Code of Conduct is a document of principles that binds all members of CREDAI Karnataka. It is the most important founding stone of the association and has been included in the proposed Real Estate Regulatory Act. This document lists the guidelines and a mandatory set of laws that all members have to implement and abide by. 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.
The Agreement shall clearly mention all the components of the sale consideration including variation in rate, if any, applicable towards garden / ground space or terrace allotted for private use. The Developer shall also mention all the other future estimated recoverable such as;
- Proportionate share of deposits, costs etc for obtaining connections from electricity board, water authority, permission for road cutting or access from road authorities etc and also proportionate share of amounts paid to the sanctioning authority by way of development charges, scrutiny fee etc on the basis of sq.ft / sq.mts of SBA/Saleable area or on unit basis.lithe exact share is not available at the time of signing the Agreement to Sell, an approximate estimate shall be provided.
- Stamp duty, registration fee, expenses or any other levies for registration of sale deeds.
- Service tax/Vat, Sales Tax on works contract, or any other taxes or levies from time to time, if applicable.
- Advocate’s fee for registration / documentation charges.
- Cost, expanses, fee etc for formation of Society/Association of Apartment Owners/Body Corporate as the case may be and for registration of Deed of Declaration etc.
- Maintenance deposit / charges or one time maintenance deposit / charge, as decided by the Developer.
- Any other taxes, levies and charges payable to the Statutory Authority.
- Any charges or deposits incurred for labour welfare or environmental 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.
Note: The Developer is not entitled to collect charges and/or costs which are not mentioned in the Agreement.
- Built Up Area: Built up Area, as per CREDAI definition, shall mean the total Poly Line (P. line) area measured on the outer line of the unit including balconies and/ or terraces with or without roof. Built Up Area shall also include Mezzanine floors, if any and also detached habitable areas, if any, such as servant’s room etc. allotted for exclusive ownership. The outer walls which are shared with another unit shall be computed at 50%. Remaining outer walls are computed at 100%.
- Carpet Area: Carpet Area, as per CREDAI definition, shall mean the area arrived at by deducting the areas of core thickness (i.e unplastered thickness) of all the outer walls from the above defined Built Up Area.
- Super Built Area (SBA): The Super Built Area, as per CREDAI definition, shall mean;
Built Up Area as defined above plus the proportionate share of the following; A certain percentage of the double height areas or terraces,if any.
- Entrance Lobby
- Stair Cases
- Lift Shafts/ Lift core at every level
- Lift Lobby and all other lobbies, landings etc
- Lift Machine rooms
- Generator rooms
- Electrical rooms and the rooms built for substations/ transformers, if any.
- Gas banks
- Garbage room
- Club house
- Security room
- Indoor sports rooms
- General Toilets for Common Servants/ Maintenance Staff/ Drivers
- And any other common areas constructed not included above, provided they are not separately charged.
SUPER BUILT 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, weather sheds, inaccessible flower beds, lofts, common open to Sky terraces, stairwell ducts and voids etc. and the like.
- Garden / ground space area or terrace area allotted for private usage (without exclusive ownership), if any shall be separately and clearly mentioned in the offer document.
- Specific parking areas are limited common areas and may be allotted separately by the Developer to the Purchaser.
- All the Agreements to sell shall contain a floor plan showing the internal dimensions from which the built up area can be computed.
- Either the Built Up Area or the Carpet Area, as decided by the Developer or as is required by the local laws shall be mentioned in the Agreement to sell along with the Super Built Area.
- Details showing how the saleable area is arrived at with specific details of the common area shall be disclosed with clarity duly certified by an architect as per above norms at the time of booking.
- The sanctioned plan with date & number shall be displayed in a prominent place at the construction site.
- Construction of the buildings shall be only as per the rules / sanctioned plans, rules and regulations of the Local Bodies. Variations, if any, shall be within the prescribed, permitted and prevailing norms / rules.
- The Agreements shall contain a definite time frame for completion of construction. The construction shall be deemed to be complete when certified by the project architect & after constructing as per specification and in addition certain standard infrastructure requirement such as ramp to enter the basement, compound wall with gates, staircases leading to the terrace, underground and/or overhead water tanks, ladder leading to the overhead lank and such other basic requirements to make the complex habitable, wherever necessary, whether all these items are mentioned specifically in the Agreement or not.
- Agreements shall also contain a clause for compensation in case of a delay in completion of construction stating the conditions under which the Purchaser is entitled for a compensation. Similarly,the Purchaser will also be liable for a penalty in case of any delays in taking possession of the unit by the Purchaser after completion of the unit.
- Every effort shall be made to complete the building, as committed to buyer. While it shall be the responsibility of the Developer to obtain completion/occupation certificate from the Local Authority, a specific time for the same is not in the hands of the Developer, due to bureaucratic delays. Any delay in completion due to this reason, not attributable to the Developer’s actions, shall not be construed as delay.
- The Agreements shall clearly indicate the type of conveyance proposed to be effected i.e. whether on the basis of undivided interest or on unit basis or based on any other scheme and also mention either the extent of divided or undivided interest in Sqft/ Sq.Mtr or the percentage of undivided interest. In any case, the Developer shall ensure that aggregate of divided or undivided interest in land allotted to all the units of a project shall not be in excess of the total extent of land.
- The Agreement will have a condition 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. lf 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.
- CREDAI logo shall be printed in all the Brochures, hand-outs, advertisements and beyond a particular size or any other publicity material.
- The Agreement shall also contain a clause stating that the said Agreement is subject to arbitration by the designated committee of Arbitrators appointed by CREDAI.
Every Agreement between the Developer and the Purchaser shall have a clause that in the event of there being any dispute with regard to the Agreements, which has failed to be resolved through negotiations with the Purchaser, the same may be referred for mediation to CREDAI and that all the grievances shall be referred only to consumer redressal forum first, which is being formed by CREDAI If the parties are unable to arrive at an amicable settlement in the mediation, the aggrieved party may approach the courts of law or have the matter referred to arbitration as agreed by them under the Agreement. And, redressal by CREDAI shall be subject to the following conditions:
- Complaints shall be considered / enteriained by the member association only if the developer is a member of the concerned association and will be restricted to customer builder disputes only.
- The modalities for such intervention or mediation or arbitration shall be worked out independently by CREDAI.
- The Redressal forum will not adjudicate on any issue which is subjudice with any court or consumer forums.