LEGISLATIVE REFORMS FOR PROPERTY DEFECTS
Homes are one of the most significant economic commitments in a person’s lifetime. Against the growing number of housing developments in land-dense Singapore, the Singapore Academy of Law Building and Construction Sub-Committee recently penned a concept paper suggesting legislative reforms in relation to private residential property defects.
It recommends the imposition of a warranty that makes developers and the main contractor liable to original and subsequent homebuyers for property defects. These include structural cracks, fire safety defects and deficient waterproofing.
This would mean that the players with “deeper pockets” remain responsible for defects caused by the parties that they had engaged to carry out the works.
Another recommendation is to extend the limitation period – the period of time within which a homeowner must bring a claim against the contractor. The usual limitation period is usually six years from the date the project was completed.
The Sub-Committee proposes extending the limitation period to 15 years for cases of major defects, while retaining the six-year limitation period for defects related to quality and workmanship.
Finally, a broad proposal is to introduce compulsory insurance that can cover the full duration and extent of liabilities for defects after the completion of works, including work done by sub-contractors.
It remains to be seen whether the broad proposals for reform will be taken on board. But if in place, they will empower homeowners in seeking recourse for stressful and costly defects like water leaks.
Paul Sandosham is Partner at Clifford Chance Asia and Looi Ming Ming is Partner at Eldan Law LLP.
