Property not registered on carpet-area basis to be declared illegal

Any property sale agreement, if not registered based on carpet area alone, will tantamount to indulging in unfair trade practice by the promoter and attract action, the Haryana Real Estate Regulatory Authority (HARERA), Gurugram cautioned


The Haryana Real Estate Regulatory Authority (HARERA), Gurugram has issued regulations for sale of apartment or building in any real estate project on carpet-area basis, said HARERA, Gurugram, chairman Dr KK Khandelwal.

“Any sale of real estate project (on any other basis except carpet area) after the Real Estate (Regulation and Development) Act, 2016 coming into force will be declared null and void by HARERA,” Dr Khandelwal said.

He added that 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 said 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, triggers avoidable litigation.

The HARERA chairman said that to ensure sale of plot, apartment, building, etc in a transparent manner and to protect the interest of consumers in the real estate sector, regulations have been made by the Authority.

Khandelwal said that before Real Estate (Regulation and Development) Act, 2016 came into existence, there was lack of a legal description for the term ‘carpet area’.

“Now, this vagueness and uncertainty has been addressed. The term carpet area has been specifically and distinctly defined under Section 2(k) of the Act (ibid),” he said.

He added that 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. 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 said.