Understanding the defect liability period for residential projects
Defect liability period is a clause in builder buyer agreement that allows the buyer a protective window against any manufacturing defects.
Moving into a new house is a great feeling especially when one has waited a long time to finally relive the dream of owning a house. The number of sacrifices and endeavors one undertakes to possess a house can all go to ruin if the quality of construction is compromised by the builder.
When you are about to take possession of a new apartment from the builder, make sure to check all aspects of construction including wall plastering, fixture of faucets, taps and other installations. In case you find any defects, the builder is liable to get such construction defects corrected. Buyers should be aware of this right, which is a protective window from construction defects. That is, any defects due to builder’s irresponsibility are covered as defect liability period covered under the buyer-builder agreement.
What is defect liability period?
Defect liability period is a clause in builder buyer agreement that allows the buyer a protective window against any manufacturing defects ranging from one to three years after getting possession of the flat. When signing the builder-buyer agreement, make sure that defect liability period clause is included. Without this clause, the builder would not be legally obliged to offer any repairs.
There has been a rise in the number of cases where buyers and possession owners of various flats and residential apartments have used the defect liability period clause successfully. Under the existing clause, the builder or developer would have to get the manufacturing defect corrected to the satisfaction of the client from his own pocket.
Some builders and developers however are requesting an amendment in the clause where occupants of flat owners can get the defect repaired from their own pockets and deduct the amount to be paid as either external maintenance charges or any pending possession amount.
Defects Covered
Under the defect liability clause, all manufacturing defects are covered unless specifically excluded and listed in the agreement. This includes all structural works, cement structuring and plastering of walls, window panes, cracks in walls or thin covering of plastering in the walls of ceilings. The defect liability clause also includes all essential attachments that are provided by the builder. This includes all faucets, taps, sinks, showers, flush and other bathroom and kitchen attachments. It is however essential to note that the builder would be responsible for only manufacturing defects and not for defects caused by improper usage or wrong functioning of the faucets and attachments.
How to Invoke Defect Liability Clause?
The buyer must make sure to check each and every aspect of the house before taking possession. Once the buyer spot any apparent manufacturing defect that would come under the defect liability period clause, the buyer can take possession by signing the possession under protest form. This form enables the defect liability period clause seeking the manufacturer to initiate repairs of the defects in the apartment.
What is Possession “Under Protest”?
Possession “under protest” is a clause that allows buyers to take possession under protest and initiating the defect liability period clause. In simple terms, this means that the buyer has taken possession with the knowledge that there are defects and the manufacturer would be liable to get them repaired. Once you initiate the possession under protest agreement, make sure to take a receipt of the possession “under protest” letter with the builder’s official signature and details of company associates party to the sale agreement. In case, the builder does not get the manufacturing defects corrected, the buyer has the option to approach a consumer court for compensation and execution of repairs.
