Know RERA: Common areas under the Act
SHARED SPACES Common areas are shared areas among all allottees in real estate project; the Act and state rules define and regulate the use of these areas
Before the Real Estate (Regulatory and Development) Act fixed the carpet area as the basis of calculation of all other costs to be included in the total price, the general practice in the housing sector was pricing on the basis of the super area.
The super area, in addition to the carpet area, included the common areas. The common areas in a housing project, whether plotted or multi-storey group housing project, are the spaces shared by the allottees and are used for different purposes useful to all the allottees. These areas exist outside the carpet area or the property itself.
UNDERSTANDING COMMON AREAS
Under the Act, common areas comprise the entire land for the real estate project or where the project is developed in phases. It includes staircases, lifts, staircase and lift lobbies, fire escapes and common entrances and exits of buildings, common basements, terraces, parks, play areas, open parking areas and common storage spaces.
The premises for lodging of persons employed for the management of the property, including accommodation for watch and ward staffs or for the lodging of community service personnel, are also part of the common areas.
Areas where installations of central services such as electricity, gas, water and sanitation, airconditioning and incinerating, system for water conservation and renewable energy, water tanks, sumps, motors, fans, compressors, ducts and all apparatus connected with installations for common use are also covered under the Act definition of common areas.
All community and commercial facilities as provided in the project and all other portion of the project necessary or convenient for its maintenance, safety, etc and in common use are part of the common areas too.
TOTAL PRICE AND COMMON AREAS
Common areas are included in the total price of a property. The individual buyer holds of pro rata share in the common areas and pays for it. Builder has to disclose the proportionate cost of common areas to each buyer when mentioning the total price of the property bought by the buyer, stipulate the state RERA rules. For instance under the Punjab RERA rules, the allottee has the undivided proportionate share in the common areas.
“Since the share/interest of allottee in the common areas is undivided and cannot be divided or separated, the allottee shall use the common areas along with other occupants, maintenance staff etc., without causing any inconvenience or hindrance to them.
Further, the right of the allottee to use the common areas shall always be subject to the timely payment of maintenance charges and other charges as applicable. It is clarified that the promoter shall convey undivided proportionate title in the common areas to the association of allottees as provided in the Act,” state the Punjab State Real Estate (Regulation and Development) Rules, 2017.
FULL DISCLOSURE
The builder has to disclose details of approvals, permissions, clearances, legal documents regarding the common areas to the buyer and also to the state real estate regulatory authority. These approvals are to be update on the state RERA website.
Under the Act and the state RERA rules made thereunder, the builder has to update the status of the project on the project’s web page on the RERA website. For instance, in Haryana RERA rules, the promoter has to upload the updates of the status of construction of common areas with photographs on the web page for the project on the Haryana real estate regulatory authority web site within 15 days from the expiry of each quarter.
TRANSFER OF COMMON AREAS
The promoter has to abide by the time schedule for completing the project and handing over the apartment or plot to the allottee and the common areas to the association of the allottees after receiving the occupancy certificate or the completion certificate or both, as the case may be, stipulate state RERA rules.
The Act specifies that the promoter has to execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees and hand over the physical possession of property to the allottees and the common areas to the association of the allottees in the project. Also, transfer other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws. In the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees shall be carried out by the promoter within 3 months from date of issue of occupancy certificate.
After obtaining the occupancy certificate and handing over physical possession to the allottees it shall be the responsibility of the promoter to hand-over the necessary documents and plans, including that of common areas, to the association of the allottees. In the absence of any local law, the promoter has to handover the common areas to the association of the allottees within 30 days after obtaining the occupancy certificate, stipulates the Act.
MAINTENANCE OF COMMON AREAS
Till the conveyance of all the the common areas to the association of allottees, the promoter or the builder is responsible for all obligations, responsibilities and functions under the provisions of RERA Act, the rules and regulations made thereunder to to the association of allottees for the common areas.
Notwithstanding anything contained in any law, contract or agreement, after nature of common areas as approved by the competent authority, are disclosed or furnished to the buyer, the promoter cannot make any additions and alterations in common areas. Promoter can make minor additions or alterations in the common areas as may be required by the allottee, or as may be necessary due to architectural and structural reasons duly recommended and verified by an authorised architect or engineer after proper declaration and intimation to the allottees.
The builder cannot make any other alterations or additions in the common areas within the project including the common areas without the previous written consent of at least two-thirds of the allottees.
The builder/maintenance agency/association of allottees have rights of unrestricted access of all common areas for providing necessary maintenance services.
The allottee, as per the model sale agreement, has to give an undertaking, assurance and guarantee that it will not put any sign-board, name-plate, neon light or advertisement material etc. in the common areas.