The meaning of carpet area of a house has evolved into RERA carpet area, setting aside old practice of real estate developers of showcasing super built-up area to inflate the price of a property.
RERA has changed the definition of Carpet Area
The Real Estate Act has come as a boon to consumers of the property after it affected a new regulation making it mandatory for developers to compulsorily come clean on the hitherto nebulous definition concocted by the developers for making super gains on the transaction. Let us have a look at the definition of carpet area and its effect on home buyers and subsequent property prices.
The area of a property is usually calculated in different ways. There is carpet area, built-up area and super built-up area with different and often confusing connotations. It has always been a less than transparent phenomenon of a disconnect between what you pay and what you end up getting in the bargain. Consumer court cases are replete with cases of frauds against the builders in terms of the purchase of flats and the payment of the agreed price of the property. Everything points to the direction of cheating or malpractice in milder words.
The area of the flats that are finally delivered to the buyers was found to be of lesser dimension when pitted against the price the buyers had paid. Now, it has become mandatory for the builders to make the purchasers of property aware of the price of the flats based on the real carpet area as defined by RERA. It is no longer the super built-up area for calculating the area of the carpet area. It is now a RERA carpet area.
It is now compulsory for the developers of all projects to disclose the actual area of the apartments on sale based on carpet area so that no doubt remains in the process of a transaction. RERA Carpet area is the area within the four walls of a building that includes kitchen and washrooms. It has brought about a lot of clarity non-existent before.
What is RERA carpet area?
RERA Carpet area is the net area in the actual use of the owner of the property after the sale of a property. It is the space taken by a carpet when it is spread in that area. The built-up area includes the area of the walls that are inside and outside. Super built-up area includes many common spaces such as landings, staircase, lobbies, balconies, etc. which are to be used by all residents. So, RERA carpet area is the net usable floor area of a building that excludes internal and external walls, balcony or lobby or open terrace area.
How It Will Help Homebuyers?
Now the buyers will have accurate information on the actual area they are going to use and pay for, and it will empower the buyers to make an informed decision before deciding on the purchase. It would also ease the process of calculating tax liability of the purchasers. It will help them know with better clarity various tax components of the tax liability on the property they own.
Many promoters have got into the habit and malpractice of providing information based on the built-up area. It should have been carpet area which spells out the actual measurement of a flat. The reform, however, may escalate the prices of flats because now the builders will try to compensate for the presumptuous loss they might be making because the real area being sold will be slashed down with new calculations based on RERA carpet area.