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Builders told to be transparent

T. Lalith Singh

CREDAI brings out code-of-conduct


Developers have to declare any price escalation in the cost component

CREDAI plans to come up with grievance redressal mechanism soon


HYDERABAD: A developer has to be transparent in dealings and documentations besides, disclosing all the components of a sale consideration.

The code-of-conduct brought out by the Confederation of Real Estate Developers' Association of India-(CREDAI), local chapter, has made it clear that developers have to declare if there was any price escalations in the cost component and the applicable time frame to the customer concerned.

To the buyer of a slice of property in their project, developers are also expected to disclose if any rights are retained and make issues clear about rights of terrace areas. In case of any warranties, including those on products that goes into the project, along with period of validity should be informed to the end-user.

The conduct code with an objective to bridge the gap between builders and consumers in real estate dealings is binding on all members. “Members have to sign this code and practise it in their operations to ensure transparency and prevent possibilities of later disputes with consumers,” says C. Sekhar Reddy, Vice-President, CREDAI, National Chapter.

Issue of dispute

A crucial issue of dispute in several instances, the delivery period of development area should be made clear before hand and also include circumstances under which the date of hand over could get affected. Another important aspect happens to be property title and they should provide a clear narrative of the title.

The code incorporates features such as declaration of payment schedule on part of customer, information on progress of construction and offering a guarantee to customer on compliance of Building Laws to assure protection from any possible adverse consequences of violation.

“The code of conduct is a strong step to build customer confidence and create process standardisation and systems for better product delivery and reputation enhancement,” says G.Yoganand, president, CREDAI Hyderabad.

To avoid protracted litigations in case of disputes between a member developer and consumer, the CREDAI will soon come up with a grievance redressal mechanism.

“This will work at ensuring amicable and a faster settlement of disputes by helping address consumer grievances,” adds S. Ram Reddy, general secretary.

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