 The Practice of Defect Liability Period in the Real Estate Industry in GhanaLewis Abedi Asante, Dennis Papa Odenyi Quansah, Jonathan Ayitey and Elias Danyi Kuusaana SAGE Open, 2017, vol. 7, issue 3, 2158244017727038 Abstract: A study on the dynamics of the defect liability period (DLP) in Ghana is lacking, notwithstanding the fact that it is a common practice in the real estate industry. This study examines the practice of the DLP in Ghana’s real estate industry. The study adopts a combination of simple random and stratified sampling techniques to select 29 members of the Ghana Real Estate Developers Association (GREDA) and 58 homeowners in Accra. We employ binary and multiple linear regression models to analyze the data gathered from the study respondents. Findings revealed that the DLP in Accra ranges from 6 to 24 months for defects to fittings and fixtures as well as to the structure. While private developers are divided on the adequacy of the DLP, homeowners believe that it is inadequate. Private developers suggest a longer DLP for the structure than for fittings and fixtures, whereas homeowners suggested longer DLP for both structure and fittings and fixtures. The implication of the findings is that longer DLP could be a strategy for attracting prospective homeowners. It is recommended, among others, that GREDA develop a manual to standardize the practice of the DLP in Ghana. Keywords: real estate; defect liability period; private developers; homeowners; Ghana (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:7:y:2017:i:3:p:2158244017727038 Access Statistics for this article More articles in SAGE Open |
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