According to the Shahrebours, the purchase and sale of land, gardens, and residential units are among the most common real estate contracts in the country, and especially in metropolitan cities, the high volume of these transactions has led to an increase in disputes between buyers and sellers. One of the most important and common of these disputes is the difference between the actual area of ​​the property and the area specified in the contract; an issue that is becoming more apparent than ever with the advancement of surveying technologies and accurate recording of registration information.

The nature of the area dispute

An area dispute occurs when the parties to the transaction agree on a specific area of ​​the property, but after the document is drawn up or the property is delivered, it is determined that the actual area is less or more than the agreed amount. In such a situation, based on the provisions of the contract and relevant legal articles, one of the parties may have the right to terminate or claim damages.

In the past, most transactions were done “limit to limit” and a difference of a few meters was not so important, but now, with the high accuracy of measuring instruments and aerial photography, even a difference of a few meters can be the beginning of a legal dispute.

Buyer’s rights in case of a shortfall in area

According to Article 355 of the Civil Code, if a property is sold with the condition of having a certain area and it is later found that the actual area is less, the buyer has the right to terminate the transaction. He can break the transaction and take back the payment or, instead of terminating, demand the difference in price from the seller. Also, according to Articles 385 and 386 of the same law, in case of termination, the seller must, in addition to returning the transaction amount, also pay the buyer’s normal expenses and costs.

Seller’s rights in case of an increase in area

In a situation where it becomes clear after the transaction that the actual area of ​​the property is greater than the amount specified in the contract, this time the seller has the right to terminate; unless the parties agree that the buyer will pay the additional area.

The Law on Percentage of Error in Pre-Sale of Buildings

In the Pre-Sale of Buildings Law, the legislator has set a range for measurement errors to prevent disputes. According to Article 7 of this law, if the actual area is five percent less or more than the figure stated in the contract, neither party has the right to terminate.

However, if the increase is more than five percent, the buyer can terminate the transaction, and if the actual area is less than 95 percent of the agreed amount, the buyer has the right to terminate or receive compensation based on the daily rate. If the seller refuses to pay compensation, the buyer can file a lawsuit with the court where the property is located.

The process of following up and filing a complaint

In the event of a discrepancy in area, the buyer must file a lawsuit with the court where the property is located. If the seller has intentionally provided incorrect information, the matter can become criminal; otherwise, it will be pursued through legal actions in the electronic judicial services offices.

The judge in the case examines whether the area was one of the essential features of the transaction. If the area is considered one of the main elements of the contract, in addition to the right to terminate, the buyer can also demand costs such as expertise, agency fees, the cost of preparing an official document, and other common expenses.

A solution to prevent disputes

Disputes over area are one of the most challenging issues in real estate transactions and can be costly for both parties to the transaction. Legal experts emphasize that the best way to prevent these problems is to carefully draft the contract by mentioning the technical and registered specifications of the property, use an official judicial expert to measure the area, and take legal advice before signing the contract. These measures can prevent disputes and heavy losses in the future.