Realtors draw up code of conduct

Understanding the basics of carpet, built up, and total areas while buying a house may no longer be as complex as it is now. The Nagpur branch of Confederation of Real Estate Developers Association of India (CREDAI) has come up with a code of conduct, clarifying several issues related to this business. Aimed at bringing transparency in the realty transactions, the code will be binding on the over 200-odd members of this association.

CREDAI-Nagpur’s General Secretary, Prashant Sarode, said there are around 500 builders in the city but not all were members of CREDAI. The members, however, will have to strictly follow the rules. A grievance redressal cell has also been set-up. Details of which would be available with the builders. Buyers can file their complaints with this cell, he said.

The code, which is a voluminous document, also has a standard formula for computing the built up, total and carpet area in a residential unit. It has been stressed that each builder will specifically apprise the buyer about the carpet area available in a unit, which will be mentioned in the brochure. This is considered to be the entire area within the walls of the house including balconies. The code also specifies that the buyer’s undivided share in the residential complex will be based on the carpet area. The sale deed should have a specific mention that the buyer has verified the deed of declaration in detail and is satisfied.

However, the rates charged on per-square-foot basis will be based on the total area which includes the built-up area and other open space in the complex. “Builders especially, not a part of this association, used different methods to calculate the built-up area. This often left buyer at a loss. Due to this the actual carpet area available would often be much less than what was projected,” said Sarode.

Even as the ratio of the super-built up and carpet area differs from builder to builder the standard computation formula is expected to do away with the confusion with the buyer getting a clear idea about the actual area available in the house, said Sarode.

Tejinersingh Renu of M/s Pritam Builders said the code-of-conduct will bring more clarity n the builders’ operations, doing away with the confusion over grey areas.

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~ by nagpurestate on July 14, 2011.

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