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CODE OF CONDUCT

INTRODUCTION

This 'Code of Conduct' is recommendatory in nature. Member Associations may modify the same in order to meet their local conditions, provided such changes are not out of harmony with the essence of these contents.

OBJECTS

The aim of this code of conduct for Developers, Promoters and Builders is to maintain the honor and dignity of Developers, Promoters and Builders in general, to secure the spirit of friendly co-operation between the Developers, Promoters and Builders and their customers in the promotion of highest standard of promotion, development and building activities and to establish transparency, and fair dealing between the developers, promoters and builders with their customers; and to establish a spirit of brotherhood within the Associations of Developers, Promoters and Builders to try and ensure that Developers, Promoters and Builders discharge their responsibilities to the community in general.If any member is found to violate the code, action can be taken against him by the Member Association (even to the extent of his membership being discontinued) subject to a detailed enquiry by a select committee whose recommendations if endorsed by the Managing Committee and by the General Body of the respective member association, would lead to a written warning/reprimand or termination to be taken by the managing Committee shall be put in to effect 30 days after communicating the proposed decision to the member in writing by Registered Post Acknowledgement due at his address as per records of the Association. The member can appeal the decision of the Managing Committee to the General Body of the member association whose decision shall be final and binding. This appeal must be lodged within 30 days of the date of communication by the Managing Committee failing which the decision communicated shall be final and binding.

The member may appeal against this decision to the CREDAI (national) within 30 days of this communication from the member association. The CREDAI (national) will hear this matter within 30 days thereafter and communicate the final decision to the member association as also the individual member. Once the decision to discontinue the membership is finalized the association will have to inform in writing to all local statutory authorities of this action as also publish a notice in the local newspapers for information to public at large with regard to the discontinuation of the membership of that developer. Additionally all the CREDAI (national) and other member associations will be duly informed of the same and should the member be a member of any other CREDAI association then it is for them to decide on course of action for that membership in light of this termination of membership.

CODE OF CONDUCT

We, the member associations of CREDAI adopt the following code of conduct. Any addition / Deletion can be effected from time to time with the consent of the General Body. Proposals must be circulated 30 days prior to the General Body meeting.

TITLE

There should be a true disclosure of the property under development in the "Title Certificate" from a solicitor / Advocate showing the rights and obligations of the developers along with the Agreement for sale.

INSPECTION OF SANCTIONS

All sanction from the sanctioning authorities like Town & country Planning, Diversion, Municipal Corporation/Gram Panchayat, and Nazul N.O.C. (if required), exemption order under U.L.C. Act (if required) etc., should be made available for perusal of the purchaser at the time of signing the agreement.

BOOKING OF PREMISES

The Developer should normally commence booking / Sale of flats / premises only after obtaining sanction of plans and commencement certificate and clearances from the competent authorities. If booking is entered into with purchasers before obtaining all required clearances the purchaser must be made aware of this fact at the time of this booking and if necessary by way of a true disclosure in the agreement and or the title certificate.

AGREEMENT OF SALE

The Developer should enter in to a proper agreement as per the relevant Acts maximum within 30 days on receipt of Earnest Money or any Deposit from the purchaser of flats / premises.

PAYMENTS

Payment receivable under the Agreement for sale should be scheduled according to the progress of the work and as per the provisions of the relevant Acts or as may be mutually agreed between the purchaser and developer.

ESCALATION

The developer should not enhance the price of the flats / premises once the agreement for sale is executed – on any account whatsoever; except for additional levies, taxes, court orders or in terms of the relevant Acts or under force major conditions. However, if there is a specific understanding between the Developer and Purchaser which is spelt out in the agreement, escalation can be charged on mutually agreed formulae or terms.

CONSTRUCTION OF BUILDING

The developer should construct the building only as per the rules / sanctioned plan and regulations of the Authority. Any variations should be within prescribed and permitted and prevailing norms / rules

QUALITY OF CONSTRUCTION

The Developers must ensure good quality materials and proper workmanship. Specifications as per agreement should be adhered to and statutory specifications of the Local Planning Authority should be complied with. Proper technical supervision on site should be ensured through qualified and experienced technical personnel in addition to usual qualified structural engineers and architects.

PLANS & SALEABLE AREA

PLANS: A member

    i.   Shall conform his building plans strictly to the prevailing regulations and byelaws
    ii. Shall make available copies of sanction plan and other permissions available to the purchaser on reque
    iii. Shall display the sanctioned plan date & number in a prominent place at the construction site

SALEABLE/Built-up Area

The built-up Areas of individual tenements is the area of the outer measurements of the tenement at floor level including the areas of balconies, cupboards, accessible internal projections including private terraces and the door/window jambs and will also include the following detached habitable area, if any, such as servants' room etc. for exclusive ownership.

    i.   Mezzanine floor/lofts, if any
    ii. An agreed 50% age of the double heights rooms or terraces, if any.
    iii. An agreed 33% age of the private/reserved car parks allotted or sold to the customer forexclusive use.
    iv. An agreed %age of the private/reserved garden or ground area allotted or sold to the customer for exclusive use.

All agreed %ages referred to above shall be stated in the agreement of sale A member shall offer his units for sale based on either built-up area as above or "saleable area", which will be arrived at by adding to the built-up area, proportionate share from the common areas such as entrance lobby, staircases, upper floor lobbies and landings, lift cores at every level, lift machine rooms, generator room, electrical room/substations/transformers, gas banks, garbage room, clubhouse, security room, club house, indoor sports room/s, security cabin, general toilets for servants / drivers and any such amenities/rooms or designated spaces provided these have not been charged separately plus any other common constructed areas not mentioned hereinabove. The member association may from time to time adopt standard procedure for ease of the purchasers in their city/town/state a certain percentage of area in lieu of Proportionate share from the common areas as above which then will be applicable to all the members and the purchasers as a standard practice.

