HRERA: Sale of property only on basis of carpet area

Tribune News Service
Chandigarh, April 28

The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, has termed the sale of property on the basis of super area as a “fraudulent and unfair trade practice”, asserting that an apartment or a building would be sold only on the basis of carpet area.

KK Khandelwal, HRERA chairman, has told the media that the definition of super area as provided in various builder-buyer agreements was vague. “The sale of real estate on the basis of super area is misleading, ambiguous, opaque, and gives rise to confusion and complexities and, at times, results into avoidable litigation,” he said.

To ensure that a plot, an apartment or a building is sold in a transparent manner, the HRERA has made certain regulations. Khandelwal said that before the Real Estate (Regulation and Development) Act, 2016, came into existence, there was no legal description for the term “carpet area”. The Act provided a specific definition of carpet area.

The definition of carpet area as provided under Section 2(k) of the Act means the net usable floor area. Externals wall, service shafts, balcony, verandah and open terrace have been excluded from the definition of carpet area.

As for ongoing projects allotted on the basis of super area before the 2016 Act came into force, the promoter needs to disclose what all components constitute super area and whether or not super area as promised in the builder-buyer agreements exist.

No conveyance deed of a real estate unit shall be registered except for the basis of carpet area, Khandelwal said, adding that in cases where the real estate unit was allotted prior to the 2016 Act, the promoter shall at the time of registration of the conveyance deed has to make disclosure of all components constituting the super area.

Sameer Kumar, a member of the HRERA, said any agreement for sale on any other basis except for carpet area shall amount to indulgence in unfair trade practice by the promoter and would invite action as per the 2016 Act.