Hindustan Times (Bathinda)

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

- Munieshwer A Sagar n munieshwer.sagar@hindustant­imes.com

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.

 ?? HT FILE ?? A housing project in Gurgaon. The common areas in a housing project are the spaces shared by the allottees and used for different purposes; and (below) a view of a living room in an apartment.
HT FILE A housing project in Gurgaon. The common areas in a housing project are the spaces shared by the allottees and used for different purposes; and (below) a view of a living room in an apartment.
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