Introduction
In the real estate industry, there has been a long-standing issue of misleading homebuyers by builders and developers. They often market properties based on the super built-up area or built-up area, leaving out the crucial information about the actual usable area, known as the carpet area. This practice has led to dissatisfaction among homeowners, who feel cheated when they realize that the area they purchased is much smaller than what they were led to believe.
The Real Estate Regulatory Authority (RERA) took note of these fraudulent activities and made it mandatory for builders and developers to disclose the carpet area in all real estate dealings. This move has brought about significant changes in the industry and has empowered homebuyers with essential information to make informed decisions.
What is a Carpet Area and how is it different from a super built up area?
The carpet area is the usable area of a house, including kitchens, bathrooms, internal walls, and excluding verandas and terraces. On the other hand, the super built-up area includes the carpet area, the built-up area, and a portion of the common area on the apartment floor, such as stairways, landings, and lobbies.
Typically, the carpet area constitutes around 70% of the super built-up area. This means that homebuyers were previously paying 30% extra for the area that they couldn’t actually utilize. This practice was a common strategy used by builders to create an illusion of larger homes while maximizing their profits.
Carpet area under RERA
RERA has made it clear that the carpet area of a house is the entire area from inside the external walls, excluding terraces and balconies. This rule ensures that homebuyers have a clear understanding of the actual usable area they are purchasing.
Mandatory disclosure of Carpet area and its impact
The mandatory disclosure of carpet area as directed by RERA has had a significant impact on the real estate market. Builders and developers can no longer manipulate the area calculations to their advantage. They are now forced to focus on providing more carpet area to maximize the value for homebuyers.
With detailed knowledge about the carpet area, homebuyers can now compare rates per square foot based on the actual usable area and question higher prices. This transparency has brought about a much-needed change in the industry and has empowered homebuyers to make more informed choices.
How it will help home buyers
The new ruling by RERA has immensely benefited homebuyers. They now have a better understanding of the differences between carpet area, built-up area, and super built-up area. Homebuyers can physically measure the carpet area to ensure they are getting what they paid for, eliminating any chances of being cheated by builders or developers.
The modifications in price in case of change of the Carpet Area
RERA’s directive goes beyond just making the mention of the carpet area mandatory. It also addresses the issue of changes in the carpet area at the time of handover. If the actual carpet area is reduced, the developer must refund the difference to the buyer. Similarly, if the carpet area increases, the buyer needs to pay the additional amount, with a cap of 3%.
This rule ensures that buyers pay for the actual area they receive and prevents builders from making any arbitrary changes without the buyer’s knowledge or consent.
Carpet area, super built-up area, and real estate scams
Real estate scams were rampant in the industry before the regulations of RERA came into effect. Builders would charge homebuyers based on the super built-up area and promise larger homes, only to deliver smaller flats. This led to numerous disputes and legal battles between developers and homebuyers.
However, RERA has put an end to such scams by enforcing transparency and empowering homebuyers with detailed knowledge about the carpet area. Buyers are now more cautious and thoroughly scrutinize agreements before making any commitments.
Carpet area in the post-Covid-19 world
In the post-Covid-19 era, there is a growing demand for larger homes. Homebuyers are more aware and cautious, and they understand that the carpet area is 30% less than the super built-up area. Real estate developers have also become wary and are redesigning homes to provide more carpet area, taking into account the changing needs and preferences of buyers.
Maharashtra RERA directs promoters to disclose stock details, carpet area
The Maharashtra state RERA has directed all real estate developers and promoters to provide detailed information about their projects, including the number of houses, shops, carpet area, and inventory status. This move aims to promote transparency and help buyers make more informed decisions. It also helps RERA in detecting and preventing unauthorized construction activities.
Frequently Asked Questions (FAQ’s)
Here are some frequently asked questions related to the carpet area and its implications:
Q: What area should be considered for calculating the registration of my apartment?
A: The RERA rules specify that the carpet area should be considered for calculating the registration of an apartment. If your documents mention the built-up area instead, it is advisable to find out the carpet area to avoid unnecessary registration charges.
Q: I am buying an apartment in Akola, Maharashtra. Can I register myself with RERA for better consumer protection?
A: Yes, you can register yourself with the Maharashtra unit of RERA for better consumer protection. Visit the website ‘maharera.mahaonline.gov.in’ and register as a citizen.
Q: Do I need to pay the increased amount if the promised carpet area of my flat increases at the time of handover?
A: If the carpet area of your flat increases at the time of handover, you will need to pay the increased amount. However, the increase cannot exceed 3% of the originally agreed area. The developer must inform you in advance, and the increase must be calculated at the same rate per square foot as agreed initially.
Q: Can the developer of my apartment charge me for the common facilities in the colony?
A: Developers can charge for common facilities such as swimming pools, gymnasiums, elevators, and security. However, there should not be any charges for the common hall, as housing societies generate funds by renting out the hall for events. In most cases, you will need to pay for a covered parking space, and security costs are usually added to the monthly maintenance bills.
Q: Do I need to pay any project escalation costs before the handover of my apartment?
A: No, project escalation costs should not be charged unless it was mentioned in the contract at the time of booking your apartment. The present RERA rulings do not permit any increase in the rate per square foot. Customers should not be made to pay for delayed projects unless there are specific clauses allowing for cost escalation.
By addressing these frequently asked questions, we aim to provide clarity and support to homebuyers who may have concerns or doubts related to the carpet area and its impact on their real estate transactions.
Conclusion
The introduction of the carpet area and its mandatory disclosure by RERA has brought about a positive change in the real estate industry. Homebuyers are now more empowered with accurate and transparent information, enabling them to make informed decisions. Builders and developers are also adapting to this new norm, focusing on maximizing the usable carpet area in their projects. Overall, this shift has improved consumer protection and instilled confidence in the real estate market.
If you’re considering purchasing a property, make sure to verify the carpet area and understand the implications it can have on the price and your overall satisfaction as a homeowner. Take advantage of the transparency provided by RERA and ensure a smooth and fair real estate experience.
Remember, knowledge is the key to making wise decisions. Be an informed buyer and never hesitate to seek professional advice when needed.
Now that you have a better understanding of the carpet area and its significance, explore your options, and make the right choice for your dream home!