MODE
OF CONVEYANCE
As per the CREDAI (Confederation of Real Estate Developers Associations of India) code of conduct, a member
- Shall clearly indicate in his agreements, the type of conveyance proposed to be effected i.e. whether undivided interest or the unit as a whole or by means of any other scheme and also mention either the extent of divided or undivided interest in sqft/sqmtrs or the percentage of undivided interest and in any case shall take care to 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 extent of land.
- Shall allot specific interest and / or entitlement in land for every car parking space.
- Shall make available the copies of title documents to the purchasers on request.
- Shall incorporate a condition in his agreement 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. If the developer intends to reserve some specific rights such as allotment of ground space for garden (in the setback area), for private use of some units, such intention shall also be mentioned in all the agreements pertaining to the project.
Possession
The developer should ensure timely completion, physical possession,
as committed to buyer.It shall be builder's responsibility to obtain completion/occupation
certificate from the local authority. Developer shall incorporate in his agreements,
a clause that the delivery / possession of the flat shall be given to the client
against complete settlement of the entire consideration and all other components
of sale price / quotation.
Defect Liability Period
Developer shall incorporate
in his agreements, a clause for defect liability for a minimum period of 12 months
or as per prevailing laws (whichever is more) from the date of handing over of
possession or intimation to their clients regarding the readiness to hand over possession,
whichever is earlier and which shall be limited to the defects in the
construction (i.e. structure) and not on the bought out materials most of which
are covered under varied warranty periods by the manufacturers themselves.However,in the event of recurring problem with the bought out materials, the member
shall co-operate with the purchaser in sorting out the issue.This defect
liability shall not cover force majeure situations such as damage resulting from
war, flood, earthquakes etc.
Formation
of a Society or a Body Corporate
The developer should take
steps for registration of Co-operative Housing Society or any other body corporate
as may be decided upon by the developer in the interest of the flat purchasers.
Society
Account / Other Deposits like Stamp Duty.
The developer shall maintain separate account in respect
of any sums received by him from the flat purchases 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 out goings, 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 a period on months from the date of final conveyance,
whichever is later.
Transfer Charges
If a transfer charge is to be 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 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/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.
Transfer of Title
The developer should not inordinately delay the execution
of the conveyance or any other similar instrument in favor 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.
Disclosure
- A member may disclose in his brochures / hand-outs / advertisements or any other publicity material that he belongs to an association which is a member of CREDAI.
- May incorporate a clause in his brochures and or agreements that the same is subject to arbitration by the designated committee of Arbitrators appointed by the member Association of CREDAI.
Inspection by Client:
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.
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