Home warranties serve as a crucial safeguard, offering homeowners peace of mind by providing coverage for the repair or replacement of structural defects in the ready-to-occupy flats or properties they have purchased. Understanding the ins and outs of home warranties is essential for protecting your investment and avoiding potential financial burdens. A home warranty is a service contract that covers structural defects, meaning issues in a building where the structure doesn’t work as intended by the homeowner. These problems often occur due to design flaws, subpar materials, or construction mistakes. Poor-quality materials can lead to leaks, and faulty construction may cause foundation cracks, plumbing troubles, and electrical or mechanical issues.
RERA’s (Real Estate Regulation and Development) home warranty provision covers these concerns. Clause 14(3) of the Real Estate Act has extended the warranty period to 5 years from the date of possession. Furthermore, it mandates that any issues must be resolved within 30 days of being brought to the developer’s attention. This provision can be seen as a customer-friendly aspect of the law. Additionally, to ensure a seamless process, the developer closely monitors subcontractors to prevent potential difficulties in the future, which ensures the quality of the property. While a home insurance policy typically covers damages caused by unforeseen events like fire or natural disasters, a home warranty is designed to address the wear and tear issues that inevitably arise over time.
Exercising caution regarding the warranty, its coverage, service network, and claim process when purchasing a ready-to-occupy flat offers numerous advantages. It brings peace of mind through a straightforward process and cost-effective repairs, and the fact that this warranty can also be transferred to the new owner adds an advantage. From a developer’s standpoint, this law improves construction quality, contributing to higher construction costs and subsequently increasing property values.
