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Defect Liability Period – What is it?

DEFECT LIABILITY PERIOD – WHAT IS IT?

When you purchase a residential property from a Developer, the Sale and Purchase Agreement will have a defect liability clause (Clause 22). Pursuant to this clause, the Purchaser shall have eighteen (18) months defect liability period from handover of vacant possession of the property whereby if there is

(i) any defects, shrinkage or other faults to the Building due to defective workmanship or materials, or

(ii) the Building is not constructed in accordance with the plans and specifications in the Second and Fourth Schedules of the Sale and Purchase Agreement,

The Developer shall rectify that defect at its own cost within twenty –one (21) days of written notice by the Purchaser.

HOW SHOULD THE PURCHASER ENSURE THEIR RIGHTS?

When a Purchaser gets the keys to their new house or apartment they should do a careful inspection of the property to note down any defects, shrinkage or other faults to the house.

The buyer should take photographs and enclose it together with their written notice to the Developer , who is required by the defect liability clause in the Sale and Purchase Agreement to rectify the defects within 21 days of receiving the written notice.

Written by: Lilian Chan (Chan & Chan Advocates Kuching)

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