Theodore Lowe, Ap #867-859
Sit Rd, Azusa New York
Find us here
Structural Deficiency under RERA Ac
Structural deficiency is a term used to describe a problem with the structure of a building that affects its safety or stability. It can be caused by a variety of factors, including poor design, inferior construction materials and poor workmanship. Structural deficiency can pose a serious risk to the people living or working in the affected building, and it is important for property owners and developers to address these issues promptly and effectively.
The Government of India enacted the Real Estate (Regulation and Development) Act in the year 2016 and the Act came into force on 1st May, 2017. The Preamble to the Act reads as: -
"An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in and efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto."
Section 14 (3) of the Real Estate (Regulation and Development) Act, 2016 provides that if there occurs any defect or deficiency in the workmanship, quality, provisions of the services whatsoever, it needs to be amended by the developer, if such problem has occurred within 5 years from the date of handling of the possession. Further Section 14 (3) reads as follows: -
“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 promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act”.
The Real Estate (Regulation and Development) Act, 2016 does not explicitly define the term "Defect Liability/Structural Defect." The Act requires states to frame and notify the Rules and implementation thereon. Accordingly, most states have notified their own Rules.
Rule 2(1)(u) of the Haryana Real Estate (Regulation and Development) Rules, 2017 defines ‘Structural Defect’ as damage that has occurred to the designated load bearing elements in any structure such as house, flat etc. It moreover gives a list of such defects which might be covered under the bracket of the expression ‘structural deficiency. The list therein mentioned is not exhaustive. Rules 2(1)(u) includes: -
-
Defects due to design attributes of reinforced cement concrete (RCC) or structural mild steel (MS) elements of an engineered (structurally designed) building structure;
-
Defects due to faulty or bad workmanship of RCC or MS work;
-
Defects due to materials used in such RCC or MS work;
-
Major cracks in masonry work that are induced as result of failures of RCC or MS work;
-
Any defect which is established to have occurred on account of negligence, use of inferior materials or non-adherence to the regulatory codes of practice by the promoter.
Moreover, the rules further states and envisages that the promoter shall not be liable for any such structural/ architectural defect which are caused by the allottee due to change in specifications and designs in the original plan layout of the structure therein disputed.
Further, the Telangana Real Estate (Regulation and Development) Rules, 2017 gives the definition of the defect liability indirectly as it states all the defects that shall not be included under any dispute regarding the structural deficiency. Rules 12 (2) reads as follows: -
“Notwithstanding anything contained in the above clause the following exclusions are made
-
Equipment (lifts, generator, motors, STP, transformers, gym equipment etc) which carry manufacturer’s guarantees for a limited period. Thereafter the welfare association /society shall take annual maintenance contract with the suppliers. The Promoter shall transfer manufacturers guarantees/warrantees to the allottee or association of allottees as the case may be.
-
Fittings related to plumbing, sanitary, electrical, hardware, etc. Having natural wear and tear.
-
Allowable structural and other deformations including expansion quotient.
-
The terms of work like painting etc. which are subject to wear and tear.”
In order to ensure proper protection and accountability, developers are now required to establish a back-to-back warranty with their suppliers. This involves clear documentation of all aspects of the project, from the contract stage to final execution and handover. Given the length of the warranty period (5 years), it is important for developers to clearly define their liabilities in relation to workmanship, which may also include items such as tiles, sanitary fittings and electrical wiring. Builders may also choose to protect themselves through insurance coverage. However, the responsibility for ensuring proper workmanship over the 5-year period still pose a significant challenge to developers. The government(s) have tried to ensure the safety and security of the allotees/customers by imposing the liability with regards to the structure so developed, upon the developer. Through the apex court is yet to adjudicate such matters and spread the light upon the concepts mentioned herein.
References:
https://taxguru.in/corporate-law/defect-liability-period-rera.html
Sophie Asveld
February 14, 2019
Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.
Sophie Asveld
February 14, 2019
Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.