NOTE

• Ground space for garden or any other purpose and / or terrace space to be allotted for exclusive use if any shall be indicated transparently and charged for separately.

• Built-up and plinth area shall be computed by measuring from wall to wall. While exclusive wall shall be fully accounted, shared walls shall be split.

• All agreements for sale of any premises shall contain a floor plan showing the internal dimensions from which the Built-up area can be computed.

• Details showing how the saleable area is arrived at with specific details of the common area shall be disclosed with clarity duly certified be an architect as per above norms at the time of booking.

Saleable area shall not include

Underground sump, water tanks, compound walls, septic tank, open to sky walk ways, , open to sky swimming pool, open sports facilities, chajjas, weather sheds, inaccessible flower beds, lofts, common open to sky terraces, stairwell ducts and voids etc. and the like.

CONSTRUCTION, TIME FRAME, PENALTY, GENERAL CONDITIONS

A. Shall in his agreements disclose a definite time frame for completion of construction up to the stage of occupation or completion? The construction shall be deemed to be complete when certified by the project architect & provided certain minimum amenities are properly provided where necessary such as ramp to enter the basement, compound wall with gates, staircase leading to the terrace, constructed underground and overhead to the terrace, underground and overhead water tanks with adequate capacity, ladder leading to the overhead tank besides such other basic requirements to make the complex habitable are provided, whether mentioned specifically in the list of specifications or not.

B. Shall incorporate in his the agreements, a clause applicable in case of a delay in completion of construction to transparently state the conditions under which compensation to the Purchaser would be due.

COMPONENTS OF COST

A member shall, in the agreement with purchasers clearly mention the components of the sale price and any and all other receivables. Unmentioned charges and /or costs shall not be collected from purchasers. The agreements should transparently & clearly spell out all the amounts and charges recoverable based on actual such as

A. Proportionate share of the deposits, costs, on the basis of sq.ft/sq.mts of saleable area or on unit basis for obtaining connections from electricity board and water authority and access from road authorities. Proportionate share of amounts paid to the sanctioning authority by way of development charges, scrutiny fee. If the exact share is not available at the time of signing the sale agreement, an approximate estimate shall be provided.

B. Stamp duty, registration fee, expenses or any other levies for registration of the sale deed

C. Service tax/ Vat, Sales Tax on works contractor any other tax from time to time if applicable.

D. Advocate's fee for registration / documentation charges.

E. Cost, expenses, fee etc for formation of Society/Association of Apartment Owners/Body corporate and registration of deed of Declaration etc.

F. Maintenance deposit / charges or one time maintenance charge.

G. Taxes, levies and charges to the statutory authority.

H. any charges or deposits incurred for labour welfare or environment clearances, pollution control boards etc. as may be statutorily required including any new charges levied by the statutory authorities during the period between booking and completion.

DESCRIPTION OF AMENITIES

INFRASTRUCTURAL REQUIREMENTS

All conditions with regard to infrastructure as set out in the approval of the layout plan by Municipal Authority or Planning Authority should be fully complied with by the Developer. The building and its premises should be left in a clean and habitable condition.

TREE PLANTATION

Tree plantation should be done near/at sites as per local rules or the CREDAI recommendation of 10 trees per1000 sq.mtrs of plot area, except where it is not possible in congested areas.

LABOUR WELFARE

Members are encouraged, at large sites (more than 4000 sq.mtrs) to have crèches and educational facilities for the children of the labour, be provided along with other possible labour welfare activities, such as periodical medical check-ups, insurance etc.

REFUND OF MONEY

In case the completion of the building is delayed beyond the period stipulated under the agreement for sale with the flat purchaser and with full regard to force majuere conditions mentioned in the agreement, the Developer should return all the moneys received by him from the flat purchaser, along with interest as specified in the agreement. Suitable refund condition or compensation should be clearly mentioned in the agreement.

FORFEITURE

Developer shall incorporate in the agreements, a clause to the effect that in the event of non-payment of installments or other components of agreed sale price, the cancellation and forfeiture of any amount shall be in terms of the agreement which must transparently state addressing issues such as amount of forfeiture, interest charges, liquidated charges, period for repayment etc.

MODE OF CONVEYENCE

A member
i. Shall in his agreements disclose a definite time frame for completion of construction up to the stage of occupation or completion . The construction shall be deemed to be complete when certified by the project architect & provided certain minimum amenities are properly provided where necessary such as ramp to enter the basement, compound wall with gates, staircase leading to the terrace, constructed underground and overhead to the terrace, underground and overhead water tanks with adequate capacity, ladder leading to the overhead tank besides such other basic requirements to make the complex habitable are provided, whether mentioned specifically in the list of specifications or not.
ii. Shall allot specific interest and / or entitlement in land for every car parking space.

iii. Shall make available the copies of title documents to the purchasers on request.

iv. Shall incorporate a condition in his agreement to the effect that all the covenants other than those specific to a particular unit such as rate, area etc. Shall be common to all the purchasers of a particular project. If the developer intends to reserve some specific rights such as allotment of ground space for garden (in the setback area), terrace, car park (in the setback area) for private use of some units, such intention shall also be mentioned in all the agreements pertaining to the project.