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I am a building contractor.  One of my clients, a nationalized bank has included a clause of defect liability in the agreement and also refers to guarantee.  Please inform what is meant by defect liability, guarantee  and warrant period?

- by Raja Reddy, Guntur

Defect liability period means the period in which quality of construction is tested/verified.  This period would be generally for 6 months including rainy season. During defect liability period the builder will be liable to rectify any defects noticed in the construction like seepage of water, structural cracks in the walls.  The purchaser will retain a portion of the consideration amount which will be released only after the lapse of the defect liability period.

Guarantee is a contract which is personal in nature between the individuals, companies, firms.  Guarantor would always be a third person, who is liable to compensate in case of any loss suffered.  The word surety is also used instead of guarantee.  This practice is prevalent mostly in financial transactions and performance contracts.

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These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.

QUESTIONS

Q:- I have constructed a residential complex, which I would like to let out.  My son suggests having leave and license agreement, instead of lease or rental agreement.  Please inform what difference between rental agreement and leave is and license agreement.

Q:- What is the difference between Agreement to sell and Sale deed? Can the Title of a property be transferred only on the basis of a registered Agreement to sell?  Is it necessary to make a registered sale deed to transfer such property though there is an Agreement to sell between two parties and is also registered?

Q:- I had entered into a sale agreement for purchase of a house at Basavanagudi. The agreement is dated 01.07.2000. 1 had paid Rs. 20, 000/- as advance on the date of the agreement and Rs. 80,000/- on 30.09.2000 towards sale price. As per the terms of agreement, seller has to get the sale deed registered in my favour on or after 30.06.2001. He is not willing to execute the sale deed and as per the information is negotiating with others for sale of the property for more money. Seller is my friend who says that limitation period is three years are over and I cannot take any legal action and assures me that he will refund the money after he finds another purchaser. I am ready with money for registration. Please advice what to do?

Q:- Can the intending purchaser of an immovable property, back out of the sale transaction on the ground of non-fulfillment of obligation by the vendor?

Q:- I have purchased a house in Malleswaram jointly with my wife. The sale deed is registered in me and my wife’s name. However, I want to transfer the entire property to my wife. Have I to execute a sale deed in favour of my wife. If so what are the stamp duty and registration charges?