the officers for deciding upon the value of the property.
Trainings by Vidya Bhagwat
8. Fungible FSI
As per new DC Regulation, any area near/inside an
apartment, not included in the carpet & which can be
enclosed inside, for eg: flower bed area, dry area, passage etc
has to be taken into consideration while submitting approval
plans, and these areas would be included in FSI. A builder can
buy maximum of 35% area(in case of residential
development) as fungible FSI by paying the ready reckoner
rate of the region. Do note that this is over and above the
total FSI consideration. Thus here the equation for the
constructible area becomesby Vidya Bhagwat
Trainings as below:
C= L * (F+35%F)
9. Fungible FSI
1. Free of FSI:
As per the new DC rules, the only areas that will not be
considered inside FSI are Car Parking, Meter rooms, DG
rooms, thus being free of FSI.
Trainings by Vidya Bhagwat
10. Fungible FSI
2. Carpet Area:
As per new DC rules, any area inside the apartment, and
adjoining it can be considered to be the carpet area of the
apartment, this would not include the common area, but will
include internal areas such balconies, dry area, etc & passage
area to the apartment.
Trainings by Vidya Bhagwat
11. Fungible FSI
3. Saleable Area Concept:
In conventional terms saleable area of an apartment includes
the built up area (wall thickness + carpet area) & the common
area of the floor in which the apartment is located, the
common area can also include the common lobby & lift area
as per the developer’s discretion .Thus giving rise to the
equation:
S.A (Saleable Area) = B.A (Built-up Area) + C.A (Common Area)
The thumb rule usedTrainings bydevelopers to obtain saleable
by most Vidya Bhagwat
area is Carpet Area + 40 % (Carpet Area), This 40% is called
the upward loading on Carpet Area.
12. Fungible FSI
4. FSI Efficiency:
The FSI Efficiency is the index used by the builder so as to
calculate efficient use of FSI in the plan. The more the FSI
Efficiency, the more the returns from the project. FSI
Efficiency can be equated as below:
FSI Efficiency = S.A (Saleable Area)/Carpet Area
Trainings by Vidya Bhagwat
14. Saleable Area Definition
• How does a developer arrive at the saleable area for their
apartments?
• It’s truly a magical figure for customers, since they are
charged on the basis of the saleable figure. Most people think
that the architects decide upon on the saleable area, and
there are also those who think that the builder just makes up
the saleable area without any consideration. Both the
assumptions are not true. There is a definite scientific
approach in arriving at the saleable number. Since this post
would involve certain technicalities associated with the real
Trainings by Vidya Bhagwat
estate industry, I will request the novice to read my earlier
posts before reading this one.
15. Summary
• Cost sheet informs us about the total amount that is to be
paid to the builder and also to the government.
• Government Charges are always fixed and compulsory to be
paid.
Trainings by Vidya Bhagwat
16. Assignments
1. Create a cost sheet.
2. Write a report on
• Stamp duty
• Registration
3. Collect cost sheet and brochure of any 4 apartments and
make a study on it.
Trainings by Vidya Bhagwat
