CODE OF CONDUCT

This 'Code of Conduct' is recommendatory in nature. Member Associations can forward modifications, if any, in order to meet their local conditions, provided such changes are not out of harmony with the essence of these contents.

INTRODUCTION

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 a 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 and to try and ensure that Developers, Promoters and Builders discharge their responsibilities to the community in general.

SALIENT FEATURES OF CODE OF CONDUCT:

• 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 along with the Agreement for sale.

• 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.

• The developer should enter into a proper agreement as per the relevant acts immediately on receipt of earnest money deposit from the purchasers of flats.

• 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 developer.

• 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.

• The developer must ensure good quality materials and proper workmanship. Specifications as per agreements 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

• A member shall, in the agreement with purchasers clearly mention the components of the sale price and any and all other receivables.

• All amenities and common facilities should be clearly mentioned 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 flat purchaser, the Developer should return all the moneys received by him from the flat purchaser, along with interest as specified in the agreement.

• The developer should ensure timely completion, physical possession, as committed to buyer. It shall be builder's responsibility to obtain completion / occupation certificate.

• The developer shall incorporate in his agreements, a clause for defect liability 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 should not normally charge transfer charges but of charged it must; be spelt out in the agreements and should not exceed more than 2% of the purchase price for transferring the rights of the flat purchaser under and agreement for sale.

• The developer 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 plan of the buildings including all external service drawings and structural drawings.

• The developers 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 member shall disclose in his brochures / handouts /advertisements or any other publicity material that he belongs to an association which is a member of CREDAI.