‘Association of allottees’ must in apartments under new law in Odisha

The Housing and Urban Development department had notified draft rules of the Act in October, seeking public feedback.

Image used for representational purpose only. (File Photo)

BHUBANESWAR: It is now mandatory for the promoter as well as allottees of a real estate/apartment project to form an ‘association of allottees’ to administer the affairs of the apartment project or property including common areas and facilities.

The directive is a part of the much-awaited Odisha Apartment (Ownership and Management) Act 2023 that has come into force in Odisha making it the first state to frame such a law in compliance with norms of the Real Estate (Regulation and Development) Act, 2016.

The new Act, as per the notification of the Law Department published in the Odisha Gazette, will regulate apartment ownership and management provide individual apartment owners with the rights to common areas, and make apartments heritable and transferable. The provisions of the Act are applicable to all apartments and buildings converted to apartments and projects on both free-hold and lease-hold land. 

The association will be formed immediately after the booking of seven apartments or 50 percent of the apartments of a project, whichever is lower, and its formation will be the joint responsibility of the promoter and the allottees/apartment owners.

The entire land of the project will be treated as a common area and registered in the name of the association. Besides, no deed of transfer of apartment in favor of allottees shall be executed before registration of the association of allottees. The new legislation also makes occupancy certificate, RERA registration, and registration certificate of association of allottees mandatory for registration of the sale deed.

The Housing and Urban Development department had notified draft rules of the Act in October, seeking public feedback. However, experts questioned the validity of such notification prior to enforcement of the Act. RERA activist Bimalendu Pradhan said the government should extend the feedback period by another month from the date of issue of the gazette notification of the Act.

A new beginning

The association will be formed after booking of seven apartments or 50 pc of a project
The formation of the association will be joint responsibility of the promoter and allottees/apartment owners
The entire land of the project will be treated as common area and registered in the name of the association