The Odisha government has issued a major policy reform that brings relief to thousands of homebuyers and apartment owners struggling with resale of pre-2016 residential units. The Housing and Urban Development (H&UD) Department has officially allowed the sale and purchase of apartments constructed before 5 October 2016 without requiring the stringent compliances earlier mandated under the Odisha Apartment (Ownership and Management) Act, 2023 (OAOM Act).
Why the Policy Change Was Necessary
Housing and Urban Development Minister Krushna Chandra Mahapatra confirmed that the earlier restrictions imposed on resale of old apartments were unnecessarily harsh and created significant hurdles for ordinary residents. These restrictions stemmed from the requirements under Section 8(2) and Section 8(4) of the OAOM Act, which aligned with the Real Estate (Regulation and Development) Act, 2016 (RERA).
However, many apartments built and sold before RERA came into force did not have:
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Occupancy Certificates (OC)
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RERA Registration Certificates
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Association of Allottees Registration Certificates (AoA)
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Complete documentation required under the new law
This created a situation where owners of older apartments were unable to register sale deeds during resale, causing severe hardship.
What the Government Found
According to the special order issued by the H&UD Department, the government observed:
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Numerous owners of apartments purchased prior to 05.10.2016 could not sell their units because they could not meet the requirements under the OAOM Act.
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Mandatory submission of OC, RERA registration certificate, AoA certificate, and declarations for pre-2016 units was unreasonable.
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These requirements created undue hardship, especially when such documents did not exist at the time of the original purchase.
The OAOM Act, 2023 was enacted to strengthen apartment ownership governance, but it inadvertently created regulatory roadblocks for resale of older apartments.
Key Highlights of the New Government Order
The Odisha government, exercising powers under Section 35 of the OAOM Act, 2023, issued a notification providing major exemptions for pre-2016 apartments.
1. No Need to Submit RERA-Linked Documents for Pre-2016 Apartments
For any apartment whose first deed of transfer was executed before 5 October 2016, the owner or transferee is:
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Exempted from submitting documents mandated under Section 8(2)
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Not required to furnish OC, Odisha RERA Registration Certificate, or AoA Registration Certificate
2. Only Old Registered Deed Required
At registration of resale:
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The owner must submit only the old Sale Deed or previous transfer document
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No additional structural or compliance documents are needed
This simplifies the registration process significantly.
3. Mandatory Clauses for New Sale Deed
The new sale deed must state that:
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The undivided interest in the common areas and facilities shall be deemed to be conveyed to the buyer
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The proportionate undivided title in common areas is automatically transferred to the Association of Allottees, even if not explicitly mentioned in old deeds
4. Associations Formed Under Earlier Laws Remain Valid
Any association of allottees or society formed under previous laws will remain valid, subject to adoption of bye-laws as per Section 15 of the OAOM Act.
5. No Amnesty for Building Violations
The notification clarifies that:
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The exemption does not condone building violations
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Any illegal construction or breach of building norms will still be subject to action under applicable laws
6. Old Notification Scrapped
The government has rescinded the earlier notification published in Gazette No. 324 dated 1 February 2025, thereby formally reversing the previous restrictions.
Impact on Homebuyers and Real Estate Market
This reform significantly benefits:
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Apartment owners wanting to sell old units
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Homebuyers seeking affordable resale options
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The real estate market, which had stagnated due to legal and procedural hurdles
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Banks and financial institutions, which were reluctant to finance transactions without OC or RERA registration
By simplifying registration for pre-2016 apartments, Odisha has:
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Improved market liquidity
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Removed unnecessary legal barriers
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Ensured that old apartment owners retain their full rights to transfer property
This amendment marks a major step toward practical and citizen-friendly housing governance in the state.
