Abstract
Three methods are frequently used to determine a property’s area: carpet, built-up, and super built-up area. As a result, there may be a big gap between what you spend and what you get when buying a house.
It should be no surprise that developers are the target of most complaints filed in consumer courts for flat-size fraud. The Real Estate (Regulation and Development) Act of 2016 (RERA) mandates that developers inform customers of the carpet area and base price quotes thereon rather than on the super built-up area.
Introduction
There are three different techniques to determine the property’s area; there isn’t just one. They are the built-up area, super built-up area, and the carpet area (RERA carpet area). Developers and builders experienced a large number of fraud and deception incidents as a result of various approaches. There were grievances that apartment areas were not as large as promised to homebuyers.
The Real Estate (Regulation and Development) Act of 2016 (RERA) introduced a provision to address this issue, requiring builders to estimate prices based on the RERA carpet area rather than the super built-up area. There may be some confusion about these words if you decide to purchase an apartment, so let’s learn what is RERA carpet area, how to calculate RERA carpet area and the distinction between a super built-up area and a built-up area.
What is RERA Carpet Area?
The carpet area as per RERA is the net useable floor space of an apartment plus the internal walls, except the size of the exterior walls, services shafts, exclusive balconies or verandah areas, and exclusive open terraces. Exclusive here refers to the allottee’s intended exclusive usage of the open terrace location. Developers and builders must all quote the RERA carpet area when selling a property, not any other sort of space.
Homebuyers will receive a refund if the project is still under development and the carpet area changes. If there is a reduction, the builder will repay the surplus money together with yearly interest. The money must be returned within 45 days. A homeowner must pay the additional amount if the area rises.
What is the Carpet Area?
Areas that may be carpeted are often referred to as carpet areas. Technically speaking, it is the portion of an apartment that is useful but not protected by exterior walls, beneath service shafts, on a private balcony or verandah, or on a private open terrace.
What is the Difference Between the RERA Carpet Area and Carpet Area?
Now that we are familiar with both the RERA and carpet area definitions, we can see that the sole distinction between them is the thickness of the inside walls. The inside walls’ thickness is also considered in the RERA carpet area.
Therefore, there is around a 5% difference between the two carpeted regions. Typically, the carpet area as per RERA is 5% larger than the carpet area. For instance, if an apartment had 800 square feet of carpet space, its RERA carpet space would be 840 square feet.
How to Calculate RERA Carpet Area?
Since the carpet area typically makes up about 70% of the built-up space, calculating the carpet area as per RERA or using a RERA carpet area calculator is simple. For instance, if a home had a constructed size of 2000 square feet, its carpet area would be 1400 square feet. Here are some guidelines on how to calculate RERA carpet area:
- Enlist the assistance of a private technical assessor.
- Ask legal and technical assessors of a property to check for specifications if you are taking out a house loan.
- Be cautious since a builder may offer a higher price depending on the RERA carpet area; thus, bargain after examining the costs of comparable properties.
What are the “Built-Up Area” and “Super Built-Up Area”?
Before the implementation of RERA, builders would offer rates based on built-up or super built-up areas, which drove up the price of an apartment. Because homebuyers did not receive what was promised, fraud and scamming charges resulted. Super- and built-up regions are always more expensive than RERA- or even carpet-covered ones.
Built-Up Area: It refers to the area of a building as measured from its exterior perimeter walls. The carpet area and wall thickness are included. It also has additional residential spaces, like the patio, flower gardens, and dry balconies. The following formula determines the built-up area:
Built-Up Area = Carpet Area + Area of Walls
Super Built-Up Area: It is a portion of the property that may be sold. This region has carpets, walls, terraces, elevators, stairs, and balconies. A clubhouse, garden, or pool area is another feature that some builders include.
The super built-up area is calculated using the loading factor on the carpet area. According to RERA, a super built-up area comprises carpet, built-up, and communal spaces, including lobbies, elevators, and staircases. In a super-built-up environment, you need to have:
Super Built-Up Area = Built-Up Area + Common Areas
Major Disclosure Of Carpet Area And Its Impact
Buyers will now understand the actual dimension of the flat they may fairly anticipate receiving from the developer. Additionally, they will be well aware of the proportions of the carpeted and terraced areas of the apartment. Additionally, developers will need to plan their projects with greater rigour. to ensure accurate translation of designs to real carpet areas.
- Unreliable developers used to include flower beds, vacant spaces, verandas, terraces, and balconies in the definition of carpet area. This practice has been discontinued.
- Corner apartments and other apartments positioned in specific favourable or unfavourable locations are sometimes used to obtain a little more or less carpet space. Apartments in prime locations with more carpeting were always more expensive, while those with less carpeting were never discounted since the missing carpeting was typically hidden in the extremely built-up area.
- Effectiveness and good design are increasingly essential. Previously, an excellent design and an inefficient design that used too much space in the common spaces might both have the same super built-up area but differing carpet areas, and both would perform equally well.
Since the overall price would be divided by a smaller numerator, property rates per square foot will undoubtedly increase (carpet area, as against super built-up area). However, at least now, homebuyers will be aware of what they are entering into. They won’t buy a 700-square-foot apartment when they bought a 500-square-foot unit.
Is RERA Of Any Benefit To The Home Buyers?
The RERA’s objectives are to promote openness in the real estate industry and protect consumers’ interests. Since RERA regulates all projects, a builder must provide a price proposal based on the carpet area as per RERA. The regulator is assisting consumers in making financial savings; an illustration will help:
A builder provided a quote in May 2015 for Rs 60,00,000 for a three-bedroom flat. The price was calculated using a flat’s super constructed size of 1500 square feet at a rate of Rs 4000 per square foot.
The RERA carpet area states the price, and the RERA rules must be adhered to. The RERA carpet area in this instance is 1200 sq ft, which includes a portion of the open terrace, a portion of the special balcony or verandah, portions under service shafts, and parts covered by the outside walls.
Moreover, the dimensions of the interior wall partitions. A person lost Rs 12 lakh since the price was stated based on the super constructed space because the price of the 3-BHK flat will be Rs 48,00,000 according to the carpet area as per RERA.
Additionally, there have been instances when a builder estimates a greater super built-up area that is untrue and for which a person must continuously pay additional property tax. One needs to be cautious while purchasing a property to determine whether the area is sufficiently protected.
Conclusion
A property buyer must understand the distinctions between the RERA carpet area, carpet area, built-up area, and super built area. When you are aware of the difference, you can bargain more effectively and demand the proper amount. Not only that, but it also contributes significantly to cost savings. Therefore, it’s wise to do some research before making a purchase.
Frequently Asked Questions
What is a salable area as per RERA?
The super built-up area, which includes any shared areas in an apartment with useable space, is what is sold.
How can I file a complaint against a builder?
You can register a complaint with RERA if you discover a disparity between the promised area and the actual area. To make a complaint, access an online website by going to the state RERA website or the RERA office.
What if the builder does not give a promised carpet area?
If a builder fails to provide the promised carpet or quotes a price outside of the carpet area as per area, it is a serious offence. A builder, developer, or promoter who violates Section 61 of the RERA Act 2016 shall be fined 5% of the project’s cost.
