Defect liability period: What every homebuyer must know?

Homebuyers often inspect their properties before taking possession. However, a buyer may notice a defect after moving into the new house. Take Shikha’s story, for example. She moved into a newly constructed apartment that she bought in Bangalore. A year later, she discovered that some of the bathroom tiles in her house had popped off. Instead of making the repairs herself and spending money from her pocket, she reported the issue to the builder, seeking a remedy. Shikha knew that it was the builder’s responsibility to address such defects occurring during the Defect Liability Period as stated in the RERA law. So, what is the Defect Liability Period?  

In this guide, we explain the Defect Liability Period and how buyers can benefit from it. 

What is the Defect Liability Period?

The RERA Act, 2016, includes a provision that is meant to protect homebuyers in cases where they find any defects within a defined period called the Defect Liability Period. As defined in the act, the Defect Liability Period is a five-year period, counting from the possession date, during which the developers are responsible for rectifying any construction defects in homebuyers’ property without any charges. 

The Defect Liability Period can be compared to a warranty period in products. Consider a warranty period offered by manufacturers of 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. 

Defect Liability Period as specified under the RERA law

The Defect Liability Period provision is mentioned in Section 14(3) of the Real Estate (Regulation and Development) Act, 2016. According to this provision, the developers are liable to rectify any structural defects that arise in the properties within five years from the date of possession. They have to bear the cost of the repairs done instead of charging the homebuyers. Moreover, if a developer fails to rectify such defects within 30 days, the buyer has the right to receive compensation as decided by the relevant state RERA. This provision is applicable to buyers of all residential and commercial properties. 

The term structural defects is not specifically defined under the RERA Act. However, some states have included their definition in their state RERA laws. Broadly, structural defects refer to any physical damage or defect in the property, such as cracks, faults, breakage, etc. Normal wear and tear is usually exempted from this provision. That is, the developer is not liable to rectify the defect or compensate the buyer if the defect is due to normal wear and tear occurring over the years. 

What type of defects are covered Defect Liability Period?

Section 14(3) of the RERA Act states that the developer is liable to rectify structural defects arising or any other defect in:

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

Buyers must note that some defects are not covered under this provision. These 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 an act of god

Rights and responsibilities of buyers when reporting defects 

To avoid financial loss, new homebuyers should inspect the property before finalising a purchase. They can hire professional property inspection services. Conducting property inspections at different stages is crucial. So, performing visual checks or a detailed inspection when taking possession can be beneficial. Similar inspections should be done after a few months or every year. This helps buyers in identifying potential structural problems in the property, which is crucial for their safety and reduces their liability for rectification. If a buyer notices a structural defect in the property, they should immediately notify the builder. If the defects occur within five years of possession, as mentioned in the RERA law, the builder has to provide a resolution. 

It is important to maintain documentation such as photographs or videos of the defects, written communication with the builder, inspection reports, etc. These documents are proof and prevent any disputes with the builder. 

If the builder fails to address the buyer’s concerns or rectify the defect within the timeline, the buyer has the right to approach the RERA or consumer court for a resolution. 

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). This provision is beneficial for new homebuyers and saves them from making costly repairs. However, homebuyers should be aware of their rights and responsibilities. They must report the defects in a timely manner and maintain proper documentation and proof. They should also keep in mind that only genuine defects, not arising from wear and tear or intentional damage, are rectified under this RERA provision. 

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