Your Developer Might Super Fleece You!

Your developer might ‘super’ fleece you
A new concept real estate developers are throwing at unsuspecting customers is ‘super-super built-up area’. What does this mean and is there a safeguard against being cheated?

If you have recently invested in an under-construction project anywhere in the country, you need to read this carefully. When your real estate developer was explaining the project details and pricing to you, he may have explained how much you need to pay for something called ‘built-up’ and ‘super built-up’ area. ‘Super built-up area’ refers to the built-up area (such as inner walls of your home and lofts, etc.) plus the areas of common use such as lobbies and entrance foyer.

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At a later date, your developer will ask you to shell out additional costs for something you’ve not heard before: ‘super-super built-up area’. When you ask what this term means, you will be told that this is an increase in super built-up area made during the construction process. Or you may be told that after final construction, your flat has been given ‘extra area’, for which you have to pay.

Examine your agreement carefully. Does it make a mention of the developer being likely to increase area during construction? More significantly, have you given permission for the same in writing? If the answer is ‘No’ in both cases, you are not required to pay for the ‘additional area’.
It’s not as easy as it sounds
However, you may be in for a long battle with the developer. You may have invested in the house because you were initially told that paying up within a certain time frame would yield a discount. Most builders offer this initial discount and later recover it by imposing more payment for the purported extra area given to customers. They are careful to say that the increased area is not a higher carpet area, but a higher super built-up area. It is easy to get the carpet area measured by an architect or engineer, but it is next to impossible to compute the super built-up area. Developers capitalise on this fact when claiming extra payment.

Additionally, the developer will hold up the possession of your flat till you pay up the extra amount. Since you have already invested so much money and time in the project, and you wish to avoid lengthy court battles, so you end up paying the amount. Either way, the developer makes unscrupulous money off you.
Initially, this practice is said to have originated in Mumbai. However, it has spread amongst almost all developers in the country, most of whom are trying to recover their losses from other unsold projects.
How payment is normally calculated
Consider the carpet area of your flat, and deduct about 30% area from it – this is the built-up area. Now deduct a further 10% from this, and you will get the super built-up area. Multiply this area with the square feet rate the developer is quoting – this is the final price of the house. To this, add taxes, stamp duty and registration fees – this will be the amount you finally pay.