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Underground sump, water tanks, compound walls, septic tank, open to sky walk ways, , open to sky swimming pool, open sports facilities, chajjas, weather sheds, unaccessible flower beds, lofts, common open to sky terraces, stairwell ducts and voids etc. and the like.
10. CONSTRUCTION, TIME FRAME, PENALTY, GENERAL CONDITIONS:
A member
(a) Shall in his agreements disclose a definite time frame for completion of construction up to the stage of occupation or completion . The construction shall be deemed to be complete when certified by the project architect & provided certain minimum amenities are properly provided where necessary such as ramp to enter the basement, compound wall with gates, staircase leading to the terrace, constructed underground and overhead to the terrace, underground and overhead water tanks with adequate capacity, ladder leading to the overhead tank besides such other basic requirements to make the complex habitable are provided, whether mentioned specifically in the list of specifications or not.
(b) Shall incorporate in his the agreements, a clause applicable in case of a delay in completion of construction to transparently state the conditions under which compensation to the Purchaser would be due.
11. COMPONENTS OF COST
A member shall, in the agreement with purchasers clearly mention the components of the sale price and any and all other receivables. Unmentioned charges and /or costs shall not be collected from purchasers. The agreements should transparently & clearly spell out all the amounts and charges recoverable based on actual such as
(i) Proportionate share of the deposits, costs, on the basis of sq.ft/sq.mts of saleable area or on unit basis for obtaining connections from electricity board and water authority and access from road authorities. Proportionate share of amounts paid to the sanctioning authority by way of development charges, scrutiny fee. If the exact share is not available at the time of signing the sale agreement, an approximate estimate shall be provided.
(ii) Stamp duty, registration fee, expenses or any other levies for registration of the sale deed.
(iii) Service tax/ Vat, Sales Tax on works contract,or any other tax from time to time if applicable.
(iv) Advocate’s fee for registration / documentation charges.
(v) Cost, expenses, fee etc for formation of Society/Association of Apartment Owners/Body corporate and registration of deed of Declaration etc.
(vi) Maintenance deposit / charges or one time maintenance charge.
(vii) Taxes, levies and charges to the statutory authority.
(viii) any charges or deposits incurred for labour welfare or environment 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.
12. DESCRIPTION OF AMENITIES
All amenities and common facilities should be clearly mentioned in the agreement for sale and same should be complied with. The developer should also ensure transfer of common amenities to the association by a proper deed as may be appropriate.
13. INFRASTRUCTURAL REQUIREMENTS
All conditions with regard to infrastructure 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.
14. TREE PLANTATION
Tree plantation should be done near/at sites as per local rules or the CREDAI recommendation of 10 trees per1000 sq.mtrs of plot area, except where it is not possible in congested areas.
15. LABOUR WELFARE
Members are encouraged, at large sites (more than 4000 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.
16. REFUND OF MONEY
In case the completion of the building is delayed beyond the period stipulated under the agreement for sale with the flat purchaser and with full regard to force majuere conditions mentioned in the agreement, the Developer should return all the moneys received by him from the flat purchaser, along with interest as specified in the agreement. Suitable refund condition or compensation should be clearly mentioned in the agreement.
17. FORFEITURE:
Developer shall incorporate in the agreements, a clause to the effect that in the event of non-payment of installments or other components of agreed sale price, the cancellation and forfeiture of any amount shall be in terms of the agreement which must transparently state addressing issues such as amount of forfeiture, interest charges, liquidated charges,period for repayment etc
18. MODE OF CONVEYENCE:
A member:-
(i) 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 sq./ Sq.Mtr or the percentage of undivided interest and in any case shall take care to ensure that aggregate of divided of undivided interest in land allotted to all the units of a project shall not be in excess of the extent of land.
(ii) Shall allot specific interest and / or entitlement in land for every car parking space.
(iii) Shall make available the copies of title documents to the purchasers on request.
(iv) 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), 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.
19. 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.
20. 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.
21. FORMATION OF A SOCIETY OR A BODY CORPORATE:
The developer should take steps for registration of co-operative Hosing Society or any other body corporate as may be decided upon by the developer in the interest of the flat purchasers.
22. SOCIETY ACCOUNT / OTHER DEPOSITS SUCH AS STAMP DUTIES:
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 and / or within a period of 3 months from the date of final conveyance, whichever is later.
23. 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 / 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.
24. TRANSFER OF TITLE:
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.
25. DISCLOSURE.
(a) 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.
(b) 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.
26. HANDING OVER OF ORIGINAL OR CERTIFIED COPIES OF TITLE DEEDS, SERVICE DRAWINGS, ETC:
The developer should at the time of transfer hand over to the society / apartment / association / company all original title deeds or certified copies as maybe available and related documents as well as certified copies of sanctioned plan of the buildings including all external service drawings and structural drawings.
27. INSPECTION BY THE 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.
28. CONSUMER REDRESSAL FORUM
Every CREDAI member association will undertake steps to form a consumer redressal forum to address the grievances of consumers against the developer members:
1. Complaints should be considered / entertained by the member association only if the builder is a member of the concerned association and will be restricted to customer builder disputes alone
2. The modalities for such intervention or mediation or arbitration shall be worked out independently by the member associations.
3. The consumer redressal forum will not adjudicate on any issue in which is subjudice with any court or consumer forums.
4. The member association in all the agreements with the Purchaser may insert a clause that in the event of there being any dispute with regard to the Agreement/s, which is not resolved by negotiation with the Purchaser, the same may be referred for mediation by member association. If the parties (member association & the purchaser) are unable to arrive at an amicable settlement in the mediation, the aggrieved party may approach court of law or have the matter referred for arbitration as agreed by them under the Agreement.
5. The member association shall form a Mediation committee/consumer redressal forum of three members who shall deal with the matters referred to the member association. The procedure for mediation and other modalities shall be worked out independently by member associations.
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