Cracks After Possession: Whose Five Years Are They?
'Lakeview' is a registered 60-unit project in Thane. The occupancy certificate was issued on 10 June 2022; allottee Meera took possession on 5 July 2022. In May 2025 she found seepage on two external walls and a crack in a column in the stilt parking. Her notice of 20 May 2025 drew the reply that 'the one-year defect liability period in the agreement is over and RERA gives no warranty after possession'. Meera now wants to sell the flat. She engages Kabir, a registered agent, who proposes to advertise it as a 'RERA-compliant, defect-free flat with clear title' and to leave the defect dispute out of the listing because 'it will knock ₹4 lakh off the price'. Meera has also never received a copy of the conveyance deed.
1. Is the promoter's reply correct? Set out Meera's remedy and the risks in it.
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The reply is wrong. Section 14(3) fixes a five-year period from the date of handing over possession during which the promoter must rectify defects in workmanship, quality or services, and any structural defect. Meera took possession on 5 July 2022, so the statutory period runs to 5 July 2027. Her May 2025 notice is well inside it.
The 'one-year defect liability' clause cannot cut down the statutory period. A contractual term shorter than Section 14(3) is void to that extent; the section is a floor, not a default the agreement can bargain away.
Process: written notice identifying the defects, then 30 days for the promoter to rectify. If it does not, the allottee is entitled to compensation, and MahaRERA on a Section 31 complaint can order rectification plus compensation. Keep the provisions distinct - Section 14(3) for defects surfacing after possession, Section 18 for delay in handing over, Section 12 for false statements in the advertisement or prospectus.
Fair caveat: causation is contestable. Damage from the allottee's own alterations, seepage originating in a neighbour's unauthorised work, or ordinary wear may fall outside the section. Meera should obtain an independent structural report and preserve dated photographs before filing.
2. What must Kabir disclose in the resale listing, and what is his exposure if he follows his plan?
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Kabir's proposed listing is a Section 10 problem, not a marketing choice. An agent may not make a false representation or give false information to a person seeking to buy. A live structural complaint, a running five-year statutory warranty, and an advertisement describing the flat as 'defect-free' with 'clear title' are directly contradictory. Suppressing the dispute to protect a ₹4 lakh price is an unfair trade practice, and it is the buyer who pays for it.
Mandatory disclosures for this listing:
- The pending defect claim and the Section 14(3) notice, with dates.
- The project's MahaRERA registration number, and the carpet area as per the sanctioned plans and the agreement - not the 'saleable' figure.
- Occupancy certificate status and the position on conveyance. Meera has no conveyance deed; under Section 17 the promoter is required to execute it, and non-compliance is itself a material fact and a separate grievance.
- Outstanding maintenance dues, society or association formation status, and any encumbrance.
- The agent's fee, disclosed in writing to both sides.
Practical route for Meera: obtain the rectification or compensation order first, or disclose the claim and assign it in the sale deed. Buyers price risk; they do not forgive silence. If Kabir proceeds as planned, he faces penalty under Section 62, a Section 31 complaint, and cancellation proceedings.