Carpet area vs built-up area: what RERA defines

What the Act says

Section 2(k) gives the definition above. Two explanations follow: “exclusive balcony or verandah area” is the balcony that is appurtenant to the apartment and meant for the exclusive use of the allottee, and “exclusive open terrace area” is the same for an open terrace. A promoter applying for registration must give “the number, type and the carpet area of apartments for sale in the project” (s. 4(2)(h)). The agreement for sale must follow the form prescribed by the state (s. 13(2)).

The three measures, in plain terms

The Act does say the common areas (including open parking and community facilities) belong to the association of allottees, so open parking cannot be sold (s. 2(n), MoHUA FAQ Q11-12). The buyer gets an “undivided proportionate title in the common areas” (s. 17(1)). The common areas are therefore not carpet area and should not be paid for as if they were.

How the area affects what you pay

• Price. A price quoted per square foot on a larger, non-statutory area looks cheaper than the same price per square foot of carpet area. Compare two projects on the same basis: total price divided by carpet area.
• Variation after construction. In the prescribed agreement of Uttar Pradesh the promoter confirms the final carpet area after completion and recalculates the price. If the area is smaller, the promoter must refund the excess within 45 days with interest at the rate in the rules. If it is larger by not more than 3%, the promoter may ask for the difference at the next payment milestone, at the same rate per square metre (clause 1.7). Other states prescribe their own agreements, so read yours.
• GST. An “affordable residential apartment” has a carpet area not exceeding 60 square metres in metropolitan cities or 90 square metres elsewhere and a gross amount of not more than ₹45 lakh (Notification 03/2019-CT(Rate)). The effective GST is 1% for these and 5% for other apartments (GST Council FAQ). See GST on under-construction property.
• PMAY-Urban 2.0. The interest subsidy applies to carpet area of up to 120 square metres, with the other conditions in the scheme guidelines. See PMAY-Urban 2.0.
• Stamp duty and property tax. These are state and municipal matters, and RERA’s definition does not decide them. Ask which area your state and municipality use: read your state’s stamp duty guide and the municipal rules in property tax in Indian cities.

What to ask for before you pay

1. The carpet area in square metres and square feet on the booking form and in the agreement for sale (see agreement for sale and sale deed).
2. The same figure on the project page of the state RERA authority (how to check).
3. The rate per unit of carpet area and a list of what is charged separately (parking, club, maintenance deposit).
4. What happens if the final carpet area differs, in the agreement’s own words.
5. A floor plan with dimensions, so a surveyor or architect can measure the flat on possession. See architects.

Which professional to consult

An architect or a surveyor can measure a completed flat against the sanctioned plan; a property lawyer (advocate) enrolled with the State Bar Council can read the area clauses and the refund clause. A registered valuer can value the flat on its carpet area.