Over the years, home buyers have been arm twisted into paying for more than what is the actual area of the flat. A 1000 square feet house in Juhu priced at Rs 25,000 per square feet, should cost you Rs 2.5 crore. But thanks to the inclusion of the built up area which puts the saleable area of the flat at 1350 square feet, you have to pay Rs 3.37 crore.

Though the civic body has banned the sale of flat on the basis of built up area, the builder lobby has largely ignored the diktat, thanks to the lack of punitive measures.
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  • Every builder is selling flat on built up area, If govt has any such rule then why govt is not taking any action against the builders?
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  • Originally Posted by Rahul_Pune
    Every builder is selling flat on built up area, If govt has any such rule then why govt is not taking any action against the builders?

    Yes the rule is there, if the rule comes into action,builders will sale with carpet area and increase the rate per psf. Its just the same way happened with the parking rule.
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  • Is govt trying to put this rule in action???
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  • Originally Posted by Rahul_Pune
    Is govt trying to put this rule in action???




    yes read this article in times of india
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  • This is an excellent development, let them increase the rates. Atleast people will come to know the actual rate you are buying.

    There is a large difference between the land rates and the "actual carpet area" rates. Builders want to quote on the super built area, because they want to show that they are only selling at 4000 rs a sq feet, the land price itself is 1500 -- and hence making nothing out of it.

    However, if you calculate on carpet, the price is close to 6500-7000 per sq feet - meaning the difference between the land and the actual rate is very high.
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  • Originally Posted by mamol
    Yes the rule is there, if the rule comes into action,builders will sale with carpet area and increase the rate per psf. Its just the same way happened with the parking rule.

    I don't think govt/bank is strict on this. I recently saw home agreements where builders mentioned built up area only. There is nothing mentioned like carpet area/loading etc. Bank are also reluctant on this. They are providing loan even if carpet area is not mentioned in agreement.:bab (6):
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  • Originally Posted by pnb_2k
    I don't think govt/bank is strict on this. I recently saw home agreements where builders mentioned built up area only. There is nothing mentioned like carpet area/loading etc. Bank are also reluctant on this. They are providing loan even if carpet area is not mentioned in agreement.:bab (6):

    What I came to know is the builders are already selling flats on the basis of carpet area. As per MOF act, the agreement has to be on the basis of carpet area but in this case builders are not specifying built up area in agreement but charging accroding to built up area only. :bab (45):The agreement looks like you have purchased flat on the basis of carpet area but, actually, you have paid the price of built up area.
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  • And then there are crook builders who don't even display the carpet area in the brochure, only salable is mentioned. You get to know the carpet area only at time of registration :bab (45):. Best to avoid such builders.
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  • Builders still charging for built-up area instead of carpet area - Pune Mirror
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  • It would be really very helpful for buyers when this on paper policy comes in action.

    http://www.punemirror.in/article/62/2012061320120613115929643bc2e3629/Carpet-bombed.html
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  • The same paper says that though the law was passed 4 years back its still on papers.

    Neither PMC/PCMC engineers nor builders comply with it. So I have no hope that anything wd happen.

    Also there was is a law which said car parking cannot be sold so Builders implemented this law promptly. They use to take 1 lakh - 1.5 lakh for car parking, which they increased to 3-5 lakhs as infrastructure charges.:bab (5)::bab (5)::D:D
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  • All these laws are useless. charge on carpet area - whats the difference. Builders will increase the price by 30% and then charge on carpet. If needed buyers can always see their carpet area and then calculate rate reverse way to compare.
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  • Does this apply to used resale properties too i.e. current rate x carpet area ?
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  • whether it is carpet, built up or super built up, doesn't matter, final cost of will remain the same, whether you consider 25 or 30% loading, it doesn't matter, if you ask them for 10% loading, they will charge you more psf and overall cost would be same. In Mumbai, they are charging 40% loading openly. Main thing is calculation of carpet area should be correct and the buyer should get exactly that carpet area.
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