Buying a home has always been an excruciating process not to mention, it is not uncommon to note that the technical jargon used by realtors leaves a common man in absolute awe. All in all, three approaches are employed while calculating the area of the property – carpet area, built-up area and super built-up area. These trifurcations more often than not have led to dissociation in what the buyers pay and what they receive. The working of technical rules to the estate game are lesser-known to the majority of the buyers and gives leverage to the developers. Huge profits were acquired not just by the unregistered developers but also by famed builders while tricking and landing an innocent home buyer in jeopardy. Hence, it is no surprise that misleading practices that were undertaken by sellers sooner or later instigated the buyers to tug the matter in courts.
However, it was the thoughtful Real Estate (Regulations and Development) Act, 2016 (RERA), that propelled the present-day developers to disclose the carpet area to the buyers and position the quotations based on carpet area and not the super built-up area. The Carpet area has been defined under Section 2(k) of the Real Estate (Regulation and Development) Act, 2016 as the “net usable area of an apartment”. This area includes the area covered by the internal partition walls (walls or independent columns constructed or provided within the apartment). But it excludes the area covered by the external walls (constructed or provided on the external face) areas under service shafts, exclusive balcony or varandah area and exclusive open terrace area. This provision allowed the buyer to understand the quantifiable measurements of the house they were expected to exchange their valuable money for. Section 61 of the RERA states that for providing false information and other such contraventions, the promoter may have to pay a penalty of 5% of the estimated cost of the real estate project.
In a recent development, the Haryana Real Estate Regulatory Authority (HRERA) has smoothened the wrinkle by directing the developers to sell the apartments only based on carpet area. These recent guidelines have come into play after much rue and complaints of buyers being charged on the super area and not the carpet area.
“The definition of super area as provided in various builder buyer agreement is vague and there are wide variations in the definitions. The Property in real estate projects is not properly described by way of mentioning super area without giving details and breakup of the components included in the super area” HRERA Chairman Dr. KK Khandelwal said. Hence, all the registration of the conveyance deeds will be done based on the carpet area. The said guidelines apply uniformly to all real estate projects whether registered/ registrable or exempted from registration.
Dr. Khandelwal also went onto mention that “The practice of real estate on super area basis is misleading, ambiguous, opaque and gives rise to confusion and complexities and at times results in avoidable litigation. To ensure sale of property or of real estate projects is done in an efficient and transparent manner and to protect the interest of consumers, HRERA, Gurugram has issued regulations for sale of apartment or building in any real estate projects on carpet area basis”.
It is noteworthy to mention that the Hon’ble Supreme Court Bench presided by J. A.M. Khanwilker, J. Dinesh Maheshwari and J. Sanjiv Khanna in the case of Jaypee Kensington Boulevard Apartments Welfare Association & Ors v. NBCC (India) Ltd opined that homebuyers cannot be charged an extra amount towards the arbitrary increase in the name of ‘Super Built-Up Area’. A real estate agent would be deemed to be indulging in malpractices if they are noticed to be selling in the super area. Moreover, their registration as a real estate agent under the Act may be terminated or criminal actions may be bought against him/her under the act.
The buffer created by HRERA will not transfigure the price consideration for the buyer, it is only intended to rescue them from the agent’s misconduct and fraudulent wrongdoings. This bold step will blow the gaff around the super built-up area.
The move will certainly empower the buyer to take a rational decision based on accurate information of the apartment. Moreover, the tax liability process too would be simplified for the home buyers having known the property components beforehand. Finally, the long journey of developers or unlawful promoters taking the prospective buyer for a ride came to a long end.
In a recent development, the Haryana Real Estate Regulatory Authority (HRERA) has smoothened the wrinkle by directing the developers to sell the apartments only based on carpet area. These recent guidelines have come into play after several complaints of buyers being charged on the super area and not the carpet area.