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    What is the threshold for area shortages that require compensation?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    For the purposes of registration on the Real Property Register, the net area of the unit is used. A developer is only required to compensate the purchaser if the actual area of the unit is less than the net area by more than five percent (5%). If the shortage exceeds this five percent threshold, the compensation amount must be calculated based on the unit price that was originally agreed upon in the sale contract. Minor shortages below this threshold may not require compensation unless specified otherwise.

    Related Topics:

    5 Percent Area Rule
    Net Area
    Purchaser Compensation
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