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Erection of extra floor by developer

real estate property contracts

Buyers must be aware of their rights and the legal implications when a developer decides to add an extra floor to a building, as this can lead to breaches of contract, diminished property value, and share of communal spaces. Recent Supreme Court decisions have upheld buyers’ rights to terminate agreements, seek refunds, and claim damages in such situations, emphasizing the importance of contractual obligations in property transactions.

What are the legal implications for a developer adding an extra floor to a building?

The addition of an extra floor to a building by a developer can constitute a material breach of contract, permitting buyers to terminate the agreement. Such a unilateral alteration impacts property value, communal space shares, and the building’s integrity. The Supreme Court validates buyers’ rights to reclaim their investment and additional incurred damages.

Legal Implications of Alterations in Building Plans

When it comes to real estate development, any changes to the agreed architectural plans can have significant legal repercussions. A case in point is when a developer unilaterally decides to add an extra floor to a building that is under construction. This act not only violates the sales agreement but also impacts the value of the property and the proportional share of communal areas for existing buyers.

The buyers, upon learning of such alterations, are within their rights to withdraw from the purchase agreement. This is not merely a matter of preference but a legally supported position. The original agreement outlines clear details regarding the floor on which the apartment will be located, the number of floors in the building, and an explicit attachment of the architectural plans. Any deviation from these terms can be interpreted as a material breach of contract.

The Power of Buyer’s Discretion

The buyer’s decision to terminate the agreement is backed by more than just the immediate breach. It is a culmination of reduced property value, diminished shares in the building’s common areas, and the irrevocable alteration of the building’s planned aesthetic and functional integrity.

In a recent Supreme Court decision, this stance was validated, highlighting the importance of the initial agreement and the accompanying plans. The court noted that the purchase was not simply for the apartment unit but also included a defined interest in the shared elements of the property. Introduction of an additional floor, therefore, results in a reduction of the communal space allocated to each unit, a clear departure from the terms mutually agreed upon at the time of sale.

Supreme Court’s Stance on Property Contracts

The apex court’s decision in this matter sets a critical precedent. It underscores the binding nature of the architectural plans and the shared understanding they represent between buyer and seller. By enforcing the construction of the additional floor, regardless of subsequent permits obtained, the developer is seen as having violated the essence of the original contract.

The court’s ruling further emphasized that the fulfillment of the contract, as originally agreed, is paramount. Any breach warrants not only the return of monies to the buyer but also compensation for consequential losses, including legal expenses. The court’s approach seeks to restore the affected party to the financial and contractual position they would have held had the breach not occurred.

Recourse for Affected Buyers

Those impacted by such contract violations have clear recourse. Upon the lawful termination of the agreement, buyers can reclaim the entirety of their investment along with any additional damages incurred as a result of the developer’s breach.

This includes a complete refund, legal fees, and court costs, all of which acknowledge the tangible losses and the disruption of the buyer’s expectations. The legal framework provides a solid foundation for buyers to protect their interests and seek remediation when developers do not adhere to the agreed terms of construction and sale.


For individuals navigating the intricacies of property agreements, it is crucial to be vigilant and ensure that contracts are meticulously detailed. In the event of a dispute, the judicial system provides a pathway to rectify the wrongs and uphold the sanctity of contractual obligations.

Can buyers terminate the agreement if a developer adds an extra floor to a building?

Yes, buyers have the legal right to terminate the agreement if a developer unilaterally decides to add an extra floor to a building under construction. This action constitutes a material breach of contract, allowing buyers to seek termination, refunds, and damages as outlined in recent Supreme Court decisions.

What legal implications arise from alterations in building plans by developers?

Any changes to the agreed architectural plans by developers can have significant legal repercussions. Adding an extra floor to a building violates the sales agreement, diminishes property value, impacts communal space shares, and breaches the contractual obligations between buyers and developers. Buyers have the right to terminate agreements and seek remedies for damages incurred.

How does the Supreme Court view breaches of property contracts related to alterations in building plans?

The Supreme Court views breaches of property contracts related to alterations in building plans, such as adding an extra floor, as material breaches that warrant termination of agreements, refunds, and compensation for damages. The court emphasizes the importance of upholding the original terms of the contract and the architectural plans agreed upon during the property transaction.

What recourse do affected buyers have in cases of contract violations by developers?

Affected buyers have clear recourse in cases of contract violations by developers, such as adding an extra floor to a building. Buyers can lawfully terminate agreements, reclaim their investment, seek refunds, and claim damages, including legal fees and court costs. The legal framework provides a foundation for buyers to protect their interests and hold developers accountable for breaches of contract.

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