Code Of Conduct
We the members of REDA adopt the following
code of conduct. Any addition / deletion can be effected from time
to time with the consent of the General Body, proposals must be
circulated 30 days prior to the General Body meeting.
TITLE
INSPECTION
OF SANCTIONS
BOOKING OF PREMISES
AGREEMENT OF SALES
PAYMENTS
ESCALATION
CONSTRUCTION
OF BUILDING
QUALITY OF
CONSTRUCTION
PLANS AND SALEABLE
AREA
CONSTRUCTION, TIME FRAME, PENALTY, GENERAL CONDITIONS
COMPONENTS
OF COSTS
DESCRIPTION OF
AMENITIES
INFRASTRUCTURAL
REQUIREMENTS
TREE PLANTATION
LABOUR WELFARE
REFUND
OF MONEY
FORFEITURE
MODE
OF CONVEYANCE
POSSESSION
DEFECT
LIABILITY PERIOD
FORMATION
OF A SOCIETY OR A BODY CORPORATE
SOCIETY
ACCOUNTS / OTHER DEPOSITIES SUCH AS STAMP DUTIES
TRANSFER
CHARGES
TRANSFER OF TITLE
DISCLOSURE
HANDING
OVER OF ORIGINAL OR CERTIFIED COPIES OF TITLE DEEDS, SERVICE DRAWINGS,
ETC
INSPECTION BY THE
CLIENT
MEDIATION/ARBITRATION
IN DISPUTES |
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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 along
with the Agreement for sale.
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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 at the time of signing the agreement.
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The Developer should normally commence booking / sale of flats/
premises only after obtaining sanction of plans and commencement
certificate and clearances from the competent authorities. If for
any reason booking is entered into with purchasers before obtaining
all required clearances the purchaser must be made aware of this
fact by way of a true disclosure in the agreement and or the title
certificate.
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The Developer should enter into a proper agreement as per the
relevant Acts immediately on receipt of Earnest Money Deposit from
the purchasers of flats / premises.
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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.
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The developer should not enhance the price of the flats / premises
once the agreement for sale is executed – on any account whatsoever;
except for additional levies, taxes, court orders or in terms of
the relevant Acts or under force majeure conditions. However,
if there is a specific understanding between the Developer and purchaser
which is spelt out in the agreement, escalation can be charged on
mutually agreed formulae.
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The developers should construct the building only as per the rules
/ sanctioned plan and regulations of the Authority. Any variations
should be within prescribed and permitted and prevailing norms/rules.
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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.
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A. PLANS: - A member:
(a) Shall conform his building plans strictly to the prevailing
regulations and byelaws.
(b) Shall make available copies of sanction plan and other permissions
available to the purchaser on request.
© Shall display the sanctioned plan date & number in a
prominent place at the construction site.
B. SALEABLE AREA:-
A member shall offer his units for sale based on “saleable
area”, which may comprise of the following components only:
(a) Plinth area including balconies and other detached habitable
area, if any, such as servant’s room etc. for exclusive ownership.
(b) Mezzanine floor, if any.
(c) An agreed % age of the double height, if any.
(d) Proportionate share from the common areas such as entrance lobby,
staircases, upper floor lobbies & landing, lift core at every
level, lift machine room, generator room, electrical room, security
room, club house, indoor sports room/s, security cabin, general
toilets for servants / drivers any any such amenities provided these
have not been charged separately plus any other constructed area
which is counted in fsi/far.
NOTE:
Ground space for garden and / or terrace space to be allotted for
exclusive use if any shall be indicated any charged for separately,
The area to be added to the saleable built-up area shall not exceed
the following norm:
• If the area of the terrace/garden is upto 10% of the flat
area then full area may be charged
• If the area of the terrace/ garden is upto 50% of the flat
area then full area may be charged for 10% and 50% for the remaining
additional area beyond 10%..
• If the area is beyond 50% then it shall be charged as above
for upto 50% and at 35% for the area beyond 50%.
• Plinth area shall be computed by measuring from wall to
wall. While exclusive walls shall be fully accounted, shared walls
shall be split.
• All agreements for sale of any premises shall contain a
floor plan showing the internal dimensions from which the carpet
area can be computed.
• 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.
Saleable area shall not include:-
Underground sump, water tanks, compound walls, septic tank, walk
way, ramp open to sky, swimming pool, open sports facilities, chajjas,
weather sheds, flower beds, lofts, common terraces, stairwell ducts
and voids etc. and the like.
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A member:
(a)Shall in his agreements disclose a definite time frame for completion
of construction upto the stage of occupation or completion certificate.
The completion of construction shall be deemed to complete only
if certain minimum amenities such as proper ramp to enter the basement,
compound wall with gates, proper staircase leading to the terrace,
properly constructed underground and overhead water tanks with adequate
capacity, proper 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 agreements, necessary penal clause
applicable in case of delay in completion of construction.
© shall construct the building the strictly according to the
specification or shall provide materials of equivalent quality.
(d) Shall adhere to the fire safety regulations as well as statutory
design requirements for seismic design and also any and all safety
regulations as required and applicable.
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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 clearly spell out all the amounts & charges
recoverable based on actuals 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. 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 oor any other levies
for registration of the Sale Deed.
(iii) Sales Tax on works contract 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.
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All amenities and common facilities should be clearly mentioned
in the agreement for sale and same should be complied with.
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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.
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Tree plantation should be done near/at sites as per local rules
or at least 10 trees per 1000 Sq. Mtrs. Of plot area, except where
it is not possible in congested areas.
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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.
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In case the completion of the premises along with all its amenities
and services is delayed beyond the period stipulated under the agreement
for sale with the flat purchaser, the developer should return all
the money received by him from the flat purchaser if so demanded
by the purchaser within six months along with the interest of 5%
per annum. This case is applicable where the customer payment is
upto date.
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A. Suo motto cancellation by the purchaser
Forfeiture will be 2% of the agreement/allotment value of the flat
as well as land the entire money will be paid within 4 months.
B. Cancellation by the Builder
In case of default payment the Builder has got right to cancel the
booking by giving minimum two notices for 15 days each to clear
the dues with interest failing which builder has got right to pay
back his/her money within 60 days after deducting the interest @
18% per annum for the unpaid dues as per booking agreement norms.
C.Force Majeure condition
In force majeure situation if customer demands to cancel the booking
the refund will be made after deduction of 10% of the amount payable
by the customer.
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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.Ft./Sq.Mtr 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
(ii) Shall allot specific interests 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.
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The developer should ensure timely completion, physical possession,
as committed to buyer. It shall be builder’s responsibility
to obtain completion / occupation certificate.
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.
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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
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 etc.
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The developer should take steps for registration of Co-operative
Housing Society or any other body corporate as may be necessary.
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The developer shall maintain separate account in respect of 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 a 3
months from the date of final conveyance, whichever is later.
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The developer should not normally charge transfer charges but
if 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.
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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.
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(a) A member shall disclose in his brochures / hand-outs/advertisements
or any other publicity material that he belongs to an association
REDA.
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The developer should at the time of transfer hand over to the
society / apartment / association / company all original title deeds
or certified copies as may be available and related documents as
well as certified copies of sanctioned plan of the buildings including
all external service drawings and structural drawings.
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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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1. Complaints should be considered /entertained by the association
only if the builder is a member of the association.
2. The modalities for such intervention or mediation or arbitration
shall be worked out independently by the member.
3. 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 of local authority, and if the member is asked
to intervene, the Executive 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.
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