All You Need To Know About RERA Warranty Clause

Real estate
Real estate

Imagine putting your hard earned money into a property and finally able to shift into it only to find cracks and defects. Needless to say, it will be a dream turned into a horrible nightmare wherein you will find yourself running pillar to post to get the flaws corrected. Well, no more all thanks to RERA Warranty clause.

What Is RERA Warranty Clause?

According to clause 14 of Real Estate (Regulation & Development) Act, 2016, called Adherence to sanctioned plans and Defect Liability, the Promoter shall rectify/make good all structural or other quality related defects which are brought into its notice within 5 years, within a period of 30 days from notice. In the event of failure by the Promoter to carry out its defect liability, the aggrieved allottees shall be compensated accordingly. Read the full act here.

As of now, buyers are happy and satisfied to have a warranty, as it assures them of the product’s quality. Moreover, if any defect is detected, they now have an assurance is that the developer is liable to fix the problem.

What Does Warranty Clause Actually Cover?

As per RERA, the warranty clause will exclusively cover structural defects which are caused due to a deficiency in the building. It arises due to flaws in design or low-quality construction material or improper planning.

As implied, cracks in the foundation, plumbing issues, and other mechanical problems are now supposed to be rectified by the promoter.

Impact On Real Estate Market

Understandably, the buyers across the nation welcomed this home warranty clause wholeheartedly. On the other hand, the developers have also welcomed the move as such a clause weeds away the non-serious players as well as the prospective defaulters because of whom they were losing the of buyer’s trust.

Going further, the developers will have to work around this and create a process of sourcing the raw material from other vendors and delegating the construction to contractors in a more transparent manner.

Impact On Property Prices

With such home warranty in place, now that the developers have to take care of its loose ends to improve their quality construction, it is understandable that the prices of the property will go up a notch.

Buyers will be faced with premium-priced properties that come with stronger warranties. However, experts strongly believe that buyers will not mind paying a premium for properties with warranties since, in the absence of it, buyers have been the victims so far, forced to undertake repairs at their own cost in case of any defect in construction.


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