There is no single technique for calculating the size of a property; however, there are three options available. The carpet area (RERA carpet area), the built-up area, and the super built-up area are the three types. Developers and builders have encountered several instances of fraud and deception due to diverse approaches.
Homebuyers complained that they were given less apartment space than was promised. To address this issue, the Real Estate (Regulation and Development) Act of 2016 (RERA) includes a clause that requires builders to estimate prices based on the RERA carpet area rather than the super built-up area. When you decide to acquire an apartment, this terminology can be confusing, so let’s examine what RERA carpet area means, how to calculate it, and the difference between super built-up area and built-up area.
Prior to the implementation of RERA in 2016, the real estate sector was one of the least regulated in the country. We know that the real estate sector in India contributes between 6.5 to 7% of the country’s GDP. Consumers are the true victims in this unregulated industry, and their hard-earned money is misled by ” Fly buy night “, promoters, or real estate developers. Since there is no court remedy other than the Consumer Protection Act of 1956, Consumer Courts are the only option. Between real estate promoters and purchasers, there was an information disparity.
Buyers lacked sufficient information regarding the title to the land, the nature of the development, the developer’s creditworthiness, the project price, and other relevant details. Previously, promoters charged exorbitant rates for flats/shops based on unregulated lodging in the flats. The lack of standardisation and consistency was a significant problem hindering the real estate sector’s development, and as a result, the trust of innocent clients was compromised. Due to a conflict between the authorities and the developers, this practice continues.
What is the Meaning of Carpet Area under RERA?
According to RERA (Real Estate Regulatory Authority), the carpet area of an apartment is the net usable floor space of the unit, plus the internal walls, excluding the size of exterior walls, service shafts, exclusive balcony or verandah area, and exclusive open terrace area. The term “exclusive” refers to the fact that the open terrace site is designed for the allottee’s sole usage. All developers and builders must quote the RERA carpet area when selling a property, not any other sort of space.
Homebuyers will receive a refund if there is a variation between the stated carpet area (either an increase or a reduction) during the project’s construction phase. If there is a decline, the builder will repay the extra sum plus yearly interest. In addition, the money must be returned within 45 days. If the price of a house rises in the region, the buyer must pay the difference; however, RERA has set a limit of 3% growth.
Carpet Area
In general, a carpet area refers to a space where a carpet can be installed. In technical terms, it refers to an apartment’s net usable space, excluding areas enclosed by exterior walls, spaces beneath service shafts, exclusive balcony or verandah areas, and open terraces.
Is there any Difference Between Carpet Area and RERA Carpet Area?
The sole variation between the RERA carpet area definition and the carpet area definition is the thickness of the interior walls. The thickness of the interior walls is also taken into account in the RERA Carpet Area calculation. As a result, there is around a 5% discrepancy between the two carpet regions. The RERA Carpet area is typically 5% larger than the carpet area. For example, if an apartment’s carpet space is 800 square feet, the RERA carpet area is 840 square feet.
What are Super Built-Up Area and Built-Up Area?
Prior to RERA, builders listed rates based on the built-up area or super built-up area, which resulted in higher apartment prices. Because homebuyers did not obtain what they were promised, there were instances of fraud and dishonesty. Built-up and super-built-up regions always cost more than RERA carpet areas, if they exist at all.
Super Built Area:
The term “super built-up area” refers to a portion of a property that can be sold. The carpet space, terrace area, walls, lift, stairs, and balconies are all included in this area. Some builders may include a garden, pool, or clubhouse space. The super built-up area is calculated using the loading factor on the carpet area.
According to RERA, a super built-up space includes carpet area, built-up area, and common areas such as lobbies, elevators, and stairwells.
Super built-up area is calculated as follows: Built-up area + shared areas.
Built-up area:
The area of a building is measured from the perimeter wall surfaces on the outside. It takes into account both the carpet area and the wall thickness. Other apartment spaces include the dry balcony, patio, and flower gardens, among others.
The following is the formula for calculating the built-up area, which can be used:
Built-up area is the sum of the carpeted area and the walled area.
i.e., Carpeted Area + Walled Area.
How can I calculate the RERA Carpet Area?
Since the carpet area typically accounts for 70% of the built-up area, calculating the RERA carpet area or using a RERA carpet area calculator is straightforward. For example, if a property’s constructed size is 2000 square feet, the carpet area is 1400 square feet.
Here are a few pointers to keep in mind while determining the carpet area:
- Enlist the assistance of a private technical assessor.
- If you’re getting a house loan, have the legal and technical appraisers review the property to ensure it meets the requirements.
- Be cautious, as a builder may offer a higher price depending on the RERA carpet area; therefore, bargain after comparing the pricing of comparable properties.
Does RERA Help you Save Money?
The answer would be a definite, yes. And this is how it helps you save money:
The RERA’s goal is to increase transparency in the real estate industry and protect the interests of homebuyers. RERA applies to all projects, which means that a builder must quote money based on the RERA carpet area. The regulator is assisting individuals in saving money; here’s an example:
A builder offered a price of INR 60,00,000 for a three-bedroom property in May 2015. The price was calculated based on a flat’s super-constructed area of 1,500 sq. ft. at a rate of INR 4,000 per sq. ft. The RERA regulations must be observed, and the price is based on the RERA carpet area. The RERA carpet area in this case is 1200 sq. ft, which includes a space enclosed by exterior walls, regions beneath service shafts, an exclusive balcony or veranda area, and an entire open terrace area. The size of the inner divider of the walls is also important. The price of a 3-BHK flat in the RERA carpet area would be INR 48,00,000, implying that a person will lose INR 12 lakh, as the price was estimated based on the super-constructed space.
There have also been instances when a builder specifies a larger super built-up area—which is non-existent—for which a person must pay more property tax for the rest of their life. When purchasing a home, it is essential to be cautious and ensure that the region is adequately protected.
What can I do in case of any Injustice Caused?
If you have a complaint about a property builder or developer, you can contact RERA. You must lodge a complaint against a promoter, developer, or builder on a state RERA website or apply to the RERA office. A complaint will be resolved in 60 days from the time it is filed.
Penalty Charged on the Builders/Developers for Furnishing of Wrong Information
A punishment is imposed if a builder or developer gives false information about the size of an apartment or the price of a flat. If a developer provides any false information or commits any other violation, they shall be fined 5% of the project’s estimated cost, as per Section 61 of the RERA Act 2016.
Hence, we can now conclude that a homebuyer must be aware of the distinctions between RERA carpet area, carpet area, built-up area, and super built-up area. When you understand the difference, you can effectively negotiate and ask for the proper amount. Not only that, but it also allows you to save a significant amount of money. As a result, it’s usually a good idea to do some research before purchasing a home.
Frequently Asked Questions
- As per RERA, what is the saleable area?
The super built-up area of an apartment, excluding unusable space, is referred to as the saleable area.
- What happens if a builder fails to provide their customer with the promised carpet area?
If a builder fails to provide the promised carpet or quote a price in accordance with the RERA carpet 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.
- Which areas are covered under the carpet area as per RERA?
The inside walls of the home are covered by the RERA carpet area, which includes the bedroom, dining room, kitchen, dressing room, study, balconies, and staircase.
