CHENNAI: The flats you buy under the new regime of the Real Estate (Regulation and Development) Act will have a warranty of five years.
The builder will be liable for structural defects for five years from the date of handing over, and defects, if any, have to be rectified within 30 days of reporting, according to official sources familiar with the new Act that was notified by the State on June 22.
Under the new Act, defects include workmanship, quality, provisions of services or any other commitment of promoter as per agreement.
However, it excludes damages caused due to act or omission of allottee, damages due to unforeseeable circumstances, consequential damages, plastering and hairline crack.
The Act also restricts the companies from including the corporate overheads and refundable deposit in joint venture projects under the project costs. The project cost can include only items like the land cost, transferable development rights, premium floor space index
charges, statutory fee and charges like stamp duty, registration fee, infrastructure and amenities charges, development charges and deposits.
Under the new Act, carpet area excludes external wall, exclusive balconies, verandah, and terrace wall. Common area includes open car park, basement, terrace, commercial facilities and other common amenities.
The Act also puts a cap on the withdrawal of money pertaining to the project from the bank. “It is linked to the percentage of completion of project,” sources added.
Meanwhile, there is a confusion prevailing over the registration of projects. As per the Act, all ongoing projects have to be registered within three months from May 1. However, the State has notified the Act only on June 22, 2017.