Defect liability period: RERA law every homebuyer must know

Most homebuyers wait for years to purchase their dream home. The journey involves financial preparation and legal formalities before one can take possession of a property. Developers, on their part, are bound by RERA law and other regulations. So, they are accountable for timely delivery and following the quality standards. However, buyers often want to know what happens if they notice a construction defect after moving in. A project could develop structural defects that may be initially hidden and start to appear after a buyer has taken possession of the house. Here is where the RERA helps homebuyers. There is a defect liability period mentioned in RERA law that states that it is the  builder’s responsibility to address such defects occurring during the specified period. In this guide, we explain the Defect Liability Period and how buyers can benefit from it.

What is the Defect Liability Period as per RERA?

The Defect Liability Period, as mentioned in Section 14(3) of RERA Act 2016, is a five-year period during which the developers are responsible for rectifying any construction defects in homebuyers’ property without any charges. It is the builder who must bear the cost of the repairs and not the homebuyer. The law also says that if the builder fails to resolve those construction defects within 30 days, the buyer should receive compensation as decided by the relevant state RERA. 

The Defect Liability Period can be compared to a warranty period in products like mobile phones, televisions, etc. If the product has any defects or issues in its functionality, excluding reasons like mishandling, the manufacturer will rectify the issue if it falls within the warranty period. Similarly, structural defects in a property are rectified by developers if such defects correspond to the Defect Liability Period.

The term structural defects is not specifically defined under the RERA Act. However, some states have included their definition in their state RERA laws. Structural defects are physical damage occurring in a property. Some common defects include cracks in wall or roofs, leakage issues, faulty wiring system, etc. Normal wear and tear is exempted under this provision. That is, if the defect is due to normal wear and tear occurring over the years, the builder is not liable for its rectification. 

What is the duration of the Defect Liability Period?

The Defect Liability Period is a provision that applies to residential and commercial properties. Depending on the nature of the agreement in specific cases, a 12 month-period is allowed for builders from the date of possession or completion. However, for residential projects under RERA’s ambit, the defect liability period is a five-year time frame considered from the date of possession. Builders must address any defect arising within this period. If a defect occurs or is brought to the notice of a builder after this five-year-period, a builder is not liable to rectify the defect free of cost. 

What type of defects are covered in the Defect Liability Period?

Under Section 14(3) of the RERA Act, developers are liable to rectify structural defects arising or any other defect in:

• Workmanship – refers to poor construction; for example, faulty flooring, roofing or plastering
• Quality – resulting from the use of poor quality of materials
• Provision of services – refers to defects related to plumbing, drainage, electrical system, etc.

Some defects are not covered under this provision, which include:

• Defects from normal wear and tear of the property
• Any installation or modification made by the buyer
• Willful or accidental damage done to the property
• Damages resulting from a natural calamity or acts of god

Rights and responsibilities of buyers when reporting defects 

Before finalising a house, it is important for homebuyers to conduct a physical inspection of the property. Visual checks done initially and then a detailed inspection, especially through a professional, can help buyers find potential defects that could pose major safety risks for them. Homebuyers must report any structural defect they notice immediately to the builder by sending a letter. They must give necessary details, including possession date and details of the defect. Buyers must keep relevant proofs such as photographs or videos of the defects, messages exchanged with the builder, inspection reports, etc., securely as these help prevent any disputes with the builder. A homebuyer has the right to approach the RERA or consumer court for a resolution in case the builder fails to address the defects or provide a resolution within the timeline. 

Housing.com POV

The RERA law was implemented to protect buyers’ interests and the Defect Liability Period is one of the provisions in the RERA Act that fulfils this objective. The Defect Liability Period is a provision given in the RERA law that makes the developers accountable for resolving structural defects in the properties within a specified period (five years from the date of possession). The provision also benefits builders. It allows them to resolve defects within the defined period and preserve their brand image, thus creating a transparent environment governed by the RERA. 

This provision is beneficial for new homebuyers and saves them from making costly repairs. Having knowledge of one’s rights and responsibilities as a buyer will help prevent expenses. Buyers should ensure to report defects in a timely manner along with relevant proof. Buyers must note that only genuine defects, except those arising from wear and tear or intentional damage, will be addressed by the developer.  

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