Advertised Floor Area vs Measured Floor Area

I am a purchaser of an OTP apartment. The building would be ready for occupation in Mar 2021.

I was informed by the developer via Whatsapp chat that the unit is of approximately 136 sqm . In reality, I understand there may be a few percentage difference due to the construction issues and variations during the course of works on site. For furniture shipping from overseas and planning purpose, I asked for a dimensioned unit plan from the developer. Unfortunately I was advised by the developer that a dimensioned unit plan would not be provided to purchasers, though it is readily available in the architect’s office. In return, I was informed I should take measurements by myself once the apartment is occupied.

It comes to my attention that the completed floor area might be substantially smaller than that of the specified/advertised area, for example 10% or 10 sqm less than the advertised floor area.

Would any one offer comment and advice if it does happen after site measurement during pre-settlement inspection.

 

So many ways to define what is measured. Verandah? Storage space? Parking? Do the internal walls count? What about external walls? Each dev might have a different methodology. I've heard people say for example: 0% of external walls, 50% of internal. Or 50% of external, 100% of internal. My personal approach: only livable space counts. Internal walls are 0 to me. If you can't literally put something there, it doesn't count. But this isn't how the devs may see it. I don't know what the law says, or whether the law is different in each state. I'd love to know as I have properties in every major city and I never know how to answer the question of how big my property is. There is the developer answer and then there's the realistic human-having-to-live-in-it answer...and then there is the truth, which is probably somewhere in the middle.

 

It is understood usable floor area, excluding shared common areas like lift shafts, common corridors and staircases, walls and columns etc, is the selling floor area by developer in Australia, if I am correct

 

Also, the developer would have in the contract that they can have variations up to 10%.
So it'd be pretty hard to dispute unless it was substantially more.
Your only chance would be to measure the unit at the settlement inspection, but they usually rush you thru !

 

Thanks Stoffo,

I took your advice and booked for a pre-settlement inspection already.

I gone through the contract of sale. There is a Clause in the contract that

" The Purchaser agrees that without limitation an amendment to the Plan which results in a change to the area of the Property of less than 5% is a minor variation or discrepancy and does not materially affect the Land. "

I did an initial measurement according to an original scale A3 plan. It is found that the desk measurement is 9% less or 13 msq. less than that of the advertised

Wonder if I should hire a chartered professional surveyor to carry out a site measurement, and then present the report to the developer.

Thanks in advance for your comment and advice.

 

As there is ascope for this to become a legal issue advice from a property focussed construction solicitor may be wise. They may recommend who does the inspection

 

clicking measurements from a PDF is not accurate

when a Surveyor prepares a draft strata subdivision plan, areas are often deduced from electronic architectural plans like Autocad. The plan is sometimes used by developers for marketing or DA lodgement.
Once the building is constructed the Surveyor will go back to site and take general measurements to confirm the building is constructed in accordance with the draft and make any amendments necessary.

Sometimes the design doesn't quite work and the builder will make minor adjustments along the way. A wall size is increased in width, a larger service duct is added etc etc. Buildings are not constructed with the precision of a surgical instrument. hence the clause in your contract.

The areas shown are approximate. And are shown to whole numbers (no decimals), and are often truncated (not rounded to nearest integer).
NSW LRS recognises that they may not represent the useable floor areas available
for rental purposes, and the Surveyor will place a statement on the plan such as,

‘Areas shown on the floor plan are approximate and calculated for the
purpose of the Strata Schemes Development Act 2015 only. They may differ
from measurements of floor area for other purposes’.

Victoria probably has something similar

an accurate area can be carried out by a Surveyor in accordance with the 'Property Council Guidelines" as used for commercial leases. but this will be very costly and unnecessary and not relevant to a Strata Plan registration, unless of course you believe there is a gross error.

 

Entirely agreed in realty that builder and architect may not work exactly to the drawings in order to cope with site difficulties, to catch up with construction progress. They have to make amendments to accommodate site conditions, especially for below-ground works.

BMC, please advise according to normal practice in Sydney or Melbourne the tolerance (in percentage) that is considered reasonable, and gross error (in percentage) that is considered not acceptable.

Precisely, 5% is allowed in my Contract of Sale. 9% is noted according to original A3 plans to be registered. Physical site measurement will be carried out during a pre-settlement inspection in early March.