In an important development for real estate in Odisha, the state government has introduced several initiatives to streamline the common area registration in apartments. This move is aimed at safeguarding homebuyers’ interests and ensuring smoother transactions under the Real Estate (Regulation and Development) Act, 2016 (RERA), and the Odisha Apartment (Ownership and Management) Act, 2023.
Focus on Transparent Registration and Fee Structure
The Odisha government’s recent decisions emerged from a stakeholder meeting led by Housing and Urban Development Principal Secretary Usha Padhee. The focus was on identifying challenges related to the new Odisha Apartment Ownership Act, specifically in registering common areas in apartment complexes. Officials stressed the importance of avoiding double charges on registration fees and stamp duty for common spaces. Consequently, a cost bifurcation will now be mandated within the Agreement of Sale, distinguishing the cost of individual apartments from that of common areas.
This clear separation of charges will simplify transactions and prevent redundant fees. The Odisha Real Estate Regulatory Authority (ORERA) is set to direct stakeholders to specify these cost divisions within the sale agreement, ensuring that buyers understand the total cost breakdown.
Additional Schedules for Accurate Fee Calculation
In cases where the bifurcated costs of apartments and common areas are not already specified in the registration deed, an additional schedule will be attached. This schedule will clarify the cost of the apartment, the value of associated common areas, the overall project cost, and the total cost of common spaces. This measure will help standardize the calculation of registration fees and stamp duty, benefiting both buyers and developers.
Certification for Apartment Associations
The state’s initiative extends to ensuring that competent authorities issue Certificates of Registration to associations under the Odisha Apartment Ownership Act. This certification is crucial for formalizing associations, enabling them to manage and maintain shared amenities more effectively on behalf of the homeowners.
Proposed Model for Reduced Registration Fees
The Odisha government is also considering adopting a nominal fee model for registering common areas, inspired by a similar model employed in Chhattisgarh. The proposal, if approved by the Revenue Department, would reduce financial burdens on homeowners when registering common areas. A consultative meeting is planned to finalize these modalities, particularly for pre-RERA apartments. This step is expected to facilitate the registration of pre-RERA projects, which had previously faced registration challenges due to the absence of RERA’s oversight.
Moving Toward a Transparent Real Estate Sector in Odisha
These efforts by the Odisha government represent a shift toward greater transparency and fairness in real estate transactions. Homebuyers will gain better protection and clarity regarding fees associated with apartment and common area registration. With ORERA playing an active role in enforcing these measures, the future of real estate in Odisha promises a more structured and buyer-friendly experience.