TV
The Odisha government announced the sale and registration of apartments constructed before the Real Estate Regulatory Authority (RERA) was established in a move aimed at easing the process for property owners and buyers facing difficulties due to perceived ambiguities in the existing regulations.
The Urban and Housing Development Department released a notification in this regard on Saturday, stating the new norms.
An official letter issued by the department read, “Without prejudice to any existing Acts and Rules, it is hereby clarified that Registration Authorities will not deny the registration of any apartment citing provisions of the OAOM Act, if the apartment was completed before the commencement of RERA in the State, i.e. prior to February 25, 2017.”
Urban Development Minister Krushna Chandra Mahapatra also confirmed that the sale and purchase of pre-RERA apartments are now permitted. He also instructed the Revenue Department to direct local authorities to facilitate these transactions.
Confusion, Problems in Sale of Pre-RERA Apartments in Odisha:
The Odisha Apartment (Ownership and Management) Act, 2023 (OAOM Act), which came into force on June 28, 2023, aimed to streamline laws related to apartment ownership and management. However, the OAOM Act had led to confusion, with registration officers interpreting its provisions differently from those of RERA, causing disparities in decision-making.
The current notification thus clarified that Registration Authorities will not deny the registration of any apartment citing provisions of the OAOM Act if the apartment was completed before the commencement of RERA in the State, i.e., before February 25, 2017.
The new norms also ensure that owners of pre-RERA apartments can now register sale deeds and transfer deeds without hassle, providing a seamless registration process for pre-RERA projects.
Registration for Pre-RERA Apartments vs RERA-Registered Projects:
Pre-RERA projects weren't subject to the same stringent regulations as post-RERA developments. The new norms aim to bridge this gap, focusing on documentation of common areas and bifurcating costs in the sale agreement. RERA-registered projects have mandated disclosures and timelines that didn't exist in pre-RERA. The Odisha government is working to ensure a streamlined process for pre-RERA registrations to align with RERA principles as much as possible.
Key Provisions of RERA in Odisha:
Mandatory registration of projects over a certain size, disclosure of project plans and timelines, establishment of a grievance redressal mechanism, and regulations for real estate agents are key provisions of RERA in Odisha. Moreover, the act also ensures that developers deposit a certain percentage of project funds in an escrow account to prevent the diversion of funds.
ALSO READ: Odisha announces steps to streamline registration of common areas in apartments
Any Fee Concessions or Exemptions for Registering Pre-RERA Apartments?
The Odisha government has clarified that registration fees and stamp duty will not be charged twice for the same space, ensuring no extra burden on buyers due to the bifurcation of apartment and common area costs. However, specific details on any further concessions or exemptions would need to be confirmed with ORERA or relevant authorities.
Implications for Buyers on Purchase of Pre-RERA Apartment Without New Registration Process:
While the Odisha government's move aims to facilitate transactions, unregistered pre-RERA apartments could face legal complications in the future.
Issues might arise regarding ownership of common areas, dispute resolution, and resale value. Registering the property provides legal clarity and protection to the buyer.
What Buyers Can Do If Encounter Registration Issues for Pre-RERA Apartment:
Buyers can approach the Odisha Real Estate Regulatory Authority (ORERA) for any grievances related to the registration process. The body acts as a mediator and regulatory body to ensure fair practices and protect the interests of homebuyers.
ALSO READ: Massive expansion of Bhubaneswar on cards amid Tri-City plans: Minister
Meanwhile, the new norms come as part of broader urban planning initiatives in Odisha, including significant infrastructure enhancements in cities like Cuttack, Bhubaneswar, and Puri, including the Tri-City project. Additionally, the government is also drafting regulations to allow the sale of parts of plotted land, with guidelines to be formalised soon.
