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Builder's warranty under RERA
Builder's warranty under RERA
The Real Estate Regulation Act (RERA) of 2016 has specified certain regulations under “builder’s warranty” which make the builder/developer responsible for repairing structural damages/defects that occur for the first five years from the date of transferring possession.

A new home is a costly investment and also a long-term one. When one buys a house, they expect it to be damage-free and want it to remain similar for the coming years. Many buyers are choosing homes with warranties that cover repair or replacement of some elements of the home.

The Real Estate Regulatory Act (RERA) of 2016 has specified certain regulations under what is called the "builder's warranty".

As per Clause 14(3) of the act, "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 the promoter's failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner provided under this Act."

The implication of this is that the expenses incurred towards damages and repair work will be borne by the developer for a period of five years from the date of transferring possession. Whatever the complaint (within the precincts of construction concerns), the developer needs to address it within 30 days of being notified of it. In case he refuses to comply, the home-buyer is eligible for compensation under RERA.

Offering 'builder's warranty' or security against poor construction will benefit buyers as developers will be encouraged to ensure quality projects. This will help avoid higher cost overruns possible at a later stage. For developers, too, it may be a good thing. This provision could act as a market differentiator to differentiate reliable developers from non-serious players. But, this also means that the developers will have to keep a track of agencies/contractors they conduct(ed) business with.

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RERA NUMBERS
maharera-icn
Maharashtra
A51900000277
karnatakarera-icn
Karnataka
PRM/KA/RERA/1251/309/AG/220521/002898
delhirera-icn
Delhi
DLRERA2022A0103
haryanarera-icn
Haryana
RC/HARERA/GGM/1932/1527/2022/300
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