Responsibilities of a real estate developer

Real estate developers play an important role in the industry as they bridge the gap between the construction ability and the investor’s need. They cater to the value of a project in terms of design, functionality, cost and location. Apart from this, they also work hard in order to absorb international trends, deliver quality realty products and analyse customers’ expectations. The developers form an important aspect of the realty sector as they fulfill the critical need for infrastructure in areas like housing, office space, retail and entertainment, etc.

Who is a real estate developer?

A developer can be an individual or a limited liable company. They engage in business of developing real estate for sale by erecting buildings and other structures along with the sub-division of lands into plots. A developer can also be just a project owner or an owner and a contractor of a project. Every developer has certain obligations which should be satisfied clearly before taking up a project.

The Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body of the organised real estate developers/builders across the country. It emboldens scientific developments to the industry by encouraging research in construction techniques and property development and also plays a vital role in integrity and transparency in the real estate industry. CREDAI voices and represents issues and proactive policies before the government and other concerned authorities. Real estate developers/builders are registered under CREDAI India to bring transparency, stability and growth in the real estate sector.

Responsibilities of a real estate developer:

A real estate developer should be well experienced and as a developer, he should be well aware about the market condition to become successful in the business. He should maintain strong connections with local government in order to get help and accomplish projects on time. Developers can also seek the help of friends who can provide recommendations to help push a project through their sources.

A real estate developer should be prepared to be a part of a large team as he will have to work with architects, contractors, landscapers, politicians, real estate agents, and numerous other professionals.Having a good interaction with these people is required in order to see through a project from start to finish. Developers should also ensure that they choose good and hard-working team members and organise, manage and meet their demands well.

Developers should be flexible enough to travel to other places for the development of their projects. They should also be flexible to read the communities’ needs and demands.

List of responsibilities of a real estate developer:

• Every developer should ensure that there are clear title deeds for every project.
• Developers must first get all the legal, regulatory and statutory clearances.
• A developer should confirm if the land has any legal dues.
• A developer should secure the required finances from funding institutions.
• Developers should explain the real estate terms like carpet area, built up area, super built up areas along with the plan and specifications of the project to their customers.
• Developers should repay the investors’ money with interest if there is any delay or a project is stopped.
• Developers should offer properties at fair prices and should target for the marginal profit.
• Developers should plan ahead to overcome shortage of raw material.
• Developers should enquire with various departments of the municipality in order to establish whether any notices or requisitions relating to the property are outstanding.
• Developers should avoid or minimise delays in project completions.
• They should offer quality construction and services.
• A developer should keep the customers informed on the progress of a construction project and update them regularly.
• Developers should safeguard the interest of customers.
• A developer should offer homes which buyers can select based on the layout, floors, kitchen and several other aspects.
• Developers should sell properties free from encumbrances.
• Developers should give buyers a clear idea on extra charges like electricity, sewerage, covered car park, open car park, VAT and service tax etc.
• The developer will have to stick to the initial master plan that he advertised when he was marketing the project.
• Developers should have transparency while dealing with their customers.
• It is unforgivable for developers to change project plans without informing the customer.
• No developer is allowed to build on green areas, or spaces demarcated as play areas.