Answer By law4u team
RERA interest rate refers to the interest applicable on delays in possession or other defaults by builders and developers under the Real Estate (Regulation and Development) Act, 2016.
Key Points:
- Applicability:
- The interest rate is applicable when builders fail to deliver possession of the property on time or violate terms of the sale agreement.
- Rate Calculation:
- The interest rate is typically specified in the RERA regulations and may vary by state. It often involves a percentage of the total property price, calculated monthly.
- Compensation for Buyers:
- Buyers are entitled to receive this interest amount from builders for each month of delay, ensuring accountability.
- Consumer Protection:
- The provision aims to protect consumers from delays and encourage timely project completion by developers.
Summary: RERA interest rate is the penalty interest charged on builders for delays in property possession, ensuring consumer protection and timely project completion.
