Section 21: Mandatory guarantees

21. Mandatory guarantees (1) Every builder shall subscribe, in relation to such building as may be prescribed, a property damage insurance policy in favour of a developer or an eventual buyer to guarantee for a period of one year, the payment of compensation for any property damages due to execution faults or defects which affect the finish works or elements, failing which the developer shall withhold 5 per cent of the contractual price of the building works. [Issue 10] B13A – 10 Revised Laws of Mauritius (2) Every developer shall subscribe, in relation to such building as may be prescribed— (a) a property damage insurance policy in favour of eventual or subsequent buyers or lessees to guarantee, for a period of 2 years, the payment of compensation for any property damage resulting from faults or defects in non-structural elements or services resulting in the non-compliance with the requirements under section 3 (c); (b) a property damage insurance policy in favour of eventual or subsequent buyers or lessees to guarantee, for a period of 10 years, the payment of compensation for any property damage caused to a building by faults or defects originating in or affecting the structural elements including the foundation, supports, beams, framework, load-bearing walls, or other structural elements and which could directly jeopardise the building’s structural soundness and stability; and (c) a property damage insurance policy in favour of eventual or subsequent buyers or lessees to guarantee the payment of compensation for any property damage caused during a cyclonic season. PART V – DANGEROUS BUILDINGS