The Real Estate sector is abuzz with the freshly baked bill – The Real Estate Regulatory Authority(RERA) Bill, that dictates to boost investments in real estates as well as insulate the interest of all home buyers. This Act aims to bring about an equilibrium in the Real Estate Sector where neither the buyer nor the seller will be entitled to something more than what they deserve through malicious practices.
To be precise the Government of India effectuated the RERA Bill:
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to protect the interest of the consumers
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to ensure timely execution of projects
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to bring an element of transparency in the real estate tradings
A property size is calculated in three different ways: Carpet area, Built-up area and the Super Built-up area. What do these terms mean?
1. Carpet Area – Area calculated excluding the walls and its thickness, also known as the net usable area.
2. Built-up Area – Carpet area + balcony + thickness of the walls
3. Super Built-up Area – Built-up area + common area( lift, lobby, stairs etc.)
The significance of punctuating carpet area in the freshly baked Real Estate Bill has brought about a respite to all the home buyers as there will be a common measuring standard in the real estate industry.
What are the advantages of mandating the disclosure of carpet area by the developer or the builder?
There are many advantages of measuring the property’s value through the carpet area, wherein the below mentioned are some of the basic advantages that define the purpose of RERA
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The home buyers will get to know the exact area of their house, excluding the balcony, terrace, verandah and many other empty spaces will now be eliminated from the area that is being displayed by the buyer.
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This initiative will now encourage good designs and optimum utilization of space by the builder. With the advocacy to display the prices as per the carpet area, builders will concentrate on utilizing each and every aspect of the available space.
This said, there are buyers who are worried that the law will accelerate the prices of the property per sq ft as the total price would be divided by a lesser denomination. But this act is sure to protect the buyers from fraudulent sellers or developers duping innocent buyers with irrelevant or rather confusing price quotations. To eradicate such turbulence in the Real estate sector, carpet size has been pinned down as the standard measuring tool for all property. eValue Bricks, the first Prop-Tech Start Up approved by the government of India in the year 2017, diligently works in collaboration with RERA to make real estate tradings smooth and tranquil.
Planning to buy a house after the debut of RERA ?
Keep the following things in mind if you are planning to buy a house after the RERA implementation:
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Reputation plays an important role in rolling out your trust on the builder. Always go for those builders who have a good stature in the real estate market. Moreover, they should be financially sound and should have a clean track record. All these attributes in a builder ensures their capacity to comply with RERA. This could potentially save you from any future fatalities in regards to finance, quality, and legal conflicts with the builder.
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Look for the RERA registration number. A builder or a developer who has registered with the RERA will be carrying their RERA registration number, always make sure that you look for the number so that you can be assured of their legal formalities.
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Make yourself aware of the different terms related to property measurements like the Built-up area, super built-up area and the carpet area. This way you will know the ins and outs of how the property price has been calculated.
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Make efforts to find the total cost of the property. There might be other expenses added to the total cost of your home like the expenses arising from parking, club house, etc that needs to be figured out to save you from last minute realization of the actual price to be paid to the builder.
Final Note
The implementation of RERA will make it easy for the buyers to pay for what they see and not for what they perceive to be. If you are planning to buy a house, you can get assisted at eValue Bricks – an online platform that deals in the buying and selling of real estates in association with the Real Estate Act. Visit the website www.evaluebricks.com and make your maiden real estate trading a smooth process.