If you are a real estate buyer who is planning to invest in your dream house, we recommend being aware of the terms used by agents in real estate.
Why?
This will help you avoid the costly mistakes which could have an inverse effect on the chances of you getting the right property.
Speaking of the terms, there are three jargons that are widely used by developers and brokers in real estate:
These terms are widely googled for definition. In fact, there are some unscrupulous companies that have also exploited the buyers due to the lack of knowledge to their advantage by charging higher costs as per the original prices. This is why it is super important for potential buyers to be well aware of, at least the terms, if not in and out.
To help you with this, we have curated an article here with short yet effective definitions that can help you avoid such costly mistakes in real estate.
Here are the definitions of the said:
As simple as it can get, a carpet area is an area that can be covered with a carpet. In other words, it is the distance from one wall to the other, which makes the net area of the floor in the house.
As per the Real-Estate Regulation and Development Act or the RERA, it is mandatory to disclose the carpet area by the developers for each apartment, based on the sale price calculation. This does not include the area covered by external walls, terrace, or the balcony, but is your personal space that includes the inner wall thickness of the house.
In most cases, the carpet area includes around 70 percent of the built-up area, encompassing the bedrooms, living room, kitchen, bathrooms, etc.
To calculate the total carpet area;
If the built-up area is 1,000 sqft, then the carpet area should be 70% of 1,000 sqft, which is equal to 700 sq ft.
This is the comprehensive area that is the sum of the thickness of the wall, terrace/balcony, and the carpet area of the housing unit. In most cases, the built-up area includes 70-80% of the super built-up area of the property.
Note that the percentage can vary with the developer and the project, with an addition of 10-15% space of the carpet area that becomes the built-up area.
Built-up area = Carpet area + area of walls + area of the balcony
To calculate the total built-up area;
If the super built-up area is 1,200 sq ft, then the built-up area is 70-80% of 1,200 sq ft, that is, 840 sq ft or 959 sqft, while the carpet area would be 588 or 671 sqft.
It is the total area of the built-up and space used by the common areas like the staircase, lobby, clubhouse, elevator, shafts, etc. More often, the developers charge the buyers on the basis of this area to help cover the cost of construction, also known as a ‘saleable’ area.
The loading factor (that is, the proportionate share of the common area) is closely related to the super built-up area in an apartment. This is determined by multiplying 1.25 to the carpet area, that is, the increase of 25-30% of the total saleable area.
Putting in words, this value is obtained by the difference between the super built-up and carpet area. There are other developers who price the apartment on the basis of the loading factor.Super built-up area = Carpet Area (1+ Loading Factor)
If the developer applies the loading of 25% on the apartment that has a carpet area of 800 sq ft. Then, the super built-up area could be 1,000 sqft.
We hope that the quick and easy definitions have helped you understand the difference between the terms- Carpet area, built-up area, and super built-up area. These are very important for you, especially when planning on buying a house in real estate, India.
It is the area that can be covered with a carpet, or, is the distance from one wall to the other, which makes the net area of the floor in the house.
25-30% or lower carpet area is the super built-up area. For example, if an apartment has a size of 1,400 sq. ft, then the actual usable area/carpet area could be anywhere between 910-1,050 sq. ft.
Should a homebuyer pay for the super-built-up area?
You must only pay for the built-up area and NOT for the super built-up area for the property, as the stamp duty charges on the built-up area. Also, according to the RERA act, one must only pay for the carpet area, that is the area within the wall.
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