Mentioning carpet area in brochures and sales agreement is mandatory
The Confederation of Real Estate Developers Association of India (Credai) has decided to make it mandatory for all members to mention carpet area in their brochures and sales agreement. The move aims at bringing transparency in the sector.
Confederation of Real Estate Developers’ Association of India (Credai), which has over 10,000 builders as member across the country, has decided that in the next six months all the members would individually sign a Code of Conduct.
The major highlight of Credai’s Code of Conduct are – mentioning the actual usage area to buyers (Carpet area), compensation in case of project delay and honouring of the agreement between the two parties.
Generally builders or developers sell properties on the basis of super area, which comprise the entire built up area and markup for common spaces like lifts and stairs.
Five months after the housing loan scams forced banks to rein in credit to the real estate sector, Credai has made mandatory for all members of the association to mention carpet area in their brochures and sale agreement, aiming to bring in transparency in the sector.
“We will ensure that all the Credai members sign the Code of Conduct within six months. In Code of Conduct, we have made mandatory for members to mention Carpet area along with super area,” said Credai Chairman Pradeep Jain.
Credai will also set up a consumer redressal forum to resolve property-related disputes. By signing this code, developers will provide details of the actual usage area (carpet area) of the dwelling, break-up of the room sizes, specify the time when they will deliver the project and list the penalty for delays.
“If we find somebody engaging in malpractices, then we will terminate the membership of that particular builder,“ Credai president Lalit Jain said.
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