Finally, homebuyers have some good news regarding the delay in possession, which has been the biggest issue in the real estate sector. This is because of the new provision by Real Estate Regulatory Act (RERA).
Vini Mahajan, the interim regulatory authority in RERA, has said that ongoing-projects can advertise themselves even without getting registered. They can keep going with the various activities. On the other hand, the projects which will not submit the application to the regulatory authority for registration will not be able to advertise their projects.
The existing homebuyers will get relief and relaxation under RERA as the authority will work on strict rules. The contract which will take place between the developers and homebuyers can only be highlighted with following the RERA rules.
The homebuyers who will face delay on possession in housing projects will be liable to receive interest on the total amount invested by them. The interest will be calculated keeping the total period of delay and the rate of interest decided by RERA.
Also, the ongoing projects will only be allowed to get registered under RERA only if the developer agrees to the condition of paying interest to the buyer at the decided rate by the authority. This rate is 2 percentage points more than SBI’s MCLR (Marginal Cost of Lending Rate) and not the rate which had been decided at the time of sales agreement.