Off-the-plan contracts: Is a 4.4% variation enough to rescind?

Most off-the-plan property contracts contain terms that permit a 5% variation in the final area of the property to that shown on the disclosure plans given to the buyer pre-contract. The intention of those contract terms is that the buyer must accept the variation in area and is not allowed to withdraw from the contract or seek compensation from the developer as a result of the increase or decrease in the area of the property.

This 5% tolerance is generally accepted by developers and buyers alike as the benchmark for determining whether a change will materially prejudice the buyer and there is often a specific term in the contract, in which the buyer acknowledges that the buyer will not be materially prejudiced by any change in the area of 5% or less.