3 Key Points to Understand About the Defects Liability Period (DLP)
When you buy electronics like a TV, computer, washing machine, or dryer from stores such as Courts or Best Denki, these products typically come with a warranty of one to two years, depending on their price. Many retailers now offer consumers the option to extend this warranty period up to a maximum of five years for an additional cost, which varies based on the product's price. Whether this extended warranty is worth the expense is a separate consideration.
In real estate, the equivalent of a warranty is known as the Defects Liability Period (DLP). Legally, developers are required to provide a warranty of up to 12 months, although some may unofficially extend this period to 18 months.
1. Warranty Coverage
What does the 12-month warranty cover? It addresses all internal defects that homeowners may encounter in their new property. Any internal issues should be reported to the Developer or Main Contractor through the Management Agent (MA) or directly. Since the Developer appoints an MA during this time, all defect reports will go through them. If defects are not reported within the DLP, they may not be addressed as the warranty will be considered expired.
2. Which Warranty is Most Important?
The Developer provides a comprehensive set of warranties that will be handed over to the MA. However, the most critical warranty for homeowners to note is for any seepage from external sources like walls, windows, or rooftops into the interior unit. This warranty is vital as it directly affects you as the owner and typically has a validity of 10 years. Confirm this detail with your MA.
3. What if You Have Renovated?
A common concern for homeowners is discovering defects after renovations have been completed. In such cases, developers or contractors may argue that any damage was caused by the owner's contractor rather than being a construction defect. Therefore, it's advisable to hire a professional, such as a Building Surveyor, to inspect and document any defects during the DLP. This documentation can serve as evidence in case disputes arise later. Remember that all warranties have an expiration date that homeowners must consider.
