हिंदी
Sale on super area basis shall be treated as fraudulent/unfair trade practice by the promoter
Conveyance deed shall be executed only on carpet area basis
Sale of apartment or building only on carpet area basis
Sale of Super area or any other basis is illegal
Chandigarh, April, 28: While tightening the noose around the promoter or real estate agent who are found violating the instructions issued by the Haryana Real Estate Regulatory Authority (HARERA), Gurugram, the Authority has issued regulations for sale of apartment or building in any real estate project on carpet area basis Regulations, 2021.
Divulging more details in this regard, Dr. K.K. Khandelwal, Chairman, HARERA, Gurugram said that 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,” he added.
He further shared that the practice of sale of real estate on super area basis is misleading, ambiguous, opaque, and gives rise to confusion and complexities and at times result into avoidable litigation.
He said that to ensure sale of plot, apartment, or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector, these regulations have been made by the Authority.
Carpet Area
Dr. K.K. Khandelwal further stated that before Real Estate (Regulation and Development) Act, 2016 came into existence there was lack of a legal description for the term “carpet area”. The Real Estate (Regulation and Development) Act, 2016 has provided specific/concrete definition of carpet area which now has addressed the vagueness and uncertainty in this regard. The term carpet area has been specifically and distinctly defined under section 2(k) of the Act ibid.
The definition of carpet area as provided under section 2(k) of the Act means the net usable floor area.
He said that externals wall, service shafts, balcony, verandah and open terrace have been excluded from the definition of carpet area. However, the internal partition walls of the apartment are not excluded as they form a part of the integral structure that is the carpet area, he informed.
“The definition of carpet area has now been made transparent and leaves no scope for any ambiguity categorically specifying the property,” asserted Dr. K.K Khandelwal.
He said that all the 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”, he added.
Compliance
Dr. K.K. Khandelwal further informed that in case of ongoing projects where the promoter has allotted real estate units on super area basis prior to coming into force of the Real Estate (Regulation and Development) Act, 2016, he shall disclose what all components exactly constituted super area and also whether the super area as promised in the builder buyer agreement entered into between the allottee and the promoter has actually assigned existed as per builder buyer agreement or not.
This is to prevent any fraud with the allottee when the unit is sold on super area basis. In case where 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, he added.
He said that no conveyance deed of a real estate unit shall be registered except on the basis of carpet area. In cases where the real estate unit was allotted to the allottee prior to the Act ibid coming into force, the promoter shall at the time of registration of the conveyance deed has to make disclosure of all the components constituting the super area, however the conveyance deed shall be registered only on carpet area basis.
Sh. Sameer Kumar, Member, HARERA, Gurugram further 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 real estate agents shall facilitate sale or purchase of an apartment or building in any real estate projects on carpet area basis and not on super area basis or on any other basis. If any real estate agent is found indulged in sale/purchase, he shall be presumed to be engaged in unfair trade practice and his/her registration to act as a real estate agent may be revoked or/and penal proceedings may be initiated against him as per provisions of section 65 of the Act ibid.
He said that the total price/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 apartment.
He further said that the revenue authorities are expected to notify collector rate only on carpet area basis, now the sale on any other basis is illegal.
Penalty for non-compliance/violation of these regulations:
Dr. K.K. Khandelwal made it clear that regulations shall be applicable to all real estate projects, irrespective of the fact that they are registered/registerable or exempted from registration.
Any sale of real estate project on any other basis except on carpet area basis after Real Estate (Regulation and Development) Act, 2016 coming into force shall be declared as null and void by the Authority.
No.IPRDH/2021
