Section 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This is the second of three articles on section 2. It covers the clauses that describe what is built and sold: apartment, building, carpet area, common areas, garage, the development terms, estimated cost, sanctioned plan and planning area. Carpet area is the one most buyers ask about, because the Act measures the price and the agreement by it. For a dispute over area or amenities, our legal consultation service can help you read the agreement against these definitions.
Carpet area (2(k)) is the net usable floor area of an apartment. It excludes external walls, service shafts, exclusive balcony or verandah and exclusive open terrace, and includes the area covered by internal partition walls. Common areas (2(n)) cover the land, staircases, lifts, basements, parks, installations and anything else in common use. A "real estate project" always carries its common areas and development works with it. The clauses here are 12 of the 44 in section 2.
Clauses covered in this article
| Clause | Term |
|---|---|
| (e) | apartment |
| (j) | building |
| (k) | carpet area |
| (n) | common areas |
| (s) | development |
| (t) | development works |
| (v) | estimated cost of real estate project |
| (w) | external development works |
| (y) | garage |
| (zb) | internal development works |
| (zh) | planning area |
| (zq) | sanctioned plan |
The other clauses are in the article on who is who and the article on authorities and other terms.
Clause (k): carpet area
"Carpet area" means the net usable floor area of an apartment, excluding:
- the area covered by the external walls;
- areas under services shafts;
- the exclusive balcony or verandah area; and
- the exclusive open terrace area,
but including the area covered by the internal partition walls of the apartment.
The Explanation defines the two exclusive areas. "Exclusive balcony or verandah area" is the balcony or verandah appurtenant to the net usable floor area of the apartment, meant for the exclusive use of the allottee. "Exclusive open terrace area" is the open terrace appurtenant to the net usable floor area, meant for the exclusive use of the allottee.
| Part of the unit | In carpet area? |
|---|---|
| Rooms, kitchen, toilets inside the apartment | Yes (net usable floor area) |
| Internal partition walls | Yes, expressly included |
| External walls | No |
| Service shafts | No |
| Exclusive balcony or verandah | No |
| Exclusive open terrace | No |
Example. A flat advertised as 1,000 square feet "super built-up" has a net usable floor area of 700 square feet. Its carpet area is 700; the Act does not use "super built-up" area. See our post on carpet area calculation under RERA.
The text gives no method of measurement or tolerance; the State rules and the agreement deal with that, and they differ by State.
Clause (e): apartment
"Apartment" is wide. Whether called block, chamber, dwelling unit, flat, office, showroom, shop, godown, premises, suit, tenement, unit or any other name, it means a separate and self-contained part of any immovable property, including one or more rooms or enclosed spaces, on one or more floors or any part of them, in a building or on a plot of land, used or intended to be used for any residential or commercial use such as residence, office, shop, showroom or godown, or for carrying on any business, occupation, profession or trade, or any ancillary use.
So commercial units are inside "apartment". Our post on RERA for commercial projects covers that point.
Clause (j): building
"Building" includes any structure or erection or part of a structure or erection intended to be used for residential, commercial or business, occupation, profession or trade purposes, or any related purposes.
Clause (n): common areas
Common areas mean eight items:
- the entire land for the real estate project, or, where it is developed in phases and registration is sought for a phase, the entire land for that phase;
- staircases, lifts, staircase and lift lobbies, fire escapes (printed "fir escapes"), and common entrances and exits of buildings;
- common basements, terraces, parks, play areas, open parking areas and common storage spaces;
- premises for lodging persons employed for management of the property, including watch and ward staff or community service personnel;
- installations of central services such as electricity, gas, water and sanitation, air-conditioning and incinerating, and systems for water conservation and renewable energy;
- water tanks, sumps, motors, fans, compressors, ducts and all apparatus connected with installations for common use;
- all community and commercial facilities as provided in the real estate project;
- all other portions of the project necessary or convenient for its maintenance, safety, etc., and in common use.
Note that item (i) puts the land itself within common areas. The common areas are also part of "real estate project" under 2(zn), so they come under the promoter's obligations. The text does not set the allottees' share in common areas; that is for the agreement for sale (see mandatory clauses).
Clause (y): garage
"Garage" means a place within a project having a roof and walls on three sides for parking any vehicle, but does not include an unenclosed or uncovered parking space such as open parking areas. Open parking areas are common areas under (n)(iii).
Development clauses: (s), (t), (w), (zb)
| Clause | Meaning in short |
|---|---|
| (s) development | Carrying out development of immovable property, engineering or other operations in, on, over or under land, or any material change in immovable property or land; includes re-development |
| (t) development works | The external development works and internal development works on immovable property |
| (w) external development works | Roads and road systems, landscaping, water supply, sewerage and drainage, electricity supply transformer, sub-station, solid waste management and disposal, or any other work in the periphery of, or outside, a project for its benefit, as may be provided under the local laws |
| (zb) internal development works | Roads, footpaths, water supply, sewers, drains, parks, tree planting, street lighting, community buildings, treatment and disposal of sewage and sullage water, solid waste management, water conservation, energy management, fire protection and fire safety, social infrastructure such as educational, health and other public amenities, or any other work in a project for its benefit, as per sanctioned plans |
External works are linked to "local laws" and internal works to "sanctioned plans". Clause (w) as printed has spelling slips ("seweage", "suply"); the meaning is unaffected.
Clause (v): estimated cost of real estate project
It means the total cost involved in developing the real estate project and includes the land cost, taxes, cess, development and other charges. Later sections that speak of the cost of the project use this term; for the money side of a project, see our post on the 70 percent separate account.
Clause (zq): sanctioned plan
"Sanctioned plan" means the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan and such other plan, and includes structural designs, if applicable, permissions such as environment permission and other permissions, approved by the competent authority prior to start of a real estate project. Section 14 requires the promoter to develop according to this plan.
Clause (zh): planning area
"Planning area" means a planning area, development area, local planning area or regional development plan area, by whatever name called, or any other area specified as such by the appropriate Government or any competent authority, including any area designated to be a planning area for future planned development under the law on Town and Country Planning, as revised from time to time. Section 3(1) applies registration to projects "in any planning area".
Need help with area or amenities in your agreement?
If your builder's brochure, agreement and sanctioned plan do not agree on area, parking or common amenities, the definitions above are the starting point for the claim. Our legal consultation team can compare your papers with clauses (k), (n) and (zq) and advise on the next step.
Key takeaways
- Carpet area is the net usable floor area, with internal partition walls included and external walls, shafts, exclusive balcony and exclusive open terrace excluded (2(k)).
- "Apartment" covers shops, offices and showrooms as well as flats (2(e)).
- Common areas include the project land, lifts, staircases, parks and installations (2(n)).
- A garage has a roof and walls on three sides; open parking is not a garage (2(y)).
- A sanctioned plan must be approved by the competent authority before the project starts (2(zq)).
Read next
- Section 2: who is who (promoter, allottee, agent, project)
- Section 2: authority, completion certificate, interest and other definitions
- Carpet area under RERA: definition and calculation
- Agreement for sale under RERA: mandatory clauses
Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.