In this post we’ll read about the regulation released by Haryana Real Estate Regulatory Authority (HARERA) on sale of an apartment on the basis of super area is misleading and will be treated fraudulent or unfair practice by the developer

Background Facts:

The Haryana Real Estate Regulatory Authority (HARERA) issued regulations on Tuesday, regarding sale of apartment on carpet area basis.

The regulation says that sale of an apartment on the basis of super area is misleading and will be treated fraudulent or unfair practice by the developer. Carpet area is the area that is used by the owner of the house whereas the built-up area includes the areas covered by walls or exclusive balconies and super built-up area casts the net wider to include common areas as well.

The definition of super area as provided in various builder-buyer agreements is generally vague and is not properly described by way of mentioning super area without specifically giving details and breakup of the components included in the super area. It is misleading practice and gives rise to confusion and at times may result in litigation.

Therefore, HARERA has clearly defined carpet area. As per the release “The definition of carpet area as provided under section 2(k) of the Act means the net usable floor area,” While externals wall, service shafts, balcony, verandah and open terrace have to be excluded from the definition. However, the internal partition walls of the apartment are not excluded as they form a part of the integral structure, that is, carpet area. All walls which are constructed or provided on the external face of an apartment shall be regarded as “external wall”. All walls or independent columns constructed or provided within an apartment shall be regarded as “internal partition wall”.

The member of HARERA(Gurugram), Sameer Kumar briefed that any agreement for sale on any other basis except on carpet area shall amount to indulgence in unfair trade practice/fraudulent practice by the promoter and shall attract appropriate action as per the relevant provisions of the Act.

The definition of carpet area now been made transparent. Pradeep Aggarwal, founder and chairman, Signature Global, said that they are working in the affordable housing segment in Haryana for six years and selling projects on carpet area as specified in the policy for affordable housing and welcome the step taken by the HRERA. In the current scenario, when the market is becoming end-user driven, it is important to be transparent in dealings.

 The Central Park CMD, Amarjit Bakshi said that the super built-up area owing to lack of defined guidelines was calculated differently by different developers, which caused a lot of confusion among customers. However, since there is only one method of measuring and reporting carpet area, the customer will know precisely what he or she is purchasing and will be able to compare similar projects offered by different developers.

The registration of the conveyance deeds will be done on the basis of carpet area. While in case of existing projects, the developer has to clearly disclose the components of the super built up area.

Opinion:

The steps taken by the HARERA while regulating sale of an apartment on the basis of super area is misleading and treating it a fraudulent or unfair practice by the developer is revolutionary and bold steps taken by the authority. The carpet area has always been a topic of debate and this step will bring a lot of transparency.

More on 99888-17966.