DEFECT LIABILITY PERIOD UNDER REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016:
A Defect Liability period is a set period of time after the completion of a project and handing over the possession to the allottee, where the builder/promoter is held responsible/answerable to the allottees, for any kind of structural defects in the project and is duty bound to set right such structural defects within the given time and without any further collection of money / charge to the allottees.
The Real Estate (Regulation and Development) Act, 2016, which is laid down to establish regulation and promotion of the real estate sector in an efficient and transparent manner and to protect the interest of consumers in the real estate sector, has introduced a provision in which Act speaks/highlights on the “Defect Liability”.
Section 14 (3) of the Real Estate (Regulation and Development) Act, 2016 lays down that,
“In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act”.
One of the concerns in the real estate sector before this Act came into force was the quality of construction and sense of responsibility on the part of the builder/promoter towards the allottee. The builder/promoter was not bound by any Act or Regulations to check on the materials used for the construction and also quality of construction in a project building. The builder/promoter would not take any responsibility in rectifying the structural defects once the possession of the building was handed over to the allottee/s and allottee were forced to rectify the structural defects again by spending from his pocket, in spite of investing huge/heavy amount on the project building. There was no sense of security to the allottees in regard to the quality of construction on any project building constructed by the builder/promoter/s.
Section 14(3) of the Real Estate (Regulation and Development) Act, 2016, now eliminates the absence
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