RERA – Buyers to get 10% interest for delay delivery of home

RERA - Buyers to get 10% interest for delay delivery of home

Recently, the builders were allowed to continue advertising and marketing their existing projects till 31st July 2017 without registering with the RERA.

Now, there's good news for home buyers who are facing difficulties due to delayed delivery of housing projects. According to The Times of India, the chairman of RERA Madhya Pradesh, Mr. Anthony de Sa , said that the RERA has prescribed the interest rate of 10% on the invested amount by the buyers facing problems due to delay delivery of homes. The interest rate prescribed by the authority is 2% points above SBI's Marginal cost of fund based lending rate (MCLR).

Initially, in the sales agreement, builders were contracting a compensation rate of Rs. 5 to Rs. 10 per sq. ft. for delayed delivery of homes.

Mr. Anthony also said that if the developers of delayed on-going housing projects are ready to pay the interest as per authority's prescribed rate to the buyers then only their projects will be registered with the RERA.

The Act also mandates buyers to pay the interest rate of 10% on delayed payment of their dues instead of 12% to 18% as contracted in the sales agreement.

The central government notified the Real Estate (Regulation & development) Act , RERA on 1st May 2016 and asked all the states to implement it by 1st May 2017. So, far only nine states and six UTs have notified the RERA rules and other states are in the process of notifying the rules.

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