The proper way of measuring condominium's floor area 

Many developers have different ways of measuring a house area, which dictate the price of the project.  The rule of thumb is that the bigger the unit, the more expensive it gets.

For a house-and-lot project, it is easy to determine the lot size, but the calculation becomes more complicated when it comes to the floor area.  The same is true for a condominium unit, whose price is heavily dependent on the floor area.  

But checking the a condo unit's floor area is also subject to different interpretations, and it is important for the buyer and the developer to clarify this before the actual sale.  There are many cases when the buyer would be surprised to find that the unit is smaller than they expected.  This triggers a legal dispute that may be costly both on the side of the buyer and the seller.

Among the important building features that affect the size of the condo unit are balconies, staircases, hallways, thickness of the columns, walls and divisions, as well as doors and windows.  Apart from that, the size of the unit is also measured vertically or in terms of the height of the ceiling.

Henry Yap, a top Filipino architect and real estate practitioner, says local laws and international standards provide proper guidance on how to measure the floor area.

Among these laws are Presidential Decree No. 1096 (National Building Code of the Philippines), Republic Act No. 386, as amended (Civil Code of the Philippines) and Republic Act No. 4726 (Condominium Act).  

Under PD 1096 or The National Building Code of the Philippines, floor area refers to “the area included within the surrounding exterior walls of a building or portion thereof, exclusive of vent shafts and courts. The floor area of a building or portion thereof not provided with surrounding exterior walls shall be the usable area under the horizontal projection of the roof or floor above”.  

Meanwhile, RA 4726 or the Condominium Act says "the boundary of the unit granted are the interior surfaces of the perimeter walls, floors, ceilings, windows and doors thereof."

It adds:b"The following are not part of the unit – bearing walls, columns, floors, roofs, foundations and other common structural elements of the building; lobbies, stairways, hallways, and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air-conditioning equipment, reservoirs, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits, wires and other utility installations, wherever located, except the outlets thereof when located within the unit. “   

Areas included  

Under the Building Code and the Condominium Act, developers adopted the liberal measurement provisions from globally-accepted references prepared by the American National Standards Institute, Building Owners and Managers Association International, and International Property Measurement Standard, among others.  

Based on these standards, the floor area can be defined as the total area bounded by the exterior surface of all exterior walls, with wall thickness included, the center lines of the party walls separating one unit from another, and the exterior surface of the wall enclosing the condominium unit facing the corridor, utility or common area.  

The unit area is also defined as a gross figure and includes spaces like mechanical shafts or chases, or structural components found within the unit.  The space occupied by the stair is included in the calculation, it the unit occupies more than two floors.  

Developers agree that the plan measurements may be rounded off to the quarter, half or full integer.  

For measurement of balconies and other outdoor spaces, there are different interpretations. Some include the whole area in the total floor size, while others consider only half of the actual floor area. In some instances, developers exclude the balcony size in the total area calculation.  

Resolving the conflict  

In case of different interpretations, developers provide buyers with the definition and/or the measurement methodology used, often found in the master deed of restrictions or equivalent document.

A geodetic engineer or surveyor may also be hired to physically measure and validate the area based on the agreed definition.  

To resolve the argument, the Civil Code of the Philippines provides guidance.  If the sale is based on a lump-sum price and not at the rate of a certain sum per square meter or square foot, there should be no adjustment in the purchase price, even if there is a discrepancy in the area.   

If the sale document includes a statement that the total purchase price is based at a certain price per square meter or square foot, and the property handed over is bigger – the buyer may accept the area per the contract and reject the excess.

If the buyer accepts the whole area, the buyer must pay for the excess area at the contract’s price per square meter or square foot. However, if the property handed over is smaller – the buyer may choose between proportional reduction of the purchase price; or the recession of the agreement provided that the shortfall in the area not be less than one-tenth of the contracted area.  

Any action arising from these concerns shall prescribe within six months, counted from the date of delivery.