Whenever you set out to buy a property, one of the things that assume a lot of importance has to be the net area. The overall area will govern the property tax you will pay, the stamp duty you will pay, the property price you will pay, and so on.
So, how exactly do you define the area? There is not one method, but three ways. These are called carpet area, built-up area, and super built-up area. Owing to the different methods, the developers and builders had several fraud and cheating cases filed against them as there was a provision to dupe the buyers.
Buyers often complained that they got less area than what was promised. In order to curb such issues, the Real Estate Regulation And Development Act 2016 added a provision that stated that builders needed to quote the price based on the RERA carpet area. The super built-up area cannot be considered for quoting the price.
So, here we are going to shed light on the meaning of RERA carpet area, the ways to calculate it, and the difference between the other area terms as well. These details will help you know more about the different aspects and thereby know how much area you are entitled to get.
What Do You Mean By The RERA Carpet Area?
RERA or the Real Estate Regulatory Authority defines the carpet area as the net usable floor area that is present in the apartment. This will add the internal walls too. It doesn’t include the external walls, the exclusive balcony if any, or the veranda and exclusive open terraces and so on. The service shafts too are not a part of the carpet area.
Whenever any seller or builder is looking to sell a building, they need to quote the RERA carpet area specifically and not any other type of area.
If the carpet area is different from what was promised, home buyers are entitled to get a refund. The builder will need to refund the extra amount along with the rate of interest should there be a decrease in the carpet area when offering the flat.
It is also important that the amount be refunded back within 45 days. If the offered area is more than what was promised, the buyer will need to pay the excess amount but there is an upper limit that is charged as it is capped at 3%.
The Benefits Of The RERA Carpet Area
After the RERA carpet area was released, here are the different benefits that were felt far and wide.
- The real estate market became more transparent. There was a clear definition of what area needs to be promised and offered
- It helped in building trust levels and also boosted the confidence levels
- It helped in introducing the right trade and business standards as it brought in uniform grading
- If any variation occurs, adjustment has to be made. This is a great way to eliminate any unwanted fraud
- The sale price has to be compulsorily based on the RERA carpet area. This eliminates the chances of variations and unscrupulous means
So, these are the different benefits that one can enjoy owing to the presence of this new de facto standard. This will be valid as far as buying and selling homes are concerned.
The Different Area Measurement Tools
The RERA carpet area and the carpet area are different too.
When we talk of the RERA carpet area, it will be inclusive of the thickness of the internal walls. The carpet area doesn’t include this thickness. So, mostly there will be a difference of approximately 5%. The RERA carpet area is 5% more than the carpet area.
For example, if a promoter tells you the carpet area of an apartment is 1000 square feet, this means that the RERA carpet area will be 1050 square feet approx. The sale price is always checked on the basis of the RERA carpet area.
Before these terms came into action, other terms that were used are the built-up and the super built-up area. Both these terms were higher than RERA carpet and even carpet areas.
This area is measured using the external perimeter wall surfaces. So, it will include the carpet area, the wall thickness, and other perimeter areas. This include flower beds, dry balconies, terraces and more.
Built-up area equals the carpet area along with the area of the walls
The super built-up area
This is the area that is the saleable area. This will include the lift, balconies, stairs, terrace area, carpet area, garden area, gym area, pool area, and more. So, the super built-up area will be the carpet area plus all the common areas.
Thankfully ever since the RERA carpet areas were introduced, home sellers could no longer carry out fraud. This was because they had to give what they were promising.
How To Calculate The RERA Carpet Area?
If you want to calculate the RERA carpet area, you need to know that the process is very easy.
If you know the built-up area of a property, the carpet area is 70% of the built area approximately. The RERA would include the wall thickness with the carpet area. So, this will give you an idea of what the RERA carpet area is going to be like.
Here are some of the important tips that you need to pay heed to. This will help you when you are looking to calculate the RERA carpet area
- You can always seek the help of a private assessor who will help you ascertain the RERA carpet area. This allows you to tally if you have got what you were promised
- You can always ask the assessors to check the specifications if you are filing for a home loan. This helps you be sure that you are stating the specifics well
- You have to always be on an alert because sometimes builders may end up quoting higher based on the RERA carpet area. So, learn to better your negotiation skills.
The Maharashtra RERA asked all the promoters present in the state to give complete details about the houses. They had to tell about the flats that have been booked, and the ones that are under construction. The information also needs to be presented in a specific format. They need to enter details like the number of floors, the shops, the total carpet area. Additonal details are the flats that are sold, the ones that are booked, the registration details, and more.
The consolidated information helps in getting a clear picture of the current real estate scenario. Buying a property is no easy task and it is always advised to be sure that you know what you are buying. Knowing the details of the RERA carpet area helps you come to better negotiation and thereby will give you the right return for your money.
Are the RERA carpet and carpet area the same thing?
No, there is a difference between the two. The carpet area doesn’t include the thickness of the walls but the RERA carpet will be inclusive of the inner walls present in an apartment. Approximately, the RERA carpet area is 5% more than the carpet area.
Does the RERA carpet area cover the common spaces?
No, it is only the super built-up area that covers the common spaces. No other measurement unit covers the common space areas
What happens if the builder doesn’t give the carpet area they had promised?
The builder then needs to give the refund of the extra amount along with the annual rate of interest that will be charged. In some cases, if the builder is found to be using unscrupulous and fraudulent means, as per section 61 of the RERA Act 2016, the builder may have to pay 5% of the cost of the project as a fine. So, it is better to always be safe than sorry. You can check out details for Maharashtra RERA website.
What to do if I need to complain against the builder?
You can reach out to RERA with your complaints. You can choose to use the RERA website or the app. Those who want to complain in person can also head to the RERA office. After the complaint is registered, you will get the solution in less than 60 days.
Can you buy non-RERA registered property?
We strongly recommend not doing so. When you choose to buy a property that is not RERA registered, you will not be allowed to market your property. So, resale will be a very tedious job. Also, your builder can cheat you and deny giving you any possession. If you end up in a dispute, you are going to face severe consequences as you may not have the backing of the law to prove anything.
Has RERA helped in building the right standards?
Yes, RERA has greatly regulated the real estate industry and given a standard area measurement tool that has simplified things immensely. It has cut down the chances of fraud significantly.