Builders to Develop Transparency for Better Real Estate Dealings

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Aiming to bridge the gap between builders and consumers, the Confederation of Real Estate Developers’ Association of India (CREDAI) proposed a code of conduct. As per the code, in addition to disclosing all the components of a sale consideration, the builders have to develop transparency in dealings and documentations. All the member developers are bound by the conduct code to follow the practice which thereby helps in preventing possibilities of later disputes with consumers.

Any increase in prices in the cost component and the applicable time frame have to be disclosed to the concerned customer. The builders should also declare to the buyer of a slice of property in the project, if any rights are retained. Any issues about the right of terrace areas should be made clear. The consumer should be informed about any warranties including those of any products which are used in the project. They should also make clear about the period of validity for warranty.

Generally, many issues of dispute arise with respect to the delivery period. It is, therefore, necessary for the builder to mention clearly the delivery period of developmental area. Any possible circumstances which may likely affect the handover should also be mentioned beforehand. It is also necessary to be clear on the title of the property.

Specific features incorporated by the code include declaration of payment schedule on part of the customer and information on progress of construction. The conduct code offers a guarantee to the customers on compliance of building laws to provide protection from any possible adverse consequences of violation. The code, therefore, is meant to build up the customer confidence. Furthermore, the CREDAI is planning to develop a grievance redressal mechanism to avoid the litigation in case of disputes between the consumer and the developer.

Source: The Hindu

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