Understanding Carpet Area, Agreement Value and Additional Purchase Costs
Understanding Carpet Area, Agreement Value and Additional Purchase Costs
Direct Answer: When acquiring property in Mumbai, buyers must budget approximately 8% to 11% above the base agreement value for government duties and ancillary costs. In Maharashtra, statutory charges include 6% Stamp Duty (5% base + 1% Metro Cess), a capped ₹30,000 Registration Fee, 5% GST (only on under-construction units, 0% on ready properties with OC), and society share capital fees.
Numerical Cost Breakdown: ₹5 Crore Property in Mumbai
Below is a transparent cost table for a ready-to-move versus under-construction property with an agreement value of ₹5,00,00,000:
| Cost Item | Ready-to-Move Flat (With OC) | Under-Construction Flat (No OC) | Payment Recipient |
|---|---|---|---|
| **Base Agreement Value** | ₹5,00,00,000 | ₹5,00,00,000 | Developer / Seller |
| **Maharashtra Stamp Duty (6%)** | ₹30,00,000 | ₹30,00,000 | Govt of Maharashtra (IGR) |
| **Registration Fee** | ₹30,000 *(Capped max)* | ₹30,000 *(Capped max)* | Govt of Maharashtra |
| **GST (5% vs 0%)** | **₹0 (Exempt with OC)** | **₹25,00,000 (5%)** | Central & State GST Dept |
| **Legal Due Diligence & Search Report** | ₹50,000 – ₹1,00,000 | ₹50,000 – ₹1,00,000 | Real Estate Advocate |
| **Society Share & Formation Fees** | ₹1,50,000 – ₹3,00,000 | ₹2,00,000 – ₹4,00,000 | Housing Society |
| **Advance Maintenance (12 Months)** | ₹1,80,000 – ₹3,00,000 | ₹1,80,000 – ₹3,00,000 | Society Escrow |
| **Total All-Inclusive Outlay** | **₹5,34,10,000 (~6.8% extra)** | **₹5,59,60,000 (~11.9% extra)** | — |
Crucial Carpet Area Terms Explained
1. RERA Carpet Area (The Only Legal Metric)
By law, all builders in Maharashtra must sell strictly on RERA Carpet Area. It includes the net usable floor area plus internal partition walls. It excludes balconies, terraces, and external common walls.
2. Usable Carpet Area
Often quoted by brokers, this includes the RERA carpet area plus enclosed dry balconies and flower beds that have received BMC sanction. Always verify whether quoted numbers represent pure RERA carpet or usable area before comparing price per sq ft.
3. Super Built-up / Saleable Area (Legacy Term)
Before MahaRERA, builders added 30% to 50% "loading" for common staircases, lobbies, and lift shafts. MahaRERA strictly prohibits selling on super built-up area.
Frequently Asked Questions
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