Karan was more than excited to step into his newly bought home with family. It was a dream come true for him and family to finally move into their own apartment. But alas! What awaited Karan was a shocking sight of various building defects and structural patterns gone wrong. There were cracks and dents in the apartment he was waiting to shift in to. It was a nightmare that Karan will now have to fix with additional investment and efforts from his side.
But wait, does he really have to run around to fix the mess? Well, not anymore! The RERA warranty act is there to protect Karan and others facing similar situations.
What is the RERA Warranty Clause?
In accordance with the clause 14 of Real Estate (Regulation & Development) Act, 2016, called Adherence to sanctioned plans and Defect Liability, the developer/builder shall rectify/make good all structural or other quality related defects which are brought to 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.
According to this clause, Karan needs to give notice to the builder citing the defects and he can be assured of repairs/ fixed within a month! That was something unheard of in the real estate industry. The RERA warranty will definitely boost buyer confidence by improving project quality and grievance redressal.
What Does the Warranty Clause Include?
The warranty clause includes any kind of structural defects such as dents, cracks, plumbing, or mechanical problems which might be a result of issues with the building or construction style. This may be also a result of design flaws, low-quality material, or inadequate planning.
What is the impact on industry?
Undoubtedly, this clause was extremely well received by the buyer community in the country. But what is heart-warming to see is the reaction from the builders. A majority of the builders too welcomed this Act because many of them believe that it’s a true differentiator for buyers to filter out fraud developers from the picture. A time frame of 5 years is a liability that companies with low brand values will hesitate to undertake.
Therefore, many of them view it as an opportunity to build on their brand name.
It’s an added advantage that now, builders will have to be cautious in procuring quality raw materials from vendors who are trustworthy.
What is the impact on prices?
With reassurance of quality and powerful legal guarantee, comes the downside of the Act. The developers have the extra burden of ensuring quality in buildings, therefore the prices of property will rise a little bit than normal, as a compensation for the trust lock.
Even though buyers might face a hike in the property prices, it’s definitely a better option than battling with uncertainty. If it’s a strong, legally backed transaction, the properties which might come at a premium will be totally acceptable to the community of buyers. Hence, the RERA Warranty Act is certainly a torch-bearer in the dark areas of real estate industry.