There are three different ways to determine the property’s area; there isn’t just one. They are the built-up area, super built-up area, and the carpet area (RERA carpet area). Developers and builders experienced a large number of fraud and cheating cases as a result of various methods. There were grievances that apartment areas were not as large as promised to homebuyers. The Real Estate (Regulation and Development) Act of 2016 (RERA) introduced a provision to address this issue, requiring builders to quote prices based on RERA carpet area rather than super built-up area. There may be some confusion about these terms once you decide to purchase an apartment, so let’s learn what RERA carpet area means, how to calculate RERA carpet area, and the distinction between super built-up area and built-up area.
What is the RERA carpet area?
According to the Real Estate Regulatory Authority (RERA), the carpet area is the net usable floor area of an apartment plus the internal walls, excluding the size of the external walls, service shafts, exclusive balconies or verandah areas, and exclusive open terraces. Exclusive here refers to the allottee’s intended exclusive use of the open terrace site. Developers and builders must all quote the RERA carpet area when selling a property, not any other type of area.
Homebuyers will receive a refund if the project is still under construction and the carpet area changes (increases or decreases) while the property is being developed. If there is a reduction, the builder will refund the surplus money along with yearly interest. Additionally, the money must be returned within 45 days. A buyer of a home must pay the excess amount if the area increases, but RERA has set a cap on the growth at 3%.
Impact of RERA Carpet Area
The introduction of RERA carpet area has resulted in:-
- Market transparency for real estate
- Business and trade procedures are standardized.
- It promotes trust and self-assurance.
- In brochures and marketing materials, RERA carpet area must be mentioned.
- Sale prices ought to take into account RERA carpet area.
- Any difference will cause the consideration to be adjusted.
What is the Carpet Area?
Areas that can be carpeted are generally referred to as carpet areas. Technically speaking, it is the portion of an apartment that is usable but not covered by external walls, beneath service shafts, on a private balcony or verandah, or on a private open terrace.
What is the Usable Carpet Area?
A net area that is accessible to homebuyers or tenants is called a usable area; this area excludes all walls and ledge walls. There are utility spaces and balconies here. This is a crucial area for the assessment of the property. The usable area offers a complete understanding of the carpet area available to the user even though the RERA carpet offers the area agreed upon in accordance with the legal agreement with the developer.
What is the Difference Between the RERA Carpet and Carpet Area?
Now that we are familiar with both the RERA and carpet area definitions, we can see that the only distinction between them is the thickness of the interior walls. The thickness of the interior walls is also taken into account in RERA Carpet Area. Therefore, there is roughly a 5% difference between the two carpeted areas. Typically, the RERA Carpet area is 5% bigger than the carpet area. For instance, if an apartment has 800 square feet of carpet space, its RERA carpet space would be 840 square feet.
| Also Read: How To Search Project On Rera Website? |
Difference Between Saleable Area and RERA Carpet Area
The saleable carpet area is the one with the loading factor. The RERA carpet area is where the loading is done. The developers calculate the allotted total cost of a specific unit using a saleable area. To further simplify things, the developer’s investment covers the entire project, including all common areas, clubhouses, services, and other things. However, the developer only receives money from the sold unit. Therefore, the developer calculates the costs based on the saleable area when someone sells the unit based on a carpet area.
Let’s now Understand the Built-Up Area and Super Built-Up Area
Prior to the implementation of RERA, builders would quote prices based on built-up or super built-up area, which drove up the price of an apartment. Due to the fact that homebuyers did not receive what was promised, fraud and cheating cases resulted. Super- and built-up areas are always more expensive than RERA- or even carpet-covered areas.
Built-up area: This refers to the space inside a building that is measured from its exterior perimeter walls. The carpet area and wall thickness are included. It also includes additional apartment spaces, including the terrace, flower beds, and dry balcony.
The formula used to calculate the built-up area:
Built-up area = Carpet area + area of walls
Super-built-up area: This refers to a sellable portion of a property. There are carpets, walls, terraces, elevators, stairs, and balconies in this area. A clubhouse, garden, or pool area is another feature that some builders have. The super built-up area is calculated using the loading factor on the carpet area.
According to RERA, a super built-up area consists of carpet, built-up, and communal spaces like lobbies, elevators, and stairs.
The formula for super built-up area is:
Super built-up area = Built-up area + common areas
How to Calculate the RERA Carpet Area ?
