Developers must repair structural defects in project up to 5 years after handover: KRERA

Experts add several Bengaluru developers neglect their responsibilities as soon as the project is handed over to the housing association.

For how long are builders responsible for any shortcomings? That may have been answered when in a recent order, the Karnataka Real Estate Regulatory Authority (KRERA) held that developers must repair any structural defect in the project for five years after the residents' association has been formed and the project is handed over to the allottees.

In this case, the person who had bought a flat in SNR Verity, located in Sarjapur in Bengaluru, complained to the state real estate regulator after developer SNR Square Pvt Ltd failed to repair the damage arising from rainwater seeping into his apartment and fix the problem.

Passing the order on June 13, KRERA said even after the formation of a residents' association, which in the normal course takes over oversight of maintenance of the project, the developer must rectify any structural defect that might come to light up to five years after handing over possession.

Experts added that several Bengaluru developers neglect their responsibilities as soon as the project is handed over to the housing association.

The case

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Souptik Datta

Sub Editor|Moneycontrol

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Pankaj Singh moved into an apartment in 2022 in SNR Verity located in south Bengaluru. The occupancy certificate was issued in 2020 and the sale deed executed in 2021.

Singh faced severe water seepage issues, but these were not addressed by the developer, so he filed the complaint with KRERA.

While the developer had previously informed the authority that the issue had been resolved, Singh claimed that the problem was recurring.

Homebuyers claim a bigger issue

Dhananjaya Padmanabhachar, director, Karnataka Home Buyers Forum, pointed out that according to the Real Estate (Regulation and Development) Act, 2016, the developer not only has to rectify such defects after giving possession but also after the common areas have been transferred to the association (also known as conveyance of the apartments).

Chapter III Part 4(A)  of the act says, "Provided that the responsibility of the promoter, concerning the structural defect shall continue even after the conveyance deed of all the apartments."

However, homebuyers claim that several developers continue to avoid such responsibilities even before the conveyance of the apartments. "A few months back, we filed a complaint in the Sobha Arena project after the developer declined to repair the damage in the project clubhouse following a fire incident. Such is a common practice here," he added.

Many homebuyers also said that in many cases, developers often pass on the repair costs to the associations, which is the builders' onus.