Sale of property on the basis of super area is considered as a ‘fraudulent / unfair’ business practice: HARERA

The Haryana Real Estate Regulatory Authority has made it clear that any sale on the basis of super area will be treated as ‘fraudulent / unfair’ business practice by the promoter. Conveyance deeds also have to be executed on the basis of carpet area only.

“No deed of a real estate unit shall be registered on the basis of carpet area. In cases where the real estate unit was allotted before the enactment of the Act, the promoter will have to disclose all the components that make up the super area at the time of registration of the deed, though the confirmed deed is registered only on the basis of carpet area, ” Harera said on 27 April.
The move comes after a large number of homebuyers complained that property developers are charging them for the super area and not the carpet area.

According to the H-RERA Act, which came into force in 2017, developers are allowed to sell property based on the actual carpet area and are not allowed to sell the super area, but due to unclear definitions, they often do away with it.

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H-Rera (Gurugram) chairperson KK Khandelwal said that punitive action will be initiated against the promoter or real estate agent for violating instructions.
“The sale of the apartment or building should be on the basis of carpet area only. Sale of super area or any other grounds is illegal. Sale based on super area will be treated as fraud / unfair trade behavior by the promoter. Conveyance deed shall be allowed only on carpet area. Will be executed on the basis, ”he said.

The practice of real estate sales on a super area basis is misleading, unclear, opaque, and gives rise to confusion and complications and at times results in consequential litigation. To ensure the sale of plots, apartments, or buildings, as the case may be, or the sale of a real estate project, in an efficient and transparent manner and to protect the interests of consumers in the real estate sector, these are made by rule Authorities have been added to Khandelwal.

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Before the Real Estate (Regulation and Development) Act, 2016 came into existence, there was a lack of legal details for the carpet sector. It has provided specific / concrete definitions of the carpet sector which has now addressed ambiguity and uncertainty in this regard.
In case of ongoing projects, where the promoter has allotted real estate units on the basis of super area before the enactment of the Real Estate (Regulation and Development) Act, 2016, he shall disclose that all the constituents constituted super area And whether the super as promised in the builder buyer agreement was entered into between the area allottees and whether the promoter actually existed according to the builder buyer agreement, Harera said.

This is when the unit is sold on a super area basis.

In cases where the Convention Deed of Units has not been executed, the Promoter shall also indicate the carpet area in addition to the Super Area and its details / components.

Hamera, Gurugram member Sameer Kumar made it clear that any agreement for sale on any basis other than the carpet area would involve unfair trade practices / fraudulent behavior by the promoter and attract appropriate action as per the relevant provisions. Act.
As per norms, even if the unit is to be registered on the basis of carpet area, the total value / cost will not remain low. This will not change the sales consideration. This is for the purpose of disclosure and accurate description of the apartment.

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This step will bring more transparency. Affordable housing projects are already following the carpet sector norms. “We expect sales to increase as a result of this move,” said Rajat Goel, JMD, MRG World.

Pradeep Aggarwal, Founder and President of Signature Global said that “We welcome the action taken by HRERA. In the current scenario, when the market is end-user driven, it is important to be transparent in practice. “

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