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HARSH SHARMA (SERVICE)     11 October 2011

Carpet area mentioned in agreement

I bought a resale flat in Thane.

The agreement mentions a carpet area of 498sq ft while the builders demand letter mentions the area of the flat as 670 sq ft (build-up).
my question is : If i have to sell this flat, will i be compelled to sell it on the basis of carpet area?
The amount that i paid to the seller was build-up area (670 sq ft) x psf rate. Hence, if i am compelled to sell it on the basis of carpet area sa mentioned in the agreement, i will be at a loss.
 

The only document where the build-up area mentioned is the demand letter (the original of which is with the bank that gave me the loan).

Kindly advise...



Learning

 6 Replies

Joy Dey (Advocate)     11 October 2011

Carpet Area: This is the area of the apartment that does not include the area of the walls i.e. the area of the apartment that a carpet can cover.

Built-Up Area: This is the area of the apartment that includes the area covered by the walls.

 

Practically, you cannot have the same carpet area and built-up area for the reason/difference explained above. Therefore, in your case, the flat having 498sq. ft. of carpet area should measure upto the same as the flat having 670 sq. ft. of built up area. The key is to revise the price (@ Rs. xyz per sq. ft.) to calibrate the two units of measurement at the time you intend to sell it further.

 

Further, when you register the flat in your own name, i.e. the Sale Deed, the price will be mentioned there. You may clarify the unit of measurement in the Sale Deed, and the same shall form the basis of calculation when you wish to sell the flat to someone else.

 

Hope the above helps.

 

Rgds/Joy


(Guest)

What if builder does't mention carpet area in Allotment letter or any other communication?

At the time of propery registration builder told me carpet area which was less than 65% of built-up area (for which he charged me). Initially they had told verbally that the carpet area would be 70%. Registry is already done.

GANESH (SR ENGINEER PURCHASE)     22 April 2013

Hello,

 

I am in procees of making agreement for my new flat...my new flat total built up area is 443 sq ft & carpet area is 381 sq ft  and agreement value is with respect to built up area but builder is not mentioning built up area as he is mentioning only carpet area....is it logical with respecte to our property law?

pl help me in this case

Joy Dey (Advocate)     22 April 2013

@Ganesh:

 

Carpet Area and Built-up area are units of measurement. Its like saying that a rope is 10 feet or 3 meters.

 

As far as pricing of the flat is concerned, in my opinion it is not a legal issue, but rather a commercial matter. Whether the price of a flat/apartment is calculated on the basis of carpet area or built-up area, is a matter of negotiation. This would depend on the market rate and other such factors.

 

What would be useful for you is to keep one common yardstick (based on the most commonly followed yardstick in your area), and convert the price to that formula. Then consider if the price is too high or too less.

 

Hope this helps.

GANESH (SR ENGINEER PURCHASE)     22 April 2013

Hello Mr Joy,

 

Thanks for your prompt reply...

Request you to below things in details...

Total Built up area is 443 sq ft

Carpet area -343 sq ft

Builder is mentioning agreement value with respect to 443 sq ft built up ares..(443 * market rate ) but not mentioning 443 sq ft area in agreement....he is mentioning 343 sq ft as a carpet area only ..

Also carpet area is 343 sq ft...but if i see layout plan the carpet area come 295 sq ft..is it always carpet area less 50 sq ft from layout plan?

Joy Dey (Advocate)     22 April 2013

@ Ganesh: Your queries were already answered in my post above, but it seems you have not been able to understand it. I will try to explain again, but strongly recommend that you seek legal counsel to get professional advise.

As per your first query, if the builder/seller is negotiating the price of the flat in terms of built-up area, then you should insist that the agreement should mention the same. If he is keen to mention the area in terms of carper area in the agreement, then calculate the proportional value in terms of carpet area and see if the price is agreeable for you.

For example, if market rate for built-up area is Rs A/sq.ft., and that of carpet area is Rs.B/sq.ft., then you should calculate whether :   (Rs.A X 443)   >  (Rs.B X 343).  In any case, at the end of the day, what matters is are you willing to pay the asking price, whether it is calculated on the basis of built-up area or carpet area? If not then cancel the deal, its quite simple.

As per your second query, its more of an civil engineering question, and not really a legal question. I would guess, if you are an engineer, you would be in a better position to answer that.

 

Originally posted by : GANESH

Hello Mr Joy,

 

Thanks for your prompt reply...

Request you to below things in details...

Total Built up area is 443 sq ft

Carpet area -343 sq ft

Builder is mentioning agreement value with respect to 443 sq ft built up ares..(443 * market rate ) but not mentioning 443 sq ft area in agreement....he is mentioning 343 sq ft as a carpet area only ..

Also carpet area is 343 sq ft...but if i see layout plan the carpet area come 295 sq ft..is it always carpet area less 50 sq ft from layout plan?

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