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.

Payments of installments
Payment receivable under the Agreement to sell shall be scheduled according to the progress of the work.

Escalation
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 Carpet Area and Super Built Area

           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
  • Corridors
  • 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
  • Mumty
  • 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.

Plans and Construction

• 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.

Construction time frame, Compensation for delay

• 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 Purhaser 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.

Formation of a Society or a Body Corporate
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.

Society Account/Other Deposits
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.

Conveyance of Title
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

Disclosure

• 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.

Original or Certified Copies of Title Deeds, Service Drawings etc

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.

Inspection by the Client
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
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.

Labour Welfare
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

Consumer Redressal Forum
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:

Membership and types

There shall be following categories of membership:

• Member Association
• Associate Member
• Overseas Associate
• Invitee Member

Member Association shall be of two types:

• Any State level Federation / Organization of Promoters and Builders and Real Estate Developers representing a State in India having at least two City / Town level Associations as its members, except MCHI (Maharashtra Chamber of Housing Industry), being the founder member, shall continue to enjoy the status of State Federation.The exiting State level Federation (s) not fulfilling the above criterion, in order to be considered as such, shall have to fulfil the above requirement within a period of six months, failing which the said Federation(s) shall automatically become a city / town level association.
• Any City / Town level Association / Organization of Promoters & Builders and Real-Estate Developers in any place where there is no State level Federation in existence. Upon formation of the State level Federation, such a State level Federation will become the Member and the concerned city level association will cease to remain a member of CREDAI National upon which it will be a member of the new State level Federation.

Member Association:

Any State level Federation / Organization of Promoters and Builders and Real Estate Developers representing a State in India having at least two City / Town level Associations as its members, except MCHI (Maharashtra Chamber of Housing Industry), being the founder member, shall continue to enjoy the status of State Federation.The exiting State level Federation (s) not fulfilling the above criterion, in order to be considered as such, shall have to fulfil the above requirement within a period of six months, failing which the said Federation(s) shall automatically become a city / town level association.

Any City / Town level Association / Organization of Promoters & Builders and Real-Estate Developers in any place where there is no State level Federation in existence. Upon formation of the State level Federation, such a State level Federation will become the Member and the concerned city level association will cease to remain a member of CREDAI National upon which it will be a member of the new State level Federation.

Overseas Associate:

Foreign Association or undertaking engaged in real estate activities may apply to become an Overseas Associate provided that the Governing Council Board may, at its discretion with the concurrence of not less than three-fourths of its total strength, relax or vary any of the qualifications for membership specified herein. A circular or letter duly signed by a member of the Governing Council Board expressing his approval or disapproval of the relaxation or Variation, as the case may be, shall be entered in the Register of Members.

Associate Member:

Housing Finance Companies, Commercial Banks and Financial Institutions having Activities in the field of Real Estate, Consultants, Association or Council or Organization having interest in real estate development activities, Professional Institutes/ Organizations/ Boards dealing with collection and dissemination of Information, Research and Development shall be eligible to be invited to become Associate Member of the Confederation.

Invitee Members:

All members of City level associations shall be invitee members without having voting right

Admission of Membership:

• Any State / City / Town level Association desirous of becoming a Member of the Confederation shall apply in the prescribed form to the Secretary and shall be proposed and seconded by a member of the Confederation and re commended by a Member of the Governing Council Board. Such an application shall be accompanied by a Demand Draft in favour of “CREDAI” towards payment of entrance fee as well as Annual Subscription.
• If the Governing Council Board considers it necessary, it may constitute a Screening Committee for admission to membership as “Member association” and may also lay down such guidelines and delegate such powers to it as it may deem fit.
• Associations may be admitted to membership by the Governing Council Board with the approval of majority of the members of the Governing Council Board present, and voting at a Meeting, so that in any event, such admission is approved by a majority of the total membership of the Governing Council Board. A circular or letter duly signed by a member of the Governing Council Board expressing his approval or disapproval of the admission shall be treated as valid for the purpose of this Article.
• If no reply is received from any such member of the Governing Council Board within thirty days of being asked to signify his approval or disapproval of such admission, the Governing Council Board may refuse any application for membership without assigning any reason.
• The Governing Council Board shall decide any question which may arise as to the eligibility or otherwise of any applicant for admission as a member and its decision shall be final.
• If the application is rejected, the Secretary and/or Director General will intimate the rejection to the concerned Applicant and refund to the concerned Association the sum paid for the purpose.
• If the application/organisation is accepted by the Governing Council Board, then the Secretary and/or Director General shall notify the acceptance thereof to the applicant in writing. He shall also furnish the applicant with a copy of the Constitution of the Confederation. The date of enrolment of the member shall be the date on which his application is accepted by the Governing Council Board.
• Any undertaking having been invited to become an Associate Member of the Confederation shall apply in the prescribed form for the purpose to the Secretary and shall be recommended by any member association of the Confederation. Such an Application shall be accompanied by a Demand Draft in favour of the Confederation. Alternatively, such an undertaking may first apply on their letterhead to the Secretary and once the prescribed form is received by them, they may forward that form duly completed along with entrance fee and annual subscription.
• The Governing Council Board may refuse any application for admission as Overseas Associate without assigning any reason.
• Once the membership is granted, the "member association" on their letter head and any other stationery will include under their association name a CREDAI logo and a line mentioning Member – CREDAI. In the case of member associations joining after Adoption of these Articles, it would be mandatory on their part to include in their name as a prefix or suffix the acronym “CREDAI” as also the name of City or Town they represent.

Rights and obligations:

Any Association or Undertaking having been admitted to Membership of the Confederation will be deemed to have agreed to amend their bylaws in synergy with these articles of association and also to abide by and be subject to these Articles, rules and regulations, bylaws and standing orders of the Confederation that may be in force from time to time. However, this shall not apply to associate members or overseas associates.

Entrance fee and subscription:

The Entrance fee and annual subscription the payable by each category of Members for the time being shall be as follows:

Annual subscription:

Each State Federation shall pay this fee of Rs.1 000/- per individual member of their city association which is subject to concession provided herein below:

However, the annual subscription for State Federations will be minimum Rs.4,00,000/- and maximum Rs.10,00,000/-

The Governing Council Board of the Confederation shall have the authority to alter from time to time the subscription stated herein.

Each and every type of member of the Confederation shall pay such additional Subscription, not exceeding the annual subscription for the time being, as may be decided by the Governing Council Board from time to time having regard to the requirements of the Confederation. However, such additional subscription shall not be payable more than once in any period of three years.

All subscription and admission fees shall be payable in advance by Demand Draft only on such date or dates as may be designated by the Governing Council Board from time to time.

If the Annual Subscription or any other amount due to the Confederation is not paid in time, the said amount shall require to be paid along with interest @ 12% PA.

No member shall have any voting rights unless entire dues are paid.

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How to become

All associations of promoters and builders of real estate as well as associations of real estate developers anywhere in the country can become CREDAI members. The membership is not open to individual developers or government or quasi-government organizations.

All individual developers and builders can become members of the city- or state-level developer associations, which can in turn become members of CREDAI.

To become a CREDAI Member, please send us an email to info@credai.org