Constitution of CREDAI

Code of Conduct

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.

Objectives

The aim of this code of conduct for Developers, Promoters and Builders is to maintain the honour 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.

For the aforesaid objectives the member associations of CREDAI desire to adopt the following norms of conduct. (However, specific mention of the following norms of conduct / rules shall not be construed as conferring upon the members and / or the customers and / or the premise purchasers any legal right enabling them to enforce the same in Court of Law of otherwise).

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 of membership of the member.

Any such action proposed 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.

1. 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.

2. Inspection of Sanctions

All sanction from the sanctioning authorities like approved plans and commencement certificates, N.A. permission, 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.

3. 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.

4. Agreement of Sale

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

5. Payment

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.

6. 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 majeure 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.

7. 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.

8. 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.

9. Plans & Saleable Area

A. Plans: A member
  • Shall conform his building plans strictly to the prevailing regulations and byelaws.
  • Shall make available copies of sanction plan and other permissions available to the purchaser on request.
  • Shall display the sanctioned plan date & number in a prominent place at the construction site.
B. Saleable / Carpet Area

The carpet areas of individual tenements is the area of the inner measurements of the tenement at floor level excluding the column offsets and wall finishes but will include 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. Mezzanine floor/lofts, if any.

  • An agreed %age of the double heights rooms or terraces, if any.
  • An agreed %age of the private/reserved carparks allotted or sold to the customer for exclusive use.
  • 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 carpet area as above or “saleable/built up area”, which will be arrived at by adding to the carpet area: all wall, column thicknesses, 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.

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 carpet 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.

Facilitate Events, workshops, round tables, discussion, and expert opinion CREDAI’s foremost responsibility is to bring developers on the same platform and create opportunities for the real estate developer community to interact with other stakeholders in the industry, like government bodies, professionals and consultants. To this end, CREDAI organizes workshops, seminars, and round tables and a large annual real estate conference, NATCON. Click here to see highlights of NATCON 2009.

For consultations, expert opinions and comments on issues of concern, CREDAI engages lawyers, accountants and analysts from time to time. CREDAI also commissions studies when needed.

Promote Ethics, best practices, and professional practice CREDAI supports its member developers in establishing a reputation as professional organizations. CREDAI’s Code of Conduct provides clear guidelines for developers to serve their customers in an ethical and transparent manner. Members strictly and voluntary follow the CREDAI Code of Conduct, giving the community transparency and professionalism.

Through events, workshops and grievance redressal cells for consumers, CREDAI promotes best practices and efficient construction practices among developers.

Through these support functions and through active public relations, CREDAI is dedicated to the cause of improving the image of the real estate developer in the eyes of customers, the government and the media.

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