What is RERA Carpet Area? Why It’s Important, How It’s Calculated?
When purchasing a property, one of the most common terms buyers come across is Carpet Area. However, with the introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA), the concept of carpet area has been standardized to prevent discrepancies and ensure transparency in real estate transactions.
Understanding RERA Carpet Area is crucial for homebuyers to
make informed decisions and avoid being misled by builders or developers. In
this blog, we will explore what RERA Carpet Area is, its significance, and how
it is calculated.
What is Carpet Area Under RERA?
Before RERA was implemented, different builders used
different methods to define carpet area, leading to confusion and
misrepresentation. To bring uniformity, RERA introduced a standardized
definition.
Definition of Carpet Area as per RERA
According to Section 4 of the RERA Act, the
carpet area is defined as:
“The net usable floor area of an apartment, excluding the
area covered by external walls, areas under services shafts, exclusive balcony
or verandah area, and exclusive open terrace area, but includes the area
covered by the internal partition walls of the apartment.”
In simple terms, carpet area refers to the actual usable
area inside the apartment, where a carpet can be laid. This does not
include external walls, balconies, or terraces.
Importance of RERA Carpet Area
Understanding RERA Carpet Area is crucial for multiple
reasons:
1. Eliminates Misleading Information
Before RERA, developers used terms like built-up area
and super built-up area, which included walls, balconies, and even
shared amenities, leading to confusion. With the standardized RERA Carpet Area,
buyers now get clarity on the actual usable space.
2. Prevents Overcharging
Builders previously included common spaces (like staircases,
lifts, and clubhouses) in the calculation of an apartment’s size, which led to
inflated property prices. RERA ensures buyers pay only for the space they can
use inside their homes.
3. Transparency in Pricing
Under RERA, property prices must be quoted based on the
carpet area, ensuring standardized pricing and transparency. This allows
buyers to compare properties more effectively.
4. Better Loan Approval Process
Banks and financial institutions also use RERA Carpet
Area as a benchmark when approving home loans, ensuring that loan amounts
are calculated based on the actual usable space.
5. Legal Protection for Homebuyers
Since builders must register their projects under RERA and
disclose the carpet area, any discrepancies can be legally challenged. This
provides better legal protection to buyers.
How is RERA Carpet Area Calculated?
The calculation of RERA Carpet Area is straightforward and
follows a set formula:
Formula for Carpet Area Calculation
Carpet Area = Net Usable Area Inside the Apartment +
Internal Partition Walls
This means:
- It
includes bedrooms, living room, kitchen, bathrooms, and internal
passageways.
- It excludes
external walls, balconies, terraces, and common areas like staircases and
lobbies.
Thus, the carpet area of this
apartment is 704 sq. ft. If a builder claims the apartment size is 1,000
sq. ft, the extra 296 sq. ft would likely include walls, balconies, or common
areas.
Difference Between Carpet
Area, Built-Up Area, and Super Built-Up Area
Many homebuyers confuse Carpet
Area with Built-Up Area and Super Built-Up Area. Let’s break
it down:
1. Carpet Area
Includes: Net usable space inside
the apartment + internal partition walls
Excludes: External walls,
balconies, common areas
2. Built-Up Area
Includes: Carpet area + thickness
of external walls + balconies
Excludes: Common shared areas
like lobbies, staircases, and lifts
3. Super Built-Up Area
(Commonly Misleading)
Includes: Built-up area +
proportionate share of common spaces (lobbies, staircases, lifts, clubhouse,
etc.)
Excludes: Nothing, as developers
often add shared spaces to increase the size artificially
Key Takeaways for Homebuyers
- Always
check the RERA Carpet Area before purchasing a property.
- Compare
properties based on carpet area rather than built-up or super built-up
area.
- Ensure
the developer provides accurate details about the apartment’s carpet area
as per RERA guidelines.
- Remember
that property prices should be based only on the carpet area, not
the super built-up area.
- If
you find discrepancies in the stated carpet area after purchase, you can
file a complaint under RERA regulations.
Understanding RERA Carpet Area empowers homebuyers to
make informed decisions, ensuring they get the space they pay for. With RERA’s
transparency rules, buyers can avoid misleading information and hidden
charges by developers.
Before finalizing any real estate transaction, always verify
the RERA Carpet Area to avoid overpaying for unnecessary spaces like
balconies, common areas, and external walls. By doing so, you safeguard your
investment and get value for your money.
Are you planning to buy a home soon? Make sure you check the RERA Carpet Area before making a decision
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