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...