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Compensation for Delayed Possession Under RERA

Date : 12/3/2024 5:22:43 PM /
IndiRera

For Developers:

The Real Estate (Regulation and Development) Act (RERA) mandates timely possession by developers. If there’s a slowdown, developers are required to compensate buyers with interest on the sum already paid. This interest is computed from the date of actual possession to the date of actual handing over.

To prevent himself from dealing with delays and the costs (financial and reputational) of compensation claims, a developer must ensure that deadlines are realistic. Transparency with buyers and future contingency planning to avoid unexpected roadblocks can preclude delays and minimize repercussions under the RERA umbrella.

Ultimately, possessing information in a timely fashion and keeping lines of communication clear with the buyers will help stave off penalties and ensure a good reputation.