Definition of Carpet Area under RERA 2016
There is no one technique for calculating the size of a property, however there are three options. The carpet area (RERA carpet area), the built-up area, and the super built-up area are the three types. Developers and builders have seen several fraud and deception incidents as a result of 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 might be confusing, so let’s look at what RERA carpet area means, how to calculate RERA carpet area, 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 enough information regarding the title to the land, the nature of the development, the developer’s creditworthiness, project price, and so on. Previously, promoters charged exorbitant rates for flats/shops based on unregulated lodging on the flats. The lack of standardization and consistency were important problems impeding the real estate sector’s development, and as a result, innocent clients’ trust was jeopardized. 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 useable floor space of the unit plus the internal walls, except the size of exterior walls, services shafts, exclusive balcony or verandah area, and exclusive open terrace. 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 (increase or reduction) while the project is under construction. 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.
In general, a carpet area refers to a space where a carpet can be installed. In technical terms, it is an apartment’s net useable space, excluding parts enclosed by exterior walls, areas beneath service shafts, exclusive balcony or verandah areas, and exclusive open terraces.
Is there any Difference Between Carpet Area and RERA Carpet Area?
The sole variation between RERA carpet area definition and carpet area definition is the thickness of the interior walls. The thickness of the interior walls is also considered in the RERA Carpet Area. 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 is 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 increased the price of an apartment. Because homebuyers did not obtain what they were promised, there were incidences 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, built-up, and common areas such as lobbies, elevators, and stairwells.
Super built-up area is calculated as follows: Built-up area + shared areas.
The area of a building measured from the perimeter wall surfaces on the outside. It takes into account the carpet area as well as the wall thickness. Other apartment spaces include the dry balcony, patio, flower gardens, and so on.
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 RERA Carpet Area?
Because the carpet area is typically 70% of the built-up area, calculating the RERA carpet area or using a RERA carpet area calculator is simple. 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 go over the property for requirements.
- Be cautious since a builder may give a higher price depending on the RERA carpet area; thus, bargain after comparing the pricing of comparable properties.
Does RERA Helps 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 openness in the real estate industry and protect homebuyers’ interests. 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 1500 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 RERA carpet area would be INR 48,00,000, implying that a person will lose INR 12 lakh because 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, one must be cautious to ensure that the region is sufficiently 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 submit an application 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, he shall be fined 5% of the project’s estimated cost under Section 61 of 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 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 saleable area?
The super built-up area of an apartment with useable space is referred to as the saleable area.
- What happens if a builder is not providing their customer the promised carpet area?
If a builder fails to provide promised carpet or quote 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.