The Odisha government has taken a significant step by allowing the registration of apartments completed before the Real Estate Regulatory Authority (RERA) norms came into effect. This registration of pre-rera apartments decision will facilitate the sale and purchase of flats constructed before February 25, 2017, easing the long-standing concerns of homebuyers and real estate stakeholders in the state.
Government Notification and Its Implications
As per the notification issued by the Housing and Urban Development (H&UD) department, apartments completed before February 25, 2017, can now be registered. The state government has also requested the Revenue and Disaster Management department to issue appropriate instructions to registration officers to ensure smooth processing of such registrations.
The issue arose after the Odisha Apartment (Ownership and Management) Act, 2023, came into effect on June 28, 2023. Many apartment owners faced challenges in registering sale deeds and transfer deeds due to confusion over the retrospective application of the Act.
Addressing Ambiguities in Registration
The notification highlighted that misconceptions regarding the retrospective effect of the Apartment Ownership Act were leading to inconsistencies in registration procedures. Many registration officers were interpreting the provisions of the Act and RERA differently, causing disparities across the state. To resolve these concerns, the government clarified that registration authorities cannot deny registration of apartments citing provisions of the Apartment Ownership Act 2023, as long as the apartments were completed before February 25, 2017.
H&UD Minister Krushna Chandra Mahapatra emphasized that this move would streamline the registration process for pre-RERA apartments. Additionally, the state government is working on bringing appropriate legislation to facilitate the sale of part plots.
Impact on the Real Estate Sector
CREDAI Odisha Chairman, DS Tripathy, welcomed the decision, stating that it would provide significant relief to homebuyers who had invested in pre-RERA apartments but were unable to sell them. This move is expected to boost investor confidence and revitalize the state’s real estate market.
However, real estate expert Bimalendu Pradhan pointed out the need for clarity regarding the definition of a “completed” project. He also raised concerns about apartment projects that still lack occupancy certificates (OC), as such projects are considered incomplete. The government must provide guidelines on how these projects will be treated under the new registration process.
While the government’s decision is a welcome step, there are still challenges that need to be addressed. Key concerns include:
- Defining project completion status and ensuring uniformity in decision-making.
- Clarifying the treatment of apartments pending occupancy certificates.
- Ensuring registration officers follow a standardized process across the state.
- Addressing concerns of homebuyers who purchased properties in projects with incomplete documentation.
With the implementation of these new registration rules, the Odisha government has taken a progressive step in resolving long-pending real estate concerns. However, further clarifications and additional legal reforms may be needed to fully streamline the registration of pre-RERA apartments and boost confidence in the real estate sector.
