Elite Realty

Builder’s Warranty In Noida –– What Includes And What Not In Such Waranty

A warranty  can be defined as an expressed or implied assurance or promise of some nature.  In general, it is understood as a written promise or assurance on the part of a  manufacturer  to replace or repair  its  faulty product within a fixedperiod of time.

“BUILDER’S WARRANTY”

The quality of buildings has been a big concern for prospective home buyers. When a new construction of any building takes place, there can be instances of structural defects and issues pertaining to leakages, seepages and dampness etc. This could be due to

1. construction norms not having been followed or

1. something wrong with the structural integration of the building.

In order to cover such situations, the idea of  Builder’s Warranty  was brought  in. As the name suggests, it is a promise or  assurance on the part  of a Builder to the homebuyer to rectify structural or any other defect in workmanship, quality etc., in case necessary, within a specified period of time from the date of handover.  Under this contract, investment and home of a buyer are protected against incomplete and defective workmanship. It is a type of insurance on the part of a builder with respect his new structure under which the Builder is obliged to rectify structural deficiencies within a specified time from the date of handover..

A provision pertaining to Builder’s Warranty in Section 14 (3)  of  the Real Estate (Regulation and Development) Act, 2016 has been a solace  to the home buyers as per which the allottee of a house,  within a time period  of five years from the date of handing over of  possession, is required to bring  to the notice of the promoter,

• defect – whether structural or any other – in
• workmanship, quality or
• provision of services or
• any other obligations of the promoter relating to such development. as per the agreement for sale

On receipt of the Notice, the Promoter has to, within 30 days, rectify such defects  gratis  i.e. without any  further charge.  Non-fufilling by the promoter of his obligation shall result in aggrieved allottee’s becoming entitled to receive appropriate compensation in such a manner, as provided in  relevant provisions of  the Act.

BUILDER’S WARRANTY IN NOIDA

NOIDA is in Uttar Pradesh and the real estate sector matters are governed by Rules and Regulations of Uttar Pradesh Regulatory Authority (U.P. RERA). Normally, structural components like the foundation, walls, and roof  and  the quality of the workmanship are included in the builder’s warranty. Other items like appliances, electrical, plumbing and cooling/heating systems may also be covered.  Any deviation or fault from the structural performance intended of a building element is termed as a “Structural defect” and falls under Builder’s Warranty.

The term “Structural Defect” has  neither been specifically defined in the Real Estate (Regulation and Development) Act, 2016 nor in the Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016. However, based on a clue from   related provisions in the Rules of RERAs of a few other States in India and explanations of the term “Structural Defect” elsewhere, it can be said that

following should be inclusions and exclusions in  Builder’s Warranty in NOIDA :

• SITUATIONS COVERED IN BUILDER’S WARRANTY
• Physical damage or actual defect, appearing during the course of time, in the case of  load-bearing elements of the building, apartment or  unit e.g. breakage, cracks  or faults  in load bearing columns, walls, beams, slabls  which can impact the strength and stability   of the  the building   or apartment and shall include any of the following viz. :

• Defects arising out of Design attributes of

(a) RCC ( Reinforced Cement Concrete) or

(b) Structural MS (mild steel) elements of structurally designed (engineered) building structure

• Faulty or bad workmanship defects of MS work or RCC.

• defects arising out of materials used in such MS work or RCC;

• Causing of Major cracks in masonry work due to failures of RCC or MS work.

• Defects arising due to use of inferior materials or negligence or non-adherence by the promoter of the regulatory codes of practice.

• Foundation problems relating to foundation shifting or Uneven floors and sagging

• Drainage issues such as leaky pipes, clogged drains, damaed ceilings and walls

• Electrical: issues like faulty electrical wiring, resulting in overheating

• Roofing problems like roof leaking.

• Structural rot due to termite damage or rot of wood

• SITUATIONS  NOT COVERED UNDER BUILDER’S  WARRANTY

• .Equipment where manufacturer’s guarantees is for a limited period e.g. generator, lifts motors, transformers, STP, gym equipment etc.)

• Fittings connected with electrical, hardware, sanitary, plumbing etc., having natural wear and tear

• structural and other deformations, which are allowable including expansion quotient

• The terms of work, which are subject to normal wear and tear e.g. painting etc.;

• Defects `due to commission or omission of the Allottee.

• Damages caused by natural calamities or fire accidents or acts of god

• Any defect caused due to  the promoter’s  carrying out any architectural or structural change  from the original  design or specifications.

• Any manufacturing or other defects ( unless it results in structural defect) in the case of branded fixtures or inputs or services  of third party, which are mentioned  in annexure/schedule  of agreement between the seller and the buyer.

• Any deficiency or defect caused by  any act or omission of  any authority or  of a third party on whom the promoter has no control.

CONCLUSION

In the absence of clear cut inclusions/exclusions of elements in Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016 with regard to Builder’s Warranty, a home buyer in NOIDA, in order to protect his interest, at the time of entering in to an Agreement for Sale or a Construction Agreement,  must know  as to which structural and other defects  or provision of services or any other obligation on the part of a Builder are covered therein in respect of  which rectification, in case required, can be claimed by him under the builder’s warranty.