Hrera Regulations For Sale Of Apartments On The Basis Of Carpet Area

Hrera Regulations For Sale Of Apartments On The Basis Of Carpet Area

Move by Haryana Real Estate Regulatory Authority, (HRERA) to regulate the sale of apartments/Floors only on the basis of carpet area comes out as a big relief to the homebuyers. Considering the objectives and intentions of the Real Estate (Regulation and Development) Act, 2016 [RERA] and the Rules made thereunder, it was felt that it was the need of the hour to frame regulations on the sale of Apartment/ Floors in a Real Estate Project on the basis of Carpet Area. The purpose of these regulations is to ensure more efficiency and transparency in the procedure of the sale of apartments/ floors and parallelly to safeguard the interest of consumers in this sector. Selling apartments /floors based on super area basis is unlawful, deceptive, vague, and leads to uncertainty.

Rationale Behind Sale Based On Carpet Area

Prior to RERA, it was a common practice by builders to list their properties based on the super area to distort the homebuyers how spacious the property was. Super area of a property includes carpet area along with balconies, terrace and areas covered by wall and common areas such as lift, stairs, etc. Sale of property on the basis of super area not only gives a wrong idea about the area of the house but also decreases the per square feet cost of the house. The concept was thus introduced to recover costs suffered by the builders in constructing the common areas. It was observed that a super area clause used in builder-buyer agreement was obscure and there was ample of disparities in its definition.

But later Real Estate (Regulation and Development) Act, 2016 was enacted which casts an obligation on all the developers to sell their apartments/floors on the basis of carpet area. This step was taken after many complaints were raised by the homebuyers regarding how unfair and vague the super area clause was. RERA has now resolved the issue of vagueness and uncertainty attached with the definition of carpet area. S. 2 (k) of the act defines carpet area as “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.” Carpet area doesn’t include common areas like lift, lobby, etc.

Key Highlights Of The Haryana Real Estate Regulatory Authority, Gurugram (Sale Of Apartments/Floors In A Real Estate Project On The Basis Of Carpet Area) Regulations, 2021

  1. Promoters are required to provide full disclosures regarding number, type and carpet area of property including the area of exclusive balcony or verandah and open terrace area. To ensure more transparency and clarity for the buyers, the developers of all ongoing project have to unveil the information about the size of their apartments, based on carpet area.
  2. If any of these conditions are infringed by promoters, a legal action shall be instituted against the promoter which shall include revocation of registration granted under S.5 of Real Estate (Regulation and Development) Act, 2016.
  3. To avoid fraud in cases where real estate units were sold prior Real Estate (Regulation and Development) Act, 2016, the promoters are required to reveal all the components which constituted super area.
  4. The conveyance deed of the property shall be registered only on the basis of carpet area.
  5. If any agreement for sale is found to be made except on the basis of carpet area, it would amount to fraudulent practice by the promoter.
  6. A real estate agent shall be deemed to be involved in unfair trade practices if he is found selling property on super area basis and his licence may also be revoked and additionally a penalty may be imposed on him.
  7. These regulations shall be applicable to the following:

a. Projects instituted after Real Estate (Regulation and Development) Act, 2016 was enacted.

b. Ongoing projects which were instituted before Real Estate (Regulation and Development) Act, 2016 was enacted.

c. Projects which are exempted from registration as per provisions of section 3(2) of the Real Estate (Regulation and Development) Act, 2016.

d. To resale of a real estate unit.


a. If a promoter sells a unit except on carpet area, he shall be liable for fraudulent practice and as a result his license shall be cancelled and the registration granted under Section 5 of Real Estate (Regulation and Development) Act, 2016 shall also be revoked. The authority may take this action either on receipt of a complaint or suo moto. Promoters shall also be liable for a penalty which may extent up to five percent of the estimated cost of the real estate project as determined by the Authority under S.61 for violation of these regulations.

b. Non-compliance for these regulations by real estate agent would be treated as unfair trade practice under Section 10 of the Real Estate (Regulation and Development) Act, 2016 and the registration of such real estate agent shall be revoked as per provisions of section 9(7) of the Act.

Thus, any sale of real estate project except on carpet area basis after enactment of Real Estate (Regulation and Development) Act, 2016 shall be deemed as null and void.

Views are personal

Source : Live Law

Related Posts

Realty developer M3M will develop 2 lakh square feet of retail space in Gurgaon, Sushant Lok, Sector 57, Gurugram. M3M...
Wish to buy a lavish home? You need to check these top 5 High Rise Apartments in Gurgaon. Gurgaon is...

About us

We are a real estate consultancy firm working in Gurugram & Delhi/NCR with a global mindset, bringing together exciting real estate developments and investment opportunities under one roof. All our services are delivered with professionalism and politeness.

This website is in the process of being updated. by accessing this website, the viewer confirms that the information including brochures and marketing collaterals on this website are solely for informational purposes only and the viewer has not relied on this information for making any booking/purchase in any project of the company. Nothing on this website, constitutes advertising, marketing, booking, selling or an offer for sale, or invitation to purchase a unit in any project by the company. The company is not liable for any consequence of any action taken by the viewer relying on such material/ information on this website.

All trademarks, logos, and names are properties of their respective owners. All Rights Reserved.Ⓒ Copyright 2020-21  © Property in Gurugram  Blog