The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has taken a significant step to safeguard homebuyers and enhance transparency in real estate transactions. Builders have been directed to sell apartments based only on the carpet area, with the regulator making it clear that selling units on the basis of super area is now considered illegal and may result in legal consequences. This move is aimed at ensuring fairness and clarity in property transactions.
The decision follows the 2016 Real Estate Act, which tells builders to share details like the number and types of units, floors, balconies, terraces, etc., when registering a project. Builders must reveal the actual space inside walls (carpet area) during this registration process. This ensures transparency in the real estate sector.
The Chairman of UPRERA, Sanjay Bhoosreddy, stressed the importance of buyers focusing on the carpet area as the real measure of their purchased unit. He stated, “Buyers should consider the carpet area as the actual space of the unit and pay the builder accordingly.” This highlights the regulator’s push for transparency in property transactions.
Instances of builders selling units based on super area have been identified, prompting the regulatory authority to take decisive action. Selling apartments on the basis of super area contradicts the provisions of the RERA Act, and violators may face legal consequences, warned UPRERA officials.
While developers are permitted to advertise projects based on the super area, the sale of apartments must adhere to the carpet area, as outlined in the builder-buyer agreements. To facilitate compliance, UPRERA has provided a model agreement for sale on its portal, ensuring both buyers and builders reference transactions based on carpet area.
Carpet area, defined as the net usable floor space within an apartment or house, excludes common areas such as lifts, lobbies, staircases, pipe ducts, and community centers. Super area, on the other hand, encompasses these shared spaces.
The move by UPRERA is seen as a positive step towards ensuring fairness in real estate transactions and providing greater clarity to homebuyers. Buyers are encouraged to make informed decisions by considering the carpet area, and developers are advised to align their practices with the legal requirements to avoid potential legal repercussions.