There is no one such method used to calculate the area of the property, but there are three ways. They are the Carpet area (RERA carpet area), Built-up area and super built-up area. Due to multiple methods, developers and builders had many fraud cases and cheating cases. The complaints were that homebuyers got less apartment area than promised. To curb this problem Real Estate (Regulation and Development) Act, 2016 (RERA) came with a provision, which states that it is mandatory for a builder to quote the price based on the RERA carpet area and not based on super built-up area. Once you decide to buy an apartment, there can be a lot of confusion regarding these terms, so let’s understand RERA carpet area meaning, RERA carpet area calculator, and the difference between super built-up area and built-up area.
What is RERA Carpet Area?
Carpet area as per RERA-Real Estate Regulatory Authority-is the net usable floor area of an apartment plus the internal walls, which excludes size of external walls, services shafts, exclusive balcony or verandah area and exclusive open terrace. Here exclusive means that the site of the open terrace is intended for the exclusive use of the allottee. All the developers and builders must sell the property by quoting the RERA carpet area and not any other area type.
If it is an under-construction project and while developing property there is a difference between the mentioned carpet area (increase or decrease), homebuyers will get a refund. The builder will refund the excess amount with annual interest if there is a decrease. Also, the amount has to be refunded within 45 days. If the area increases, a homebuyer has to pay the excess amount; however, an upper limit of the growth has been capped at 3% by RERA.
Impact of RERA Carpet Area
The introduction of RERA carpet area has resulted in:-
-
Transparency of the real estate market
-
Trade and business practices are standardised
-
It helps build trust and confidence
-
It is mandatory to mention RERA carpet area in brochures and marketing materials
-
Sale price should be based on RERA carpet area
-
Any variance will result in adjustment of consideration
What is Carpet Area?
In general, a term carpet area is where a carpet can be laid. In technical terms, it is a net usable area of an apartment, which excludes areas covered by external walls, areas under service shafts, exclusive balcony or verandah area and exclusive open terrace.
Importance of RERA Carpet Area
The RERA Carpet area holds much significance in real estate transactions since it ensures the fundamental needs are catered to. Here’s why the RERA Carpet area is important-
Transparency on the Usable Area
The RERA carpet area provides prospective homeowners with total transparency on the enclosed space which can be utilised for interiors or furnishing the area. RERA mandated developers to base pricing on the RERA Carpet area, rather than super built up area, to keep expectations realistic.
Safeguarding Buyer’s Interest
It is common for under-construction properties to go through substantial area changes once the final construction is completed. To safeguard buyers from taking a hit, RERA regulates discrepancies between committed and final carpet area. In case of discrepancies, the builder is obligated to provide a proportional refund or adjustment of price difference within 45 days of handing over possession.
What is the Usable Carpet Area?
A usable area is a net area available to homebuyers or tenants - that doesn’t include all walls and ledge walls. This area comprises balconies and utility areas. This is a key area for the property evaluation. Though the RERA carpet provides the area concurred according to the legal agreement with the developer, the usable area provides a complete understanding related to the carpet area available to the user.
What is the Difference Between the RERA Carpet and Carpet Area?
Now we know RERA carpet area definition and carpet area definition; the only difference between the two is the thickness of internal walls. In RERA Carpet Area the thickness of the internal walls is also included. So, approximately there is a difference of 5% between both the carpet areas. The RERA Carpet area usually is 5% more than the carpet area. For example, the carpet area of an apartment is 800 square feet; then its RERA carpet area would be 840 square feet.
Difference Between Saleable Area and RERA Carpet Area
The carpet area with the loading factor is the saleable area. The loading is performed on the RERA carpet area. The developers use a saleable area for the allotted total cost calculation of a particular unit. To simplify it more, the money invested by the developer is for the entire project, which comprises common areas, clubhouses, service and more. But the revenue the developer receives is only on the sold unit. Therefore, when someone sells the unit based on a carpet area, the developer determines the costs based on the saleable area.
Read in detail: What is carpet area
Let’s now Understand the Built-Up Area and Super Built-Up Area
Before RERA carpet came into existence, builders quoted prices according to the built-up area or super built-up area, which raised the cost of an apartment. This led to fraud and cheating cases because homebuyers did not get what was promised. Built-up and super built-up areas are always more than RERA carpet areas or even carpet areas.
Built-up area: It is an area of a premise measured from the external perimeter wall surfaces. It includes the carpet area and the wall thickness. It also contains other apartment areas such as the dry balcony, terrace, flower beds, etc.
The formula used to calculate the built-up area:
Built-up area = Carpet area + area of walls
Super built-up area: It is an area of premises which is a saleable area. This area includes carpet area, terrace area, walls, lift, stairs, balconies. Also, some builders have a garden area, pool area or clubhouse area. The loading factor on the carpet area is used to measure the super built-up area.
RERA suggests that a super built-up area consists of carpet, built-up, and common areas like stairs, lift, lobbies, etc.
The formula for super built-up area is:
Super built-up area = Built-up area + common areas
What is the difference between the Carpet Area, Built-Up Area and Super Built-Up Area
Now that you have understood the meaning of the carpet area, built-up area and super built-up area. The major difference between them is the area they cover. While the Carpet Area is the property’s actual unstable area, the Built-Up Area comprises the area covered by the walls and other structures. The Super Built-Up Area comprises the Built-Up Area and the common areas. The property cost is always calculated considering the Super Built-up Area. Thus, it is important to understand the difference between different area types to calculate the actual property cost.
How to Calculate the RERA Carpet Area?
