H-RERA issues directive for sale of apartments

29 Apr 2021 CW Team

The Haryana Real Estate Regulatory Authority (H-RERA) has issued regulations for the sale of apartments or buildings in real estate projects on a carpet area basis.

Previously, apartments were sold on a super built-up area basis. After the issuance of the new regulations, sales on a super area basis shall be treated as fraudulent and an unfair trade practice by the promoters.

The Gurugram-based regulator warned that penal proceedings would be initiated against the promoter or the real estate agent violating the instructions.

Carpet area means the net usable floor area excluding the area covered by external walls, service shafts, balconies, verandahs, open terraces, according to the H-RERA Act, which came into effect on 1 May 2017. The conveyance deed shall be executed only on a carpet area basis. The sale of an apartment or building is only on a carpet area basis. So the sale of a super area or any other basis is illegal.

H-RERA told the media the practice of the sale of real estate on a super area basis is misleading, ambiguous, opaque, and gives rise to confusion and complexities and at times result in avoidable litigation.

These regulations have been made by the authority to ensure the sale of plot, apartment, or building, as the case may be, or sale of real estate projects, efficiently and transparently and to protect the interest of consumers in the real estate sector, said H-RERA.

Noting that before the Real Estate (Regulation and Development) Act of 2016 came into existence, there was a lack of a legal description for the term 'carpet area', H-RERA said the Act has provided a specific and concrete definition of carpet area, which now has addressed the vagueness and uncertainty in this regard.

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