In a significant ruling for homebuyers, the Punjab Real Estate Regulatory Authority (Punjab RERA) has clarified that builders cannot unilaterally charge buyers for increases in carpet area or super area unless such charges are specifically agreed upon in the builder-buyer agreement. However, the authority also emphasized that buyers who knowingly sign agreements containing such terms may find it difficult to challenge those charges later.

The ruling came in a dispute involving homebuyers from Rani Ka Bagh, Amritsar, and a Delhi-based builder. The case highlights the importance of carefully reviewing property agreements before signing and offers clarity on how RERA views disputes involving carpet area, super area and pricing terms.

The dispute

According to the complaint, the builder and the buyers had entered into an agreement for a residential unit with a carpet area of 139.17 square metres (1,498 sq ft), which was also registered with the RERA authority.

The dispute arose when possession of the flat was handed over. The homebuyers alleged that the builder calculated the final cost based on a super area of 2,570 sq ft instead of the carpet area mentioned in the agreement. They further claimed that the builder charged ₹7,056 per sq ft instead of ₹6,190 per sq ft, resulting in an alleged excess recovery of over ₹75 lakh.

The buyers argued that the builder had altered the spirit of the RERA model agreement and collected additional money through misrepresentation. They sought a refund of the amount allegedly charged for the extra area.

MUST READ: Planning to buy property in Dubai? What do new investor visa rules mean for homebuyers?

What did Punjab RERA say?

Punjab RERA acknowledged an important principle: a builder cannot impose additional charges for any increase in carpet area or super area unless such charges have been agreed upon by both parties in the buyer's agreement.

The authority observed that no amount can be charged over and above what has been contractually agreed, unless the agreement itself provides for such adjustments. At the same time, Punjab RERA noted that all terms and conditions contained in a validly executed agreement are binding on both parties.

Why did the homebuyers lose?

Despite making observations in favour of contractual transparency, Punjab RERA ruled against the buyers on the refund claim.

The authority found that the builder-buyer agreement clearly mentioned the total area being sold, the applicable rates and the overall sale consideration. Since the buyers had signed the agreement after accepting these terms, Punjab RERA held that they could not later seek a refund merely because they disagreed with the pricing structure.

The authority invoked the legal principle of "Caveat Emptor" or "let the buyer beware," stating that purchasers must exercise due diligence and understand contractual terms before signing. It also relied on the principle of "Pacta Sunt Servanda," which means agreements lawfully entered into must be honoured.

MUST READ: Adani, Reliance, Lodha, JSW in race for 200-acre Mumbai redevelopment projects

What about super area under RERA?

Punjab RERA also noted that the RERA model agreement does not specifically recognize the concept of "super area." Instead, it requires the carpet area and price breakup to be clearly disclosed for transparency. However, the authority clarified that the model agreement is intended as a framework and does not completely restrict contractual freedom between buyers and builders.

MUST READ: Can BKC hold on to its crown as Mumbai’s costliest, most in-demand office hub?

Relief granted

While rejecting the claim for refund of area-related charges, Punjab RERA partly allowed the complaint on the issue of delayed possession. The authority directed the builder to pay interest for the delay period from July 31, 2023, to January 18, 2024, calculated at SBI's highest MCLR plus 2%, after adjusting any outstanding dues.

The ruling serves as a reminder that while RERA protects buyers against arbitrary charges, understanding every clause of a property agreement remains critical before making one of life's biggest financial commitments.

Published on: May 29, 2026 7:14 PM IST