ABSTRACT
The legal scrutiny of the subvention scheme in the real estate sector involves a detailed examination
of regulatory compliance and the liabilities of developers, financial institutions, and buyers.
Subvention schemes, where developers pay the interest on a buyer’s loan until property possession, are
designed to attract buyers by reducing their immediate financial burden. However, these schemes often
present significant legal challenges concerning transparency, fairness, and regulatory adherence.
Developers who fail to meet their subvention commitments may face substantial legal liabilities,
leaving buyers unexpectedly responsible for loan repayments, thereby impacting their financial
stability. This raises critical questions about the enforceability of subvention agreements and the
protection of consumer rights. Financial institutions involved in these schemes must conduct thorough
due diligence and ensure the fairness of loan terms to protect home-buyers.

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