Is Offering Warranties Just A Gimmick For Developers?

Bangalore: Nowadays to sell projects, developers are coming up with innovative marketing strategy to entice home buyers. Prominent developers in metros like Delhi and Mumbai are providing warranties to sell their fully or semi-furnished residential projects. Warranties on houses, warranties on appliances offered by developers at a premium and so on, these warranties are coming with a time period of 1-3 years and extended upto 10 years for waterproofing of apartments. Below are few things to follow and to know whether such warranties are actually working for home buyers to buy a flat at a high price, reports Amit Shanbaug of Economic Times.

Warranties for appliances, not for the apartment:

In most cases, developers offer warranties for appliances that comes with the apartment. And, such warranties are not much related with the construction of the apartment. However, developers providing appliances in apartments is a known fact but now they have started distributing the warranty cards to home buyers during the time of possession. "The developer purchases these products from various companies, which offer their warranties. The builder merely passes them on to the customer as his own," according to Pankaj Kapoor, Managing Director of Liases Foras, a real estate research firm.

Besides, construction-related warranty which developers have started to give is on the paint. Adding to it, paint from prominent paint companies comes with a warranty of about 5 to 7 years and they offer warranty based on shade fading, algae on walls, peeling of paint and growth of fungus.

Om Ahuja, CEO, residential services, Jones Lang LaSalle India stated that "In the case of warranties on construction materials, the buyer should ask for relevant documents from the developer and scrutinize the level of accountability implied," reports Economic Times.