What Is RERA Interest Rate?

    General
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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:

  1. Applicability:
    • The interest rate is applicable when builders fail to deliver possession of the property on time or violate terms of the sale agreement.
  2. 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.
  3. Compensation for Buyers:
    • Buyers are entitled to receive this interest amount from builders for each month of delay, ensuring accountability.
  4. 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.

Answer By Law4u Team

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