According to Clause 14(3) of the Real Estate (Regulation & Development Act, 2016), the defect liability period, generally known as the home warranty, has been fixed to five years from the date of ownership (RERA). Imagine investing all of your hard-earned money in your dream home only to find cracks and other flaws when you finally move in. Running from pillar to post to have them fixed is undoubtedly a headache and extra expense.

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There was no recourse for buyers to get developers to remedy these damages prior to the passage of the Real Estate (Regulation & Development) Act, 2016 (RERA). RERA has not only altered how real estate is managed in India. But it has also addressed other concerns that in the past required in-depth discussion. One such issue is the home warranty. Where the builders’ obligation to provide workmanship for structural flaws has been extended to five years from two years in the past. A builder or developer is required by Clause 14(3) of the Real Estate Act to correct/repair any flaws brought to his attention by a homebuyer within five years of the date of ownership without additional cost. Additionally, the developer must fix the issue within 30 days of learning about it; if not, the harmed party will be reimbursed proportionately.

Most developers used to limit the time for repairs in their agreements to no more than two years in the past. However, the five-year warranty policy is the outcome of the new rule’s application. “In an industry like real estate where fly-by-night operators are known to outnumber reputable developers. A five-year defect liability period is surely an optimistic step as far as clients are concerned. These positive clauses reassure them of the quality of the goods.

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What is covered by a home warranty?

A home warranty covers structural flaws. Which are deficiencies in a building when the framework does not function as the homebuyer anticipated. It typically occurs as a result of a design error, subpar building materials or construction, or bad planning. Poor construction can lead to foundation fractures, plumbing problems, electrical and mechanical concerns, and leaks and moisture because of poor raw material quality. All of these problems are covered by the house warranty provision of the RERA. In order to avoid any problems down the road. The developer also maintains a close check on workers who are subcontracted to ensure everything runs properly.

How does the homeowner warranty safeguard new homeowners?

Regarding the house warranty provision of the RERA, experts and veterans are upbeat. Such warranties have improved the developers’ reputation for openness and best practises on the global real estate market. Warranties will undoubtedly provide investors and end users with a secure environment in terms of defending the interests of homebuyers. The explanation for this is that a warranty obligates developers to fix any design or construction problems that may be discovered, even after the property’s ownership has changed.

Impact on home values

While the worldwide real estate market’s defect liability time varies by country, in some places where builder responsibility & legal dispute redressals are strong and well-organized, it can be as long as ten years. Developers surely aim to improve the quality of their construction using the RERA’s five-year warranty clause. Due to the increased construction expenses, property values have increased.

If experts are to be believed, purchasers do not mind shelling out more money for homes that include warranties. Especially when a system to increase buyers’ trust has been put in place. The obvious explanation is that buyers are require to take care of maintenance and repairs of any damage. Resulting from construction fault at their own expense in the absence of warranties.

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