Developer Handover and Defects Liability: What Owners Should Do

When a developer hands over a new building, the first period of ownership is also the best chance to hold someone else responsible for defects. During the defects liability period, the party that built the property is normally obliged to put right defects that appear. Use that time well.

Know your period and your rights

Contracts and applicable laws set the length of the liability and warranty periods, and what they cover. They differ between projects, so read your sale agreement, the handover documents and the building's management documents, and take legal advice if anything is unclear.

Collect the handover pack

•     As-built drawings.

•     Operation and maintenance manuals.

•     Equipment warranties and test certificates.

•     Approvals and completion documents.

•     Asset lists and keys, codes and access details.

These are the foundation for future maintenance, and are far harder to obtain later.

Snag both units and common areas

Owners should snag their own units, using a checklist such as our trade-by-trade guide. Management companies and owners associations should inspect common areas, plant rooms, roofs, car parks and external areas.

Log defects with evidence

•     Photograph each defect with its location.

•     Record the date it was reported and who it was reported to.

•     Keep copies of correspondence.

•     Track responses and deadlines.

Watch seasonal defects

Some defects only show in particular conditions, such as roof leaks in rain or AC problems in peak summer. Check the building through at least one full cycle of seasons while the liability period is still running.

Inspect before the period ends

Plan a full inspection well before the liability period expires, and submit the defect list in time for it to be addressed. Do not wait until the last week.

Be careful with repairs by others

Before engaging another contractor to repair something still under liability or warranty, check whether this could affect your claim. Agree it in writing where possible.

Plan the move to ongoing maintenance

Once the developer's responsibility ends, ongoing maintenance needs a clear owner and an AMC with a defined scope, as set out in our scope checklist. Good records made during this period carry straight into it.

Taking over a new building or unit? Book a snagging inspection and get a documented defect list while the liability period still runs.