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The terms you must be aware of before buying a home

Jun 17

The terms you must be aware of before buying a home

Not surprisingly, the maximum number of cases registered in the consumer courts, are against developers on the issue of cheating, regarding the size of the flat. According to the provisions of the  RERA Act, 2016 it is now the duty of the developer, to make buyers aware of the carpet area and quote prices based on this and not the super built-up area.

RERA Act, 2016 defines the term Carpet Area only. We must know about the other terms too used in the normal parlance.

Carpet Area

Carpet Area  means the net usable floor area of an apartment, excluding the area covered by the 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.

Built-up area-

Built-up area includes the carpet area, plus the extra areas certified by the authorities, such as the area of the outer and inner walls, dry balcony area, etc.

Super built-up area-

Carpet area + terrace + balconies + areas occupied by walls + area occupied by common/shared construction (e.g. lift, stairs, clubhouse, etc). Generally, builders use loading factor on the carpet area to arrive at the super built-up area.

Loading factor-

Loading factor is the difference between the super built-up area and the carpet area of your flat. It is used to add constructed spaces not exclusively allocated to you. It includes shared areas like lifts, lobbies, staircases, and amenities, as well as a part of your terrace and balcony. The loading factor of 1.20 means that your builder has added 20% to your carpet area. If the residential project does not have many amenities, the loading factor will be small. In most cases, a loading factor of 1.30 is considered sufficient.

Per square foot rate-

It is the rate quoted by the builder. It is typically applied to the super built-up area to determine the price of your flat. The important thing to remember here is that the per-square-foot rate of your flat is normally based on the super built-up area (also called saleable area), which includes not only the carpet area of your flat (i.e. the usable area inside your flat) but also some additional areas of the flat (like balcony and terrace area) and building complex (like lobbies, staircases, passages, etc.).

Therefore, one should ask the developer for the ratio of carpet area to the super built-up area. The higher the ratio of carpet area to the super built-up area, the more space one will get inside the flat.