Builders agree to sell on basis of carpet area

The code is aimed at bringing in more transparency says Irani.

In an attempt to bring in transparency and fair play,the Maharashtra Chamber of Housing Industry (MCHI) has framed a ‘code of conduct’ for its members,which came into force on September 13. The new norms require full disclosure of property titles,sale agreement on the carpet area basis,disclosure of possession details and additional charges,and arbitration and mediation mechanism; MCHI Honorary Secretary Boman Irani said.

“The code is aimed at bringing in more transparency. It governs all the projects which have commenced after September 13,” he said.

The code,which has 29 items,says clearly that a title of the property under development shall be disclosed in a ‘title certificate’ from a lawyer. It will list the builder’s rights and obligations along with the sale agreement. It also says developers will have to disclose all the requirements under the Maharashtra Ownership Flats Act (MOFA).

However,the code will not be applicable to redevelopment projects,he said,adding,”but projects having free-sale component in them” will come under it. “If any member is found to be violating the code,issue will be referred to the redressal committee. If the member is found guilty,his membership can be suspended till the issue is resolved,” Irani added.