The fundamental aim of the Code of Conduct for the CREDAI SATARA, is to maintain the honor and dignity of Promoters and Builders in general, to secure a spirit of friendly co-operation between the Promoters and Builders and their customers in the promotion of highest standard of Promotion, Development, and Construction activities and to establish honorable and fair dealing of the Promoters and Builders with their customers; and to establish a spirit of brotherhood in the Association of Promoters and Builders itself and to try and ensure that Promoters and Builders discharge their responsibilities to the community in general. SATARA For the aforesaid objects the members of the CREDAI desire to adopt the following norms of conduct, both in letter and spirit. 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 flat purchasers any legal right enabling them to enforce the same in Court of Law or otherwise.
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If any member is found to violate the code suitable action can be taken against him by the Association even to the extent of his membership being discontinued; after a detailed enquiry by a select committee which recommendation if endorsed by the Managing Committee would lead to the termination of membership of the member.
Any such action taken by the Managing Committee shall be put into effect 30 days after communicating the decision to the member in writing by Registered Post at his address as per records of the Association. The member can appeal the decision of the Managing Committee to the General Body whose decision shall be final and binding. This appeal must be lodged within 30 days of the date of the decision communication by the Managing Committee failing which communicated shall be final and binding.
We, the Member of CREDAI SATARA hereby undertake and agree to abide with and observe this Code of Conduct as approved by the General Body. We also agree to observe any amendment made to the Code of Conduct on account of any changes/amendments to any Housing related Statutes/Acts passed by Central/State and Local Authorities and / or approved by the General Body of the Association.
CREDAI National has formulated this Code of Conduct to govern the business activities of its members across the country by keeping in mind the requirement of providing confidence and comfort to their purchasers. This Code is subject to minor amendments by city units depending on the local conditions and requirements. The word “UNIT” mentioned in this code would mean and include Flat / Villa / Row House or any other type of residential space and also office / retail or any other type of commercial space.
The property under development should have a marketable title and the Developer shall enclose a copy of the “Title Certificate” from a Solicitor/Advocate showing his rights, along with the Agreement for sale.
All sanctions 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.
The Developer should commence booking/sale of flats/premises only after obtaining sanction of plans and commencement certificate from the concerned Municipal Authority/Planning Body and sanction/clearance under the Urban Land (Ceiling & Regulation) Act, 1976; if required, N.A. order, except in cases where finance is to be raised by mutual agreement.
The Developer should enter into a proper agreement as per the relevant Acts immediately on receipt of Earnest Money from the purchasers of flats/premises.
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 or any account whatsoever; except for additional Government 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, escalation can be charged on mutually agreed formulae.
The Developer should construct the building only as per the rules and regulations of the Authority and should not construct any unauthorized structures. He/it should not indulge in any illegal business activity.
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 in addition to usual qualified structural engineers and architects.
The carpet area of the flats/premises should be clearly and unambiguously defined in the agreement.
All amenities and common facilities should be clearly mentioned in the agreement for sale and same should be complied with.
All conditions with regard to infrastructures 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.
Maximum tree plantation should be done near sites on the basis of at least one tree per 100 sq. mtrs., except where it is not possible in congested areas.
Members are encouraged at large sites (more than 4,000 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.
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 under the Maharashtra Ownership Flats Act, if so demanded by the purchaser.
The Developer should ensure timely completion, physical possession, as committed to buyer. It shall be builder’s responsibility to obtain completion/occupation certificate.
During the Defect Liability Period, the Developer should attend to bonafide complaints expeditiously.
The Developer shall maintain separate account in respect of sums received by him from the flat purchaser as Advance or Deposit, sums received on Account of the capital for promotion of a Co-operative Housing Society/Apartment Association or a Company or towards the outgoings, legal charges, etc., and shall utilize the said amounts only for the purpose for which they have been received. Such accounts should be given to the Society/Association/Company not later than 3 months from handing over the charge of the building to such Society/Association/Company, and / or within a period of 3 months from the date of final conveyance, whichever is later.
The Developer should take steps for registration of Co-operative Housing Society or any other body corporate as may be necessary.
The Developer should not charge more than 2% of the purchase price for transferring the rights of the Flat Purchaser under an agreement for sale. Any such consent by the Developer to the flat purchaser for transferring his rights under agreement of sale should not be unreasonably withheld, provided the flat purchaser pays, and/or is ready and willing to pay full amount of consideration under the agreement for sale together with transfer fees as aforesaid and other dues payable.
The Developer should not inordinately delay the execution of the Conveyance or any other similar instrument in favour of the common organization of the flat holder, after the development and sale of entire scheme and after all amounts payable by the purchasers are paid to the Developer.
The Developer should at the time of transfer hand Society/Apartment / Company all original title deeds and related documents as well as all plans of the buildings including all external service drawings and structural drawings.
