BHUBANESWAR: In a big relief to apartment owners, the state government on Thursday made it clear that the apartments built before 2016 can now be sold with certain conditions. Apartment owners had been facing difficulties in registering the deed of transfer, particularly during resale after the Odisha Apartment (Ownership and Management) Act, 2023 was introduced.
As per a special order issued by the Housing and Urban Development department, the allottees or transferees are exempted from submitting the documents as required under Section 8 (2) of OAOM Act for execution and registration of sale deeds during resale or subsequent sale of apartments whose deed of transfer has been executed before October 5, 2016. However, the sale deed for resale of apartments must mention that the percentage of undivided interest in the Common Areas and Facilities (CAF) shall be deemed to be conveyed or encumbered along with the apartment, to the allottee or transferee, even though such interest is not expressly mentioned in the earlier deed of transfer/sale deed.
"The undivided proportionate title in the CAF appertaining to the apartment shall be deemed to be conveyed to the association of allottees, even though such undivided proportionate title is not expressly mentioned in the earlier deed of transfer/ sale deed," the order stated. If any association of allottees or society was already formed under any other law before commencement of OAOM Act, it shall be deemed valid only upon adoption of by-laws in accordance with Section 15 of the said Act, it added.
The special order was issued on the basis of amendments made to provisions of the Real Estate (Regulation and Development) Act (RERA). With this, the H&UD department has also rescinded the notification issued by the government on February 1, 2025.
Officials said the decision will give much-needed relief to homeowners who struggled to sell older properties and boost real estate activities in the state. Earlier, the state government had unveiled the apartment regularisation scheme, which provides scope for regularisation of buildings that were built without prior approval or in deviation from sanctioned plans. In a notification issued on February 1 this year, the department had allowed registration of apartments completed before the commencement of the RERA in the state - prior to February 25, 2017.
However, it was stayed by the Orissa High Court to purportedly 'remove any ambiguity' in the application of the Odisha Apartment (Ownership and Management) Act, 2023, in which there is a clear bar on registration of an apartment if it does not have an occupancy certificate and if the association of allottees of the apartment has not been formed and registered.