BHUBANESWAR: The much-awaited Odisha Apartment (Ownership & Management) Bill, 2023, which strives to consolidate the law relating to ownership of an apartment in a building with an undivided interest in the common areas and facilities, was introduced in the state Assembly on Monday.
If enacted, Odisha will be the first state in the country to bring an Apartment Ownership Act in compliance with the norms of the Real Estate (Regulation and Development) Act, 2016, said real estate experts.
The provisions of the proposed Act will be applicable to all apartments and buildings converted to apartments and projects on both free-hold and lease-hold lands will come under its purview.
The bill also makes it mandatory for the promoter as well as allottees of a real estate/apartment project to form ‘association of allottees’ - a body that will administer the affairs of the apartment project or property including the common areas and facilities in accordance with the provision of the proposed act.
The association will be formed immediately after booking of seven apartments or 50 per cent of the apartments of a project, whichever is lower, and its forming will be a joint responsibility of the promoter and the allottees/apartment owners. The entire land of the project will be treated as common area and will be registered in the name of the association.
Moreover, the bill clarifies that there will be only one ‘association of allottees’ for one project to be governed by a common by-law. All the registered ‘association of allottees’ will have to adopt and abide by the by-law. Besides, each allottee, including those having multiple apartments in a project, will have one voting right. The promoter will also have one voting right.
On the other hand, the proposed legislation will include all the existing projects under its purview for which various provision has been made in the bill to ensure smooth transition of the projects from an old to new regime.
The bill once enacted will also make occupancy certificate, RERA registration, and registration certificate of association of allottees mandatory for registration of the sale deed. Moreover, the association allottees to be formed will be a body corporate to facilitate smooth registration of project and common area in its favour.
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