In case there be any dispute of any member of the Association with any person or flat holder or Government or Semi Government Body or Authority or Local Authority, and if the Association is asked to intervene, the Managing Committee of the Association will consider such request and decide in its absolute discretion whether to intervene or not depending upon the merits of the case and wherever possible the Association will make efforts to resolve the said dispute by amicable settlement or otherwise on merits of the case. However, any such mediation, even if it be with the consent/concurrence of both the disputing parties, shall not be construed as Arbitration under the Indian Arbitration Act.
Any decision resolution pertaining to the Code of Conduct, that is taken or passed in the General Body Meeting or Managing Committee Meeting, is
This code applies to all the members of the Association. The provisions of this code shall be applicable for projects launched after 10th September, 2011. It is provided that no provision of this code shall apply on the bookings concluded on projects launched prior to 10th September, 2011
There shall be a true disclosure of the property under development in the “Title Certificate”. A copy of the Title Certificate from a sollicitor / Advocate shall be provided alongwith the Agreement to sell.
Approved sanction plans shall be made available for perusal of the purchaser at the time of signing the Agreement. In case the purchaser requires a copy of the same and also the copies of the title documents, the same would be provided on actual charges.
Normally the booking of units shall be commenced only after obtaining sanction of plans from the competent authorities. If booking is made before obtaining sanction of plans, the purchaser shall be made aware of this fact at the time of the booking and in addition a true disclosure of the same shall be incorporated in the Agreement.
Agreement to sell will be entered into immediately on receipt of full booking amount/earnest Money
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 recoverables such as;
Note: The Developer is not entitled to collect charges and/or costs which are not mentioned in the Agreement.
Payment receivable under the Agreement to sell shall be scheduled according to the progress of the work.
There will not be any escalation in price/consideration once the Agreement to sell is executed except as necessitated on account of levy of additional taxes, levies etc, court orders or in terms of the relevant Acts or under force majeure conditions. However, if there is a spacific understanding between the Developer and Purchaser which is spelt out in the Agreement, escalation may be made applicable as per terms of the Agreement.
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.
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.
All amenities and common facilities shall be clearly mentioned in the Agreement to sell. Wherever the common amenities are to be transferred to the Association/Society etc by a Deed as per statutory requirements, the same shall also be complied with.
All conditions with regard to infrastructure as set out in the sanction plan shall be fully complied with and the building and its premises shall be left in a clean and habitable condition.
The Agreements will also contain a clause with regard to cancellation/forfeiture covering issues such as amount of forfeiture, interest charges, liquidated charges, period for repayment etc. applicable in the event of non-payment of installments or other components of agreed consideration.
The Agreements will contain a clause dealing with defect liability for a minimum period of 12 months or as per prevailing laws, if any (whichever is longer) from the date of completion or intimation to their clients regarding the readiness to hand over possession, whichever is earlier. The defect liability shall be limited to the defects in the construction (i.e. structure).However, air cracks in plaster masonry, warpage in doors and windows shall not be considered as defects. Defect liability shall not cover force majeure situations such as damage resulting from war, flood, earthquakes etc. The defect liability is not applicable on the bought out items most of which are covered under warranty by the manufacturers themselves. However, in the event of recurring problems with the bought out items, the Developer shall co-operate with the purchaser in sorting out the issue.
The Developer shall facilitate the Purchasers for formation of Association of Owners / registration of co-operative Housing Society or any other body as may be prescribed as per statute, subject to co-operation from all the purchasers.
The Developer shall maintain a separate account in respect of any sums received by them from the purchasers as Advance or Deposit or sums received towards corpus for promotion of a co-operative Housing Society / Apartment Association or towards out goings, legal charges, etc, and the said amounts shall be utilized only for the purpose for which the same have been received. Accounts on such items shall be provided to the Society / Association / Body not later than 3 months from handing over the charge of the building to such Society / Association / Body.
The Developer shall not delay execution of conveyance or any other similar instrument beyond six months from the date of receipt of Occupancy Certificate pertaining to the building in question and after all amounts payable by the purchasers are paid to the developer
At the time of handing over the project to the Society / Apartment Owners’ Association / Body, the Developer shall also hand over all original title deeds as maybe available or certified copies and related documents as well as copies of sanctioned plan of the buildings including all external service drawings and structural drawings.
Necessary clause in the Agreement shall be incorporated to enable the client and his family members deriving the rights to visit and inspect the premises during the course of construction. A disclaimer clause shall also be incorporated in the Agreement stating that the Developer shall not be held liable for any loss / cost / damage or any other expenses caused due to such visit, if any, on acount of any accident that may occur at the time of inspection during construction or after construction by the purchaser or any family member accompanying him/her.
Tree plantation shall be done near/at sites as per local rules or the CREDAI recommendation, except where it is not possible in congested areas or due to technicaland similar reasons.
The Developer shall endeavor to establish creches and educational facilities for the children of the labour, along with other possible labour welfare activities, such as periodical medical check-up, insurance etc in sites which are more than 4000 sq.mtr.nl mln
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/entertained 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, mediation, or arbitration shall be worked out independently by CREDAI.
The Redressal forum will not adjudicate on any issue which is sub judice with any court or consumer forums.
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