The Defect Liability Period (DLP) is a crucial time frame for buyers to ensure that their property is in good condition and any defects are rectified by the developer. However, several issues may arise during this period:
1. Misinterpretation of the Sale and Purchase Agreement (SPA)
Issue: Buyers and developers may have differing expectations or interpretations of the SPA clauses regarding defects and warranties.
Impact: Disagreements can delay defect rectifications or lead to disputes about liability.
Solution: Carefully review the SPA before signing and seek legal advice if necessary. Ensure all clauses related to defects are well-understood and agreed upon.
2. Renovations During the Defect Liability Period
Issue: Renovations carried out during the DLP may obscure or even cause defects. Developers are likely to deny responsibility for such defects.
Impact: Renovation work could invalidate claims for pre-existing or new defects.
Solution: Avoid renovations during the DLP unless necessary. Conduct a thorough defect inspection and report issues to the developer before starting renovations. Engage professionals to assess the property and provide detailed reports.
3. Sale of Property During the Defect Liability Period
Issue: When a property is sold during the DLP, the new owner might not inherit the right to make claims unless explicitly transferred.
Impact: The new owner may lose the ability to hold the developer accountable for defects.
Solution: Ensure the right to claim defects is formally transferred to the new owner as part of the property sale agreement. Document this in writing to avoid future disputes.
4. Disagreements on Defect Significance and Timeliness of Repairs
Issue: Disputes may arise over what qualifies as a "defect" and the acceptable timeline for repairs.
Impact: Buyers may feel dissatisfied with the developer’s rectification efforts, while developers may argue that issues are minor or non-urgent.
Solution:
Employ independent experts, such as architects or engineers, to assess defects and confirm if they violate construction standards.
Clearly document and photograph defects to provide evidence.
Negotiate timelines for rectification and escalate unresolved disputes to the Homebuyer Tribunal if necessary.
5. Oversight by Architects or Engineers
Issue: Professionals evaluating the property may overlook flaws during inspections.
Impact: Undetected defects may surface after the DLP ends, leaving the buyer responsible for repairs.
Solution:
Conduct multiple inspections during the DLP.
Consider hiring third-party inspection services for a detailed property assessment.
Tips to Minimize Issues During the DLP
Early Inspections: Begin inspections immediately upon receiving keys.
Thorough Documentation: Record defects with photos and written descriptions.
Communicate Clearly: Maintain a written record of all communications with the developer.
Understand Your Rights: Familiarize yourself with the DLP clauses in the SPA and the Housing Development Act (HDA).
By addressing these potential issues proactively, buyers can ensure a smoother process and minimize complications during the DLP.