It is easy to calculate the RERA carpet area or RERA carpet area calculator because the carpet area is 70% of the built-up area in most cases. For example, if the built area of a property is 2000 sq ft, then its carpet area would be 1400 sq ft.
Here are a few tips which one should follow while calculating the carpet area:-
-
Take help from the private technical assessor.
-
If you are taking a home loan, ask legal and technical assessors of a property to check for specifications.
-
Be vigilant because a builder might quote a higher price based on the RERA carpet area, So, negotiate after comparing other property prices.
Steps on Measuring Carpet Area
Here is the step-by-step guide on measuring carpet area:
-
First, measure the length and breadth of each room. You can use a laser measure to calculate the area.
-
Now, multiply these measurements to find out the area of each room.
-
Measure the dimensions of your apartment in a way to determine the thickness of the internal walls.
-
Make a total footprint of all the internal walls.
-
Make a total of the areas of all rooms with the footprint of all the internal walls to calculate the total carpet area.
-
Keep in mind not to include balconies, external walls and terraces.
Different Terms Used by Real Estate Developers
Following are the terms used by real estate developers while defining the area of the flat. However, one must understand the actual inclusion of the RERA carpet area only covers the kitchen, living room, bedroom, inner walls, and bathroom. But there are times when builders do use different terms, and buyers may get confused.
-
Common area: These are common to use for all the residents. These include swimming pools, footpaths, lifts, gyms, and staircases. This area is not a part of the RERA carpet area.
-
Exclusive verandah & balcony area: Permanently affixed area to a flat. Even though this area is attached to the flat, it is not a part of the RERA carpet area.
-
Exclusive open terrace area: This open terrace area is also attached to the flat or the apartment but is not a part of the RERA carpet area.
-
Loading factor: The difference between the carpet and the super-built-up area. Suppose the loading factor is around 1:20, indicating that the builder has added 20% of the area to the carpet area.
-
Per square foot rate: Normally, the per square foot rate quoted by the developers on residential projects is the rate of the saleable area or the super built-up area. However, the new regulation states that the quotes must be given only to the carpet area. Therefore, one must ask their developer about the ratio of the carpet area to the super built-up area. The higher the ratio is, the more space inside the flat.
Mistakes You Need to Avoid While Measuring Carpet Area
Needless to say that a wrong measurement can certainly lead to discrepancies in pricing of the project. Thus it is very important to ensure that all the measurements are properly taken. This is something that’s non-negotiable. Furthermore, if a property is advertised with incorrect measurements, it can certainly lead to not just legal issues but also loss of customer trust. Here are a few mistakes that you can easily avoid while taking measurements for carpet area.
-
Not measuring wall thickness properly: It is very important to measure from wall-to-wall to ensure that the end customer gets the right measurements. After all, they are paying for it with their hard earned money.
-
Never skip small areas: It is very important to note that spaces like storerooms or utility areas should be measured too. Forgetting to measure them may lead to certain discrepancies that may further invite legal trouble.
-
Not measuring properly: To make sure that the measurements are error-free, it is important that you double-check every measurement. Plus, remember to take measurements at 90 degrees from the surface.
-
Not measuring doorways and alcoves: Drafting a plan will help you ensure that you don’t miss any area. Remember, that certain irregularities like doorways and alcoves may affect the type and size of carpet area needed.
How RERA is Helping Save Money?
The aim of the RERA is to bring transparency in the real estate sector and safeguard the interests of homebuyers. All the projects are regulated under RERA, meaning a builder has to quote money per the RERA carpet area. The regulator is helping people save money; let's understand with an example:-
In May 2015, a builder quoted a price of Rs 60,00,000 for a 3 BHK apartment. The cost was quoted by considering the super built area of a flat, 1500 sq ft at a rate of Rs 4000 per sq feet.
The RERA guidelines are to be followed; the price is quoted as per the RERA carpet area. In this case, the RERA carpet area is 1200 sq ft, including an area covered by the external walls, areas under service shafts, an exclusive balcony or verandah area, and an entire open terrace area. Also, the size of the inner partition of walls. As per the RERA carpet area, the price of the 3-BHK apartment will be Rs 48,00,000, meaning a person lost Rs 12 lakh because the price was quoted based on the super built area.
Also, there have been cases where a builder quotes a higher super built-up area- which is non-existent- on which a person has to pay extra property tax throughout the life. While buying a property, one must be vigilant to know if the area is adequately covered.
What to do in Case of Injustice
You can reach out to RERA if you have any complaints against a property builder or a developer. You will have to file a complaint against a promoter/ developer/ or a builder on a state RERA website or give an application at the RERA office. Once the complaint is registered, a complaint will be disposed of in 60 days.
Penalty against Developers or Builders for False Information
If a builder or a developer provides incorrect information regarding the area of an apartment or the cost of a flat, it attracts a fine. Under Section 61 of the RERA Act 2016, if a developer gives any incorrect information or other such infringement, he will be liable to pay a penalty of 5% of the estimate of the project.
What if You Do Not Buy RERA Registered Project?
If you do not buy a property which is not RERA registered then you can land yourself into trouble. Your builder can deny you from giving you a possession if he/she faces bankruptcy in life. Also, a promoter will not be allowed to market the property if it is not RERA registered.
Read more on: Implications of Not Buying RERA registered project
RERA Carpet Area - In a Nutshell
A homebuyer needs to understand the difference between the RERA carpet area, carpet area, built-up area and super built area. You can negotiate better and ask for the appropriate amount when you know the difference. Not only that, but it also helps save a big chunk of money. So, it's always good to research before you buy a property.
.png)
