What are the options you have if the new property you just bought is full of defects?
- It is important for new purchasers to know that buying a new property would not usually mean that they are unlikely to have any defects. The Housing Development (Licensing and Control) Act 1966 provides to compensate purchasers that notice defects in their houses.
- There are usually pre-determined clauses that provide for the defects in new properties, and it is essential for purchasers to duly note this.
- The pre-determined “Defect Liability Clause” in the sale and purchase agreement (SPA) usually states that the developer is required to repair and make good, at its own cost and expenses, any defects, shrinkage or other faults that become apparent within a specified after the delivery of vacant possession and which can be attributed to defective workmanship, materials or a failure to construct the property in accordance with the plan and description appended to the SPA within a usual period of 30 days after receiving written notice from the purchaser, followed by requiring the purchaser to notify the developer of any defects and the developer will be given a grace period of a specific days in order to rectify the defects.
- How may the purchaser notify the developer of the defects, if any?
- List down the defects with pictures.
- Ensure that the list is delivered either through a registered post or in person at the registered office of the developer and the architect of the developer.
- Remember to ask for an acknowledgement of receipt from the developer once handing in the list in person.
Usually, the rectification works will be done within 30 days from the date of receipt of the list.
- In the event that the purchaser carries out an extensive renovation on the property upon the delivery of vacant possession, the developer is no longer liable for the defects of the property purchased and delivered.