Since the carpet area typically makes up 70% of the built-up area, calculating the RERA carpet area or using an RERA carpet area calculator is simple. For instance, if a property has a built area of 2000 square feet, its carpet area would be 1400 square feet.
Here are a few tips which one should follow while calculating the carpet area:-
- Consult a private technical assessor for assistance.
- Ask legal and technical assessors of a property to check for specifications if you are taking out a home loan.
- Be cautious because a builder may offer a higher price based on the RERA carpet area; therefore, bargain after examining the costs of comparable properties.
Different Terms Used by Real Estate Developers
The terms used by real estate developers to describe the square footage of a flat are as follows. The reality is that the RERA carpet area only includes the kitchen, living room, bedroom, inner walls, and bathroom. However, there are instances when builders do use different terminology, which could confuse buyers.
- Common area: All of the residents can use these on a regular basis. These consist of stairways, elevators, gyms, and swimming pools. The RERA carpet area does not include this area.
- Exclusive verandah & balcony area: Area that is a flat’s permanent fixture. Although this area is connected to the apartment, it is not covered by the RERA.
- Exclusive open terrace area:Although it is a part of the apartment or flat, this open terrace area is not covered by the RERA.
- Loading factor: The distinction between the carpet and the heavily populated area. Assume the loading factor is somewhere around 1:10, which means the builder increased the carpet area by 20%.
- Per square foot rate: On residential projects, the price per square foot typically quoted by the developers is the price of the saleable area or the super built-up area. The quotes must only be given to the carpet area, according to the new regulation. As a result, one needs to inquire with their developer about the proportion of carpet to super-built-up space. The more space inside the apartment the higher the ratio.
How RERA is Helping Save Money?
The RERA’s objectives are to promote transparency in the real estate industry and protect consumers’ interests. Since RERA regulates all projects, a builder must provide a price quote based on the RERA carpet area. The regulator is assisting people in making financial savings; an illustration will help:
A builder provided a quote in May 2015 for Rs 60,00,000 for a three-bedroom apartment. The price was calculated using a flat’s super built area of 1500 square feet at a rate of Rs 4000 per square foot.
The price is quoted in accordance with the RERA carpet area, and the RERA rules must be adhered to. The RERA carpet area in this instance is 1200 sq ft, which includes a portion of the open terrace, a portion of the exclusive balcony or verandah, portions under service shafts, and areas covered by the exterior walls. Moreover, the dimensions of the interior wall partitions. A person lost Rs 12 lakh because the price was quoted based on the super built area because the price of the 3-BHK apartment will be Rs 48,00,000 according to the RERA carpet area.
Additionally, there have been instances where a builder quotes a higher super built-up area that is untrue and for which a person must continuously pay additional property tax. One needs to be cautious when purchasing a property to determine whether the area is sufficiently covered.
What to do in Case of Injustice
If you have any grievances against a builder or developer, you can get in touch with RERA. You must submit an application at the RERA office or file a complaint on a state RERA website against a promoter, developer, or builder. After a complaint is filed, it will be resolved within 60 days.
Penalty against Developers or Builders for False Information
A developer or builder will be fined if they give false information about the size of an apartment or the price of a flat. Developers who provide false information or commit other violations are subject to a fine equal to 5% of the project’s estimated cost under Section 61 of the RERA Act 2016.
What if You Do Not Buy RERA Registered Project?
You risk getting into trouble if you purchase a property that is not RERA registered. If your builder experiences bankruptcy in their lifetime, they may refuse to give you a possession. Additionally, if the property is not RERA registered, the promoter will not be permitted to market it.
Latest Information: RERA Carpet Area
MahaRERA (Maharashtra RERA) has requested that all developers in the state disclose all information pertaining to homes, plots, reserved apartments, and other buildings. The total number of floors, shops, carpet area, sold/booked/unsold inventory, and registration information should all be provided in a predetermined format.
Conclusion: RERA Carpet Area
The distinctions between the RERA carpet area, carpet area, built-up area, and super built area must be understood by a home buyer. When you are aware of the difference, you can bargain more effectively and demand the proper amount. Not only that, but it also contributes significantly to cost savings. Therefore, it’s wise to do some research before making a purchase.
FAQs
What distinguishes the RERA carpet area from regular carpet area?
The inner wall of a flat is not included in the carpet area, which is the only distinction between the RERA carpet area and the carpet area. The inner walls of the apartment make up the RERA carpet area.
How are RERA carpet areas determined?
You need to know the built area in order to calculate the RERA carpet area. Typically, 70% of the built-up area is made up of carpet.