Punjab RERA Rules: Builder Cannot Charge Extra for Super Area Without Agreement

In a recent ruling, the Punjab RERA (Real Estate Regulatory Authority) has clarified that builders cannot charge homebuyers extra for any increase in carpet area or super area unless both parties have clearly agreed to it in the contract. This decision came after a legal battle between homebuyers from Rani Ka Bagh, Amritsar, and a builder based in Kalkaji, Delhi.

The builder and the homebuyers had signed an agreement where the carpet area was stated as 139.17 sq. meters (1498 sq. ft.), which was also registered with the RERA Authority. However, when the flat was handed over, the builder charged for the super area (2570 sq. ft.) instead of the carpet area. The homebuyers alleged that the builder had manipulated the RERA Model Agreement and charged Rs 7,056 per sq. ft. instead of Rs 6,190 per sq. ft., overcharging them by an extra Rs 75 lakh (75,64,032) through misrepresentation and without legal authority.

This dispute arose as the builder had neither adjusted the excess amount paid nor refunded the money to the homebuyers for the extra 1072 sq. ft. Despite the homebuyers' legal action, they ultimately lost the case in Punjab RERA. The RERA authority ruled that the builder could not have unilaterally charged homebuyers for any increase in carpet area or super area unless those charges were agreed upon in the buyer's agreement.

The reason the homebuyers lost the case is that the builder-buyer agreement clearly and categorically mentioned the total area to be sold, its rate, and price per square foot and per square meter. Punjab RERA emphasized that the homebuyers should have carefully read the terms and conditions before signing the agreement.

Punjab RERA gave this judgment on May 14, 2026, while the complaint had been filed by the homebuyers on December 11, 2023. The authority stated that the homebuyers failed to show if the referred demand or charges were in derogation of the terms and conditions mentioned in the Form prescribed. Punjab RERA also applied the principle of 'Caveat Emptor,' which means 'let the buyer beware.'

Punjab RERA said, “So, complainants (homebuyers) should have been vigilant enough about the terms and conditions duly mentioned in the agreement.” The authority also noted that the homebuyers failed to show that the charges imposed on them by the builder were contrary to the prescribed rules and framework. Applying the principles of Pacta sunt Servanda and Caveat Emptor, the Authority held that buyers who knowingly agreed to the pricing terms could not seek a refund of those amounts later.

Under the RERA model agreement, there is no concept of 'super area,' nor can anything be charged on the basis of super area or super structure. The RERA authority found that the total sale consideration of the unit has also been duly mentioned in the agreement signed by both parties. As such, whatever has been agreed upon and all the terms and conditions thereof must be followed by the parties to the agreement.

The RERA authority also said that the model agreement provided in the Rules does not seek to take away the freedom of contract by putting restraints on it. It only highlights the important and necessary contents of an agreement between buyer and builder, which must form part of it for bringing clarity and transparency in a sale transaction.

The Punjab RERA said that Form Q, which is the model agreement for sale provided under the rules, only requires that the total price for the apartment/plot based on the carpet area be clearly and distinctly mentioned by giving its break-up and clear description. This ensures that the breakdown of the consideration charged separately for the separate nature of the area to be sold is clarified. The model agreement does not put any restraint or impose any bar on the nature of the area to be sold.

If there are any conflicting terms in the builder-buyer agreement compared to the Form Q of the model agreement, it does not violate RERA law. The Punjab RERA stated that nothing can be charged for a unilateral increase in the carpet area or super area if it has not been agreed upon by the parties in the buyer's agreement, which must be in the form prescribed under Section 13(2) of the RERA Act.

The RERA rules, 2017, providing the model agreement, seek to supplement Section 13(2) of the RERA Act, which requires an agreement to be in the form as may be prescribed. The builder-buyer agreement needs to specify the particulars of the development of the project, including the construction of buildings and apartments, along with specifications and internal and external development works, the dates and manner by which allottees will make payments, the date of possession, and the rates of interest payable in case of default.

The RERA Authority pointed out that the Model agreement seeks to guide the parties for the sake of clarity of the things agreed upon so that in case of a dispute, the rights of the parties could be properly adjudicated upon and determined. Punjab RERA said, “It is thus held that all the terms and conditions of the agreement are binding, and nothing can be charged over and above those unless those are against the terms provided in the said Form Q or in conflict with those.”

In its order, Punjab RERA partly allowed the homebuyer’s complaint on the ground of delayed possession and ordered the builder to give interest from July 31, 2023, till January 18, 2024, by taking the interest rate as SBI’s highest MCLR rate plus 2% after adjustment of any pending dues payable by the buyers.