There are several meanings of Draw. Firstly, there is the literal meaning, i.e. the act of drawing or sketching something. Second, there is another meaning, i.e. a contest, competition, or game, which ends with the score being tied. We have all heard of drawn matches in football or cricket. Third, there is yet another meaning which is the act of randomly selecting names for taking a decision on the winners in any lottery or competition.
The definition of draw in a more real estate oriented context would be any of these two things-
a. Any request made to a lender for advancing funds under any loan scheme for construction or future advances.
b. A periodic request by the sub-contractor or contractor for any part of the agreed/contracted price for any task, mostly based on the completion percentage of the assignment, and also labor and material costs.
Draw can thus be used in several ways in the real estate spectrum. It can be used to denote a draw of lots to determine the eligible winners of any lottery under a housing scheme. There are many such schemes implemented by State Governments and development authorities in affordable and mid-range housing segments throughout several cities and towns.
At the same time, it can also indicate a request made for withdrawing cash during the construction of any real estate asset, as per the terms and conditions of the construction loan. It can also mean writing out a cheque or draft for paying money or even writing any document like a deed, contract, petition or even a will, all of which may have an intricate relationship with property. It may also mean the constitution of any jury for hearing any action of the court via a procedure of selecting names. These are the prevalent meanings of draw that you should know more about.
