In a good news for real estate buyers, an affidavit filed by the Centre has clarified that real estate developers will no longer be able to sell flats or commercial units on the basis of ‘built-up’ or ‘super built-up’ areas.
For the uninitiated, the carpet area of the property is the actual usable area while built-up area includes the carpet, walled and dry balcony areas.
Super built-up, which is most profitable and preferred option for developers, adds the area of the corridor, lobby, lift etc on top of built-up area.
The clarification came to light after an affidavit citing provisions under the Real Estate (Regulation and Control) Act was presented in an ongoing case in the Bombay High Court, reported The Asian Age.
Developers, who were earlier making huge profits by selling common areas of residential and commercial premises, will face a tough time going forward as RERA stipulates that properties can only be sold on the basis of the unit’s carpet area.
The affidavit, filed by Sailesh Jogani from the Ministry of Housing and Urban Affairs, states that several builders followed different practices of selling properties on the basis of ‘built-up’ and ‘super built-up’ areas, which are non-standardised format.
Since the act is intended to standardise practises in the real estate sector, section 2 (k) of RERA defines the carpet area and makes it the de-facto format for real estate sales.
Under RERA, the promoters of ongoing projects also need to declare the carpet area even if the flats were earlier sold on the basis of other formats.
“Previously, when someone booked a flat of 1,000 sq.ft he would get an apartment of 600 sq.ft only. However, under RERA the developer or builder will be required to sell the flat as per the carpet area only,” advocate Tanvir Nizam told the daily.
While the use of carpet area for the purpose of selling may lead to an artificial increase in the ‘per sq.ft’ rate, consumers are likely to benefit as they will know exactly how much usable area they are getting for their money.View Realtime Updates