I have recently paid a token amount to block an apartment in an upcoming township in Pune, have to pay the remaining amount towards Stamp Duty, Registration and Legal Fee in the next few days to go ahead with the booking. However, I realize now that all the price projections are based on the Super Built Up area and not on the Carpet Area. The actual Carpet Area is 752 Sq. Ft as per the definition from the Real Estate (Reg & Devpt) Act 2016. Even if i add the Balcony and the Terrace the total Area comes to 838 Sq. Ft. Whereas i am being charged for 1130 Sq. Ft. Super Built Up Area. Please advise what immediate remedial actions can I take. Thanks
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1) when you booked the apartment your allotment letter must be mentioning carpet area of flat
2) sale deed would reflect carpet area of flat
3) builder cannot sell flat on basis of super built area
4) you cancel the book if your agreement is made on super built area of flat
5) seek refund of booking amount paid
It is the standard practice to charge the price of a flat on calculation of super built area also which includes common areas and facilities.
Since the flat owner gets the facility of common area of facility , the builder the charge of its cost from the respective e flat owners
There is nothing illegality in it.
Thanks Mr. Ajay for your prompt reply. I have not booked the flat yet, so we have not reached the Sale Deed part till now. I have only paid a token amt to block it. We did see a sample flat, but then it is very difficult (at least for me) to judge the area like that. It is only after i got the welcome letter from the builder which mentioned all the details that i realized this aspect. Now even for cancelling they say that they will deduct 10% from the blocking amt, wouldn't it be illegal?
1) if you have not booked the flat but blocked it do you have any receipt of payment made by you
2) is there any clause mentioned regarding cancellation charges? please clarify
if there is no clause regarding cancellation charges builder cannot deduct 10%from booking amount
move consumer forum against builder and seek refund of 10%deducted by builder
Have you entered into an agreement to sell with the builder which provides for forfeiture of a part of token amount? If the answer to this question is in negative then entire amount is to be refunded in the event of cancellation. A legal notice may be issued followed by a suit for recovery if the builder does not agree to refund the entire amount.
you have right to take back your earnest money without any deduction because no legal liability arises until sale deed has signed.
now builder cannot charge on the super buildup area. only carpet area is to be taken into consideration for the sell of flat.
Carpet Area : As its name suggests, Carpet Area is the area where we can spread a carpet, means area calculated from inner wall to wall distance inside the house. This would also include steps if any, inside the house. So essentially, Carpet area is nothing but the net usable area inside the house.
Built up Area : Built up area is Carpet Area + Area of walls and ducts+ 1/2 the Area of terrace. This is usually 10% more than the carpet area. A terrace is considered as half the actual area for calculating built up area.
Super Built up Area : This is built up area + area occupied by common amenities like lifts, corridors, awnings, club house, stairs. Super built up is usually around 25% more than Built up area. This is also called as Salable Area.
Right method for carpet area calculation
Remember that loading factor is supposed to be loaded (added) and not subtracted.
Right formula is, Carpet area * 1.25 = Saleable Area
That means Carpet Area = Saleable area / 1.25 = 1500 sqft / 1.25 = 1200 sqft.
This means, you should have ideally got 1200 sqft with 25% loading.
On the contrary, if the actual carpet area is 1125 sqft (can be calculated from the layout in brochure), the super built up area will work out to be 1125 * 1.25 = 1406.25 for which you should be paying, whereas the builder charges you for 1500 sqft. i.e. for 93.75 sqft. extra.
Therefore, your yardstick to compare projects should be effective carpet area per sqft. rate and not super built up area rate.
I have not booked the flat yet, so we have not reached the Sale Deed part till now. I have only paid a token amt to block it. We did see a sample flat, but then it is very difficult (at least for me) to judge the area like that. It is only after i got the welcome letter from the builder which mentioned all the details that i realized this aspect.
Now even for cancelling they say that they will deduct 10% from the blocking amt, wouldn't it be illegal?
Many developers will include even open areas like roof terrace, play areas, garden etc. in the super built up area calculation. You won’t even realise that you may end up paying for actual loading factor of 50% or even higher though on paper you will be shown that the loading factor is just 25%.
Generally, you will be enticed by a very attractive basic per sqft price which a developer might be offering. However, you will realise many traps once you book the property and when the cost of property keeps going up. Once you pay your booking amount, you would hardly have any exit options or you will be charged heavy cancellation charges. So, it is in your interest to ask as many questions as you can before you handover your first booking amount cheque.