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CREDAI or Confederation of Real Estate Developers Association of India is an autonomous body of over 5000 organized builders and developers from 18 states and cities of India. The CREDAI was formed to organize the real estate industry in India and provide an ethical code of conduct that is mandatory to all the member builders and developers.

 

In order to maintain integrity and transparency in the realty sector, CREDAI lays down certain rules that need to be followed. CREDAI also voices and represents any proactive policies of the real estate industry in India before the government and other concerned authorities. The CREDAI is a kind of single umbrella for the private real estate developers that promises the rapid development of real estate industry in the country.

 

Other functionality of CREDAI includes introduction of latest techniques of construction, dissemination of statistical information, promotion of the interests of construction workers and their education. CREDAI also encourages research in the construction and property development. It also facilitates easy financing as it has close associations with many housing finance institutions and banks.

 

CREDAI holds a national convention once in a year besides several city, state & regional level conferences and technical seminars. Several exhibitions are also organized in major Indian cities like Delhi, Mumbai, Bangalore, and Kolkata along with major world trade centers like Dubai (UAE), Kuwait, Saudi Arabia, London (UK), USA and other places.

 

The fundamental aim of introducing the code of conduct recommended by CREDAI for their registered members who are Developers, Promoters and Builders in India is to maintain the honor, honesty and dignity of the Real Estate Community by them with their clients in the promotion of highest standard of development and building activities and establish transparency with fair dealing and discharge their responsibilities to the community in general.

 

CREDAI has further emphasized that if any Developer, Promoter or Builder is found to violate the code, action would 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 that Developer, Promoter or Builder.

 

 The major highlights of the code of conduct are as under:

 

  • The property under development should have a true disclosure in the ‘Title Certificate’ from a Solicitor / Advocate showing the rights and obligations of the developer while executing the Agreement for sale.
  • 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.
  • The Developer, Promoter or Builder should normally commence booking / sale of flats / premises only after obtaining sanction of plans and commencement certificate and clearances from the competent authorities.
  • The Developer, Promoter or Builder should enter into a proper agreement as per the relevant acts immediately on receipt of earnest money deposit to the extent of 20% of the total cost of the premises / flat from the purchasers.
  • Payments 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 the Developer, Promoter or Builder.
  • The Developer, Promoter or Builder 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.
  • The Developer, Promoter or Builder must ensure to deploy good quality materials and proper workmanship. Specifications as contained in the Agreement for Sale should be strictly 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.
  • The Developer, Promoter or Builder shall, in the Agreement for Sale with purchasers clearly mention the components of the sale price and any and all other receivables.
  • All amenities and common facilities should be clearly worded in the Agreement for Sale and same should be complied with.
  • In case the completion of the building is delayed beyond the period stipulated under the Agreement for Sale with the premises / flat purchaser, the Developer,
  • Promoter or Builder may include a term of payment of an agreed compensation per month till the possession is offered or should return all the moneys received by him from the flat purchaser, along with interest as specified in the Agreement for Sale.
  • The Developer, Promoter or Builder should ensure timely completion and physical possession as committed to the purchaser. It shall be Developer’s, Promoter’s or Builder’s responsibility to obtain completion / occupation certificate.
  • The Developer, Promoter or Builder shall incorporate in his Agreement for Sale, a clause for Defect Liability and subsequent repairs at the cost of Developer, Promoter or Builder for a minimum period of 12 months or as per prevailing laws from the date of handing over of possession or intimation to their clients regarding the readiness to hand over possession.
  • The Developer, Promoter or Builder should at the time of transfer hand over to the Society / Apartment / Association / Company, all original title deeds or certified copies as maybe available and related documents as well as certified copies of sanctioned plans of the buildings including all external service drawings and structural drawings.
  • The Developer, Promoter or Builder shall incorporate necessary clause in the agreement in order to enable the client deriving the rights to inspect the premises during the course of construction.
  • A Developer, Promoter or Builder shall disclose in his Brochures / Handouts / Advertisements or any other publicity material that he belongs to an Association which is a member of CREDAI.
  • The property under development should have a true disclosure in the ‘Title Certificate’ from a Solicitor / Advocate showing the rights and obligations of the developer while executing the Agreement for sale.
  • 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.
  • The Developer, Promoter or Builder should normally commence booking / sale of flats / premises only after obtaining sanction of plans and commencement certificate and clearances from the competent authorities.
  • The Developer, Promoter or Builder should enter into a proper agreement as per the relevant acts immediately on receipt of earnest money deposit to the extent of 20% of the total cost of the premises / flat from the purchasers.
  • Payments 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 the Developer, Promoter or Builder.
  • The Developer, Promoter or Builder 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.
  • The Developer, Promoter or Builder must ensure to deploy good quality materials and proper workmanship. Specifications as contained in the Agreement for Sale should be strictly 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.
  • The Developer, Promoter or Builder shall, in the Agreement for Sale with purchasers clearly mention the components of the sale price and any and all other receivables.
  • All amenities and common facilities should be clearly worded in the Agreement for Sale and same should be complied with.
  • In case the completion of the building is delayed beyond the period stipulated under the Agreement for Sale with the premises / flat purchaser, the Developer,
  • Promoter or Builder may include a term of payment of an agreed compensation per month till the possession is offered or should return all the moneys received by him from the flat purchaser, along with interest as specified in the Agreement for Sale.
  • The Developer, Promoter or Builder should ensure timely completion and physical possession as committed to the purchaser. It shall be Developer’s, Promoter’s or Builder’s responsibility to obtain completion / occupation certificate.
  • The Developer, Promoter or Builder shall incorporate in his Agreement for Sale, a clause for Defect Liability and subsequent repairs at the cost of Developer, Promoter or Builder for a minimum period of 12 months or as per prevailing laws from the date of handing over of possession or intimation to their clients regarding the readiness to hand over possession.
  • The Developer, Promoter or Builder should at the time of transfer hand over to the Society / Apartment / Association / Company, all original title deeds or certified copies as maybe available and related documents as well as certified copies of sanctioned plans of the buildings including all external service drawings and structural drawings.
  • The Developer, Promoter or Builder shall incorporate necessary clause in the agreement in order to enable the client deriving the rights to inspect the premises during the course of construction.
  • A Developer, Promoter or Builder shall disclose in his Brochures / Handouts / Advertisements or any other publicity material that he belongs to an Association which is a member of CREDAI.

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