News: Sale only on basis of carpet area, HRera issues regulations-28-04-2021
Sale only on basis of carpet area, HRera issues regulations
Gurgaon: Calling the practice of selling real estate projects on the basis of super area misleading, ambiguous, opaque and confusing, the Haryana Real Estate Regulatory Authority (HRERA) has said sale on the basis of super area shall be treated as fraudulent and an unfair trade practice.
HRERA chairman KK Khandelwal said conveyance deeds shall be executed only on the basis of carpet area. “Penal proceedings will be initiated against the promoter or the real estate agent for violating the instructions,” he said.
The real estate authority on Tuesday issued regulations for sale of apartments or buildings in any real estate project on the basis of carpet area. “The definition of super area as provided in various builder-buyer agreements 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 specifically giving details and breakup of the components included in the super area,” Khandelwal said.
Before the Real Estate (Regulation and Development) Act, 2016 came into existence, there was a lack of a legal description for the term “carpet area”, Khandelwal added. “In the Act, the term carpet area has been specifically and distinctly defined as net usable floor area. External wall service shafts, balcony, verandah and open terrace have been excluded from the definition of carpet area,” he said.
The authority also clarified that in case of ongoing projects where a promoter has allotted units on the basis of super area prior to the Act coming into effect, all components constituting super area would have to be disclosed. “This is to prevent any fraud with the allottee when the unit is sold on a super area basis. In case the conveyance deed of the units has not been executed, the promoter shall also indicate carpet area in addition to the super area and its details/constituents,” said another official.
Khandelwal further said that the total cost will remain unaltered even if the unit is to be registered on carpet area basis. “It will not alter the sale consideration. It is for the purpose of disclosure and exact description of an apartment,” he said